Market Update
- Equities are falling while rates gain after comments from Fed Governor Waller suggested that central bank policy will ease slower than the market is anticipating. The 10-year Treasury yield jumped to 4.07% while the dollar index gained 0.7% to reach 103.4. BTC is up 1% today, stabilizing at $43k after volatile price action from last week’s spot ETF launches, which saw it rally to $49k only to fall 15% to $42k in the first few trading days. ETH continues to outperform after gaining 1.4% to reach $2.56k. Notable outperformers in the top 100 today include SportFi L1 CHZ (+18.2%), NFT marketplace BLUR (+17.5%), and decentralized AI network TAO (+9.9%). Investors are anticipating the release of December's retail sales data on Wednesday, wary that a potential decline in U.S. consumer spending could intensify fears of a recession and raise alarms about the state of economic growth.
- Despite the debut of a spot Bitcoin ETF, the inflow into crypto investment products totaled $1.18 billion, falling short of the October 2021 record of $1.5 billion, as reported by CoinShares. Concurrently, there was a surge in trading volumes, hitting a record $17.5 billion last week, significantly higher than the 2022 weekly average of $2 billion. Notably, these volumes constituted nearly 90% of the daily trading on reputable exchanges on January 12. From a geographical perspective, the U.S. witnessed a substantial influx of $1.24 billion last week, while countries like Germany, Canada, and Sweden experienced outflows. This shift in capital distribution is attributed to traders' preference for moving from European markets to the U.S. In terms of specific cryptocurrencies, Bitcoin saw inflows of $1.16 billion, Ethereum $26 million, and XRP $2.2 million. Solana, however, only attracted $0.5 million. In the early January period (Jan. 1 to Jan. 5), crypto funds experienced an inflow of $151 million. Furthermore, since the beginning of the Grayscale-SEC litigation, the total inflow has reached $2.3 billion, highlighting a significant movement of funds into the crypto sector.
- Jupiter, a leading Solana-based DeFi aggregator, has scheduled the release of its much-anticipated JUP token airdrop for January 31 at 10:00 am EST. This event will distribute one billion JUP tokens to nearly a million eligible Solana DeFi users. The allocation of JUP tokens for each user depends on their trading activity and consistency on the Jupiter platform, with a minimum of 200 JUP for all users and additional JUP for those meeting certain criteria. This airdrop is just the first phase in Jupiter's extensive giveaway plan, which includes three more airdrops of one billion JUP each, dates yet to be announced. Additionally, one billion tokens are reserved for community contributors and grants, summing up to 5 billion JUP - half of the total supply - for the community. The remaining half will be managed by the Jupiter team, including allocations for team members, strategic reserves, and liquidity provision. Furthermore, Jupiter is also gearing up to launch a new meme coin as a precursor to the JUP airdrop, using this as a test for their new launch platform. However, details about the meme coin, including its distribution method, remain unclear.
Daily Technical Strategy
Mark L. Newton, CMT
Head of Technical Strategy
ETHBTC has successfully broken out of its 16-month downtrend following four very sharp days of outperformance. As this daily chart shows, ETHBTC has advanced to the highest levels since last October after this recent breakout. Following a lengthy period of underperformance from Ethereum vs. Bitcoin since September 2022, this recent surge in relative strength argues for a period of outperformance in Ethereum vs. Bitcoin in the months to come. While Ethereum might have some coming resistance near $2900 following its recent steep ascent, pullbacks likely will provide attractive risk reward opportunities to favor. Moreover, there remains no evidence of counter-trend exhaustion signals on weekly charts at present to argue for a major peak. Overall, ETHBTC looks attractive, and dips should be used to buy in the weeks to come, as Ethereum should continue to show above-average performance vs. Bitcoin, and increasingly vs. other cryptocurrencies in the months ahead.
Daily Important Metrics
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All metrics as of January 16, 2024 2:13 PM
All Funding rates are in bps
Crypto Prices
| Symbol | Market Cap | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
 BTC | $846B | $43,175 | ↑ 0.42% | ↑ 2.23% | |
 ETH | $309B | $2,573 | ↑ 1.52% | ↑ 13% | ↑ 11% |
 SOL | $42B | $96.83 | ↑ 0.73% | ↓ -4.81% | ↓ -7.04% |
 ADA | $19B | $0.5398 | ↑ 1.07% | ↓ -8.93% | ↓ -11% |
 DOGE | $12B | $0.0814 | ↑ 0.28% | ↓ -8.58% | ↓ -11% |
 DOT | $9.5B | $7.46 | ↓ -2.17% | ↓ -8.03% | ↓ -10% |
 LINK | $8.6B | $15.09 | ↓ -1.63% | ↑ 0.83% | ↓ -1.39% |
 MATIC | $8.1B | $0.8431 | ↓ -0.49% | ↓ -12% | ↓ -14% |
 NEAR | $3.3B | $3.24 | ↓ -2.42% | ↓ -9.85% | ↓ -12% |
Exchange Traded Products (ETPs)
| Symbol | Premium to Nav | Last Price | Daily Change | Year to Date | Relative to BTC YTD |
| GBTC | ↓ -2.94% | $37.25 | ↑ 4.78% | ↑ 1.09% | ↓ -1.14% |
| BITW | ↓ -40% | $24.10 | ↑ 3.88% | ↓ -1.87% | ↓ -4.10% |
| ETHE | ↓ -14% | $19.73 | ↑ 4.50% | ↑ 1.39% | ↓ -0.84% |
| BTCC | ↑ 0.01% | $8.07 | ↑ 3.46% | ↓ -1.34% | ↓ -3.57% |
News
MARKET DATA
BTC Manager Crypto investment products get $1.18b inflows amid spot Bitcoin ETF launch The influx of investment products into digital assets amounted to $1.18 billion. Despite the launch of the Bitcoin ETF, capital inflows of $1.18 billion did not... |
CoinDesk TUSD Loses $1 Peg Amid Binance's FDUSD Focus: Analyst Binance introduced zero-fee FDUSD trading in December, giving users an incentive to sell. |
THOUGHTS AND OPINIONS
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FUNDRAISING AND M&A
Decrypt.co HashKey Group Hits 'Unicorn' Status With $100 Million Raise, $1.2 Billion Valuation OKX Ventures was reportedly among the lead investors in the Series A round, which carried HashKey Group over the $1 billion "unicorn" threshold. |
