BlackRock’s $1.7B SOL move

March 27, 2025

Reading time: 5 minutes

New crypto tax rule: A big win or just the start of stricter oversight?

Key points:

  • On March 27, the U.S. Senate voted 70-28 to cancel an IRS rule that changed the definition of a "broker" for crypto tax reporting.

  • The decision now moves to President Trump, who is expected to sign it into law.

News - As tax season approaches, crypto holders need to stay informed about the IRS’ latest rules. The agency has introduced new tax reporting requirements for crypto transactions.

On March 27, 2025, the U.S. Senate voted 70-28 to repeal an IRS rule introduced under the Biden administration. This rule, part of the Infrastructure Investment and Jobs Act, required DeFi platforms and other crypto entities to report detailed customer transactions to the IRS. The decision now goes to President Trump, who is expected to approve it.

However, centralized crypto exchanges, payment processors, and certain wallet providers must still report user transactions using Form 1099-DA. Brokers must send Form 1099-DA to users by January 31, 2026, and file reports with the IRS by February 28, 2026.

Crypto community reacts - The crypto community is divided over the IRS rule repeal. DeFi supporters call it a big win, saying the rule would have hurt innovation and compromised privacy. They believe fewer regulations will help the industry grow. 

On the other hand, some experts worry that without the rule, tax evasion could increase, and the IRS might create even stricter rules later. Without clear guidelines, the IRS could find new ways to track crypto transactions, leading to stronger enforcement in the future.

What this means for crypto holders - The IRS rule repeal is a big change, but crypto users still need to pay taxes. The real change is stricter oversight. With DeFi lacking transparency, the IRS may start monitoring wallets more closely. This means failing to report taxes could lead to serious trouble in the future.

Starting in 2025, all crypto brokers (exchanges, wallets, and trading platforms) must report sales, profits, and cost basis directly to the IRS. Investors should, therefore, keep clear records of all transactions to avoid potential tax penalties.

With crypto prices rising, the IRS is clearly increasing its oversight of digital asset transactions. Failure to report crypto earnings could lead to audits and fines from the IRS.

GameStop adds Bitcoin to treasury reserves with $1.3B investment plan

Key points:

  • U.S. video game retailer GameStop has announced plans to include Bitcoin as a treasury reserve asset.

  • This move aligns with GameStop’s broader plan to strengthen its financial position.

News - GameStop, the well-known video game store, has decided to add Bitcoin to its treasury reserves. This means the company will keep some of its money in Bitcoin instead of only using cash or traditional investments.

GameStop plans to invest $1.3 billion in Bitcoin. This is similar to what Tesla and MicroStrategy have done before. These companies use Bitcoin to protect their money from inflation and currency changes. The idea is simple: Bitcoin might grow in value over time, helping GameStop stay financially strong and competitive.

Impact on GameStop - GameStop has struggled in recent years due to more people buying games online instead of in stores. The company’s finances took a hit, especially after the pandemic, as its offline store struggled to compete with digital downloads.

Adding Bitcoin to its reserves could be a game-changer. It might help GameStop stabilize its finances and attract new investors who believe in Bitcoin’s future. If it works, it could help the company grow and recover. If not, it could be a risky bet.

Impact on Bitcoin - GameStop’s $1.3 billion investment in Bitcoin is another sign that big companies are starting to see BTC as a valuable asset. Bitcoin has always been seen as high-risk but high-reward, yet more and more businesses are investing in it.

This trend shows that companies are looking beyond Bitcoin’s short-term price changes and instead trusting it as a long-term store of value. GameStop’s move could also help build the idea of a Bitcoin Strategic Reserve, where businesses and even governments hold Bitcoin as part of their financial plans.

With increasing institutional adoption, Bitcoin’s credibility strengthens. Plus, if more companies follow GameStop’s example, we could see a big change in how businesses manage their money, bringing Bitcoin further into mainstream finance.

The trade war rages on: Which cryptos will thrive in Q2?

Key points:

  • On March 27, 2025, Donald Trump announced a 25% tariff on imported cars, effective April 3.

  • Unlike Bitcoin, Ethereum is struggling as it faces increased liquidation pressure. 

News - Trump’s trade war is getting bigger as the U.S. adds a 25% tax on car imports. Since taking office, he has placed many tariffs, hitting Canada, Mexico, and China the hardest. But this may just be the beginning. A new set of "reciprocal" tariffs on April 2, 2025, could bring even more changes.

The U.S. stock market has struggled, with all three major indexes dropping in Q1, wiping out billions of dollars. But what about crypto? Can Bitcoin and altcoins prove they are a safe place for money during tough times? This year could be their biggest test yet.

What to expect in Q2 - Experts have warned the U.S. auto tariffs, which take effect on April 3, could generate over $100 billion annually but may also trigger inflation and supply chain disruptions.  

With these trade tensions, Q2 could be a highly volatile period for global markets. Despite this, Bitcoin remains strong above $70,000, showing resilience. BlackRock, a major investment firm, believes Bitcoin could perform well in a recession, as investors seek alternatives to stocks and traditional currencies.

Bitcoin is often called "digital gold" because its value tends to rise when the economy is uncertain. If the trade war worsens, stocks could become too risky. In response, large investors (like banks and hedge funds) may invest more in crypto to protect their money.

Altcoins to watch - Ethereum is under selling pressure because the U.S. has not yet approved Ethereum ETFs. Without this approval, big investors find it harder to put money into ETH.

However, Ethereum is still important for blockchain, decentralized finance (DeFi), and NFTs. If more people start using crypto due to economic problems, Ethereum could recover later this year.

Solana and Ripple are in a similar situation. Solana is known for fast and cheap transactions, while Ripple focuses on making cross-border payments easier. These tokens could become more popular if Bitcoin attracts more money.

However, Bitcoin must remain stable and avoid another big drop like it had in early February when it lost $100k.

BlackRock’s 1.7B BUIDL fund moves to Solana – Here’s why it matters

Key points:

  • BlackRock’s $1.7 billion BUIDL fund has shifted to Solana because of its fast and low-cost transactions.

  • If more large companies follow BlackRock’s lead, Solana could become even more important in decentralized finance (DeFi).

News - BlackRock, the world’s largest asset manager, has launched its $1.7 billion BUIDL fund on Solana. This shows that big financial companies are starting to trust and use blockchain for investments.

The BUIDL fund is a tokenized treasury fund. To simplify, imagine the BUIDL fund as bond treasuries, which offer returns to investors. However, instead of using traditional bond systems, the BUIDL fund operates on a blockchain.

The bigger picture - BlackRock chose Solana for its $1.7 billion BUIDL fund, and this decision wasn’t random. Experts believe Solana’s fast transactions, low fees, and scalability made it the best choice for BlackRock’s fund.

Unlike Ethereum, which has high fees and slow transactions, Solana is a cheaper and faster alternative for large investments. While this move might seem like a small step, it’s a big shift for the blockchain world. First, it helps Solana become more useful in the real world. Second, it shows other blockchains could have similar chances in the future.

Most importantly, it’s clear that traditional finance is getting more involved in the blockchain world. Now, it is allowing people to earn returns by investing in BlackRock’s BUIDL fund on Solana.

Impact on SOL - Despite having strong technology and good fundamentals, Solana (SOL) has been one of the worst-performing assets since the post-election period. It lost important resistance levels and had trouble building a strong demand area, showing lower lows. This has worried investors due to its weak short-term price action. 

However, moves like BlackRock’s $1.7 billion investment in Solana are important for its future growth. As more big institutions get involved, the demand for SOL is likely to increase, which could push its price up and make the approval of a Solana ETF more likely this year.

Interesting facts

  • BlackRock's Bitcoin ETF (IBIT) became the fastest-growing ETF in history, amassing over $15 billion in assets within just two months of its launch in January 2024. This rapid success signaled a massive shift in institutional adoption of cryptocurrency.

  • In January 2021, GameStop’s stock price jumped over 1,500% in just two weeks because small investors on Reddit teamed up to buy shares. This caused huge losses for big hedge funds that had bet against the stock. It was one of the biggest short squeezes in history.

  • In the U.S., the IRS treats cryptocurrency like property, not money. This means that every time you sell, trade, or even spend crypto – like buying a coffee – you might owe taxes on any profit you made.

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Top 3 coins of the day

Sui (SUI)

Key points:

  • SUI emerged as the top daily gainer with a nearly double-digit surge, due to both internal and external developments.

  • At the time of writing, the altcoin was valued at $2.74.

What you should know:

On March 26, 2025, Michael van de Poppe, a prominent crypto analyst, announced the launch of Walrus Protocol, a decentralized storage platform on the SUI blockchain by MystenLabs. This news caused SUI’s price to jump 10%, from $1.50 to $1.65 in just four hours, with trading volume doubling to $1.31 billion. Active addresses on the SUI network also grew by 15%, showing more interest in the platform. The SUI/BTC pair also saw a rise. Technical indicators like the MACD flipped bullish, suggesting the price could keep rising. Over the past week, SUI has been hitting higher highs, with daily gains over 6%. Notably, this price action follows two weeks of consolidation. This could set the stage for a potential retest of the $3.25 resistance, especially as the Walrus Protocol launch nears.

Toncoin (TON)

Key points:

  • Not far behind in daily gains is TON, with an 8% jump in the past 24 hours. 

  • Meanwhile, on March 26, Elon Musk confirmed the integration of the AI chatbot Grok into Telegram.

What you should know:

Toncoin’s impressive bounce back into the top gainers list is noteworthy. After a tough Q1, where TON dropped 65% from its December peak of $7.20 to $2.50, it showed strong buying signals, backed by volume indicators. Currently trading above $3.89, a breakout above the $4 mark could attract more investors, potentially pushing TON’s market cap beyond $10 billion. The integration of Grok AI with Telegram could also boost TON's demand further. While technical indicators show positive momentum, TON is at a crucial resistance level. The RSI has not yet shown overextension, making a breakout above $4 seem increasingly likely, though sustaining that level will be the real test. Otherwise, failure to break $3.89 could result in a pullback to $3.37. 

Floki (FLOKI)

Key points:

  • FLOKI has seen a 12% increase over the last 24 hours. 

  • To invalidate the bearish outlook, FLOKI must breach the $0.00009357 resistance.

What you should know:

FLOKI has been trying to recover from recent price losses but is facing selling pressure from short-term holders (STHs). The MVRV Long/Short Difference is at -40%, indicating that short-term holders are currently in profit. This makes it harder for FLOKI to maintain its current gains. On the 1D chart, FLOKI is stuck between the $0.00007132 and $0.00005903 levels. Even if it manages to hold $0.00007132 as support, it may struggle to rise further due to the negative MVRV signal. To reverse the bearish trend, FLOKI needs to break the $0.00009357 resistance. However, without strong support from previous cycles, the chances of breaking through this resistance are uncertain. If FLOKI fails to maintain support, it may face further price struggles.

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