| Reading time: 5 minutes | News | Crypto Converter | Crypto Calculators | Cardano leads losses as Bitcoin retreats below $93K; traders eye Trump's inauguration | | Key points: | ADA downtrend: Cardano's ADA fell 8%, leading losses among crypto majors, as Bitcoin's slide weighed on the broader market. Economic data anticipation: Upcoming FOMC and NFP reports are expected to shape market sentiment, with traders awaiting potential catalysts from Trump's inauguration.
| News: ADA leads declines amid Bitcoin weakness - Cardano's ADA experienced an 8% drop on Thursday, leading losses among major cryptocurrencies, as Bitcoin continued its retreat. BTC slipped to $93,000 on Wednesday after robust U.S. economic data pushed Treasury yields higher, dampening sentiment across equities and crypto markets. | The Institute for Supply Management's (ISM) latest report on U.S. service providers showed a stronger-than-expected performance, with the prices-paid measure hitting its highest level since early 2023. This, in turn, raised fears of prolonged high interest rates, further pressuring risk assets. Other major tokens, including Solana (SOL), BNB Chain (BNB), and Ethereum (ETH), saw declines of nearly 10% since Monday. | Market focus: Bitcoin awaits catalysts - Traders are turning their attention to two critical economic reports this week: the Federal Open Market Committee (FOMC) minutes and the Nonfarm Payrolls (NFP) report. Both are expected to heavily influence Bitcoin's price trajectory. | The NFP, in particular, offers insight into the U.S. labor market's health. A strong jobs report could signal economic resilience, potentially prompting higher interest rates, which are historically bearish for risk assets like Bitcoin. Conversely, weaker data could bolster the case for rate cuts, supporting a recovery in crypto prices. | According to Singapore-based QCP Capital, Bitcoin's current pullback may only be temporary. "With market anticipation building, we believe Bitcoin's pullback is merely a pause, setting the stage for a bullish rally as Trump's inauguration fuels optimism," the firm noted in a market broadcast. | What's next? - President-elect Donald Trump's inauguration on January 20, 2025, is widely anticipated to mark a shift in U.S. crypto regulations. Traders speculate that a pro-business administration could introduce reforms benefiting the cryptocurrency market, including a potential strategic Bitcoin reserve. | However, concerns persist that Trump's inauguration could turn into a "sell-the-news" event, especially following recent profit-taking across financial markets. | While Bitcoin's price remains subdued, market participants are closely monitoring Friday's economic data for signals that could drive the next significant move in crypto markets. | Bitcoin retreats to $93K, but $120K bullish bets dominate options market | | Key points: | Bitcoin has erased its New Year gains, retreating to $93,000 amid rising U.S. Treasury yields. Bullish sentiment prevails in the options market, with $120,000 strike calls remaining highly popular.
| News - Bitcoin's New Year rally above $100,000 has faltered, with BTC retracing to $93,000. The pullback coincides with a surge in the U.S. Treasury yields, with the 10-year real yield hitting 2.29%, its highest level since November 2023. Rising yields across major economies, including Japan and the U.K., have contributed to a risk-off sentiment affecting equities and cryptocurrencies alike. | Thomas Erdosi, Head of Product at CF Benchmarks, stated that the current slide reflects higher Treasury yields and a reduced likelihood of Fed rate cuts this year. He added that crypto assets tend to perform better in liquid conditions, which are currently constrained by hawkish monetary policies. | Options market: Bullish bets remain strong - Despite macroeconomic jitters, the Bitcoin options market on Deribit continues to exude optimism. Call options, which indicate bullish sentiment, hold nearly double the value of puts, with active calls totaling $14.87 billion. | The $120,000 strike call option is the most traded, with an open interest of $1.47 billion, followed by $101,000 and $110,000 strikes, each surpassing $1 billion. Meanwhile, the most popular put option at $75,000 holds a comparatively modest open interest of $595 million. | Erdosi believes market dynamics could shift later this month as President-elect Donald Trump's January 20 inauguration may usher in a crypto-friendly regulatory environment, bolstering sentiment further. | What's next? - Bitcoin faces key resistance at $100,000, with the macro environment driving near-term volatility. While bullish options data suggests long-term optimism, sustained upward momentum may hinge on favorable macroeconomic developments, including regulatory clarity under the new U.S. administration. | US-based Bitcoin reserves surpass offshore holdings by 65%, CryptoQuant reports | | Key points: | US entities now hold 65% more Bitcoin than offshore counterparts, with reserves reaching a record high on January 9. Institutional interest drives dominance, with MicroStrategy adding 1,070 BTC and US-listed ETFs attracting $106.8 billion in inflows.
| News: US dominates Bitcoin reserve holdings - Bitcoin reserves held by US-based entities reached an all-time high, surpassing offshore holdings by 65%, according to CryptoQuant data. The US to offshore Bitcoin ratio has risen to 1.65, up from 1.24 in September 2024. This metric aggregates holdings from known US institutions like MicroStrategy, spot Bitcoin ETFs, exchanges, miners, and the government, compared to offshore entities. | Driving factors: Institutional demand fuels growth - The rise in US-held reserves aligns with increased institutional interest in Bitcoin. MicroStrategy, the largest corporate Bitcoin holder, recently added 1,070 BTC worth $101 million at an average price of $94,004 per Bitcoin. This brings its total holdings to 447,470 BTC, valued at $28 billion. Similarly, US-listed spot Bitcoin ETFs have attracted $106.8 billion in inflows since their launch in January 2024, simplifying Bitcoin access for institutional and retail investors. | This surge in reserves coincided with Bitcoin's price rally, which peaked at $108,135 in January 2025. | What's next? Market adjustments and outlook - Bitcoin's price correction, currently at $93,000, reflects healthy consolidation after surpassing the $100,000 psychological milestone. Unrealized profit margins have narrowed, with $521 million liquidated in the past 24 hours. Analysts cite strong US job data and rising bond yields as contributors to the recent price dip. | Despite this pullback, institutional participation and regulated financial products like ETFs continue to bolster Bitcoin's long-term growth narrative. | Standard Chartered expands crypto footprint in Europe with Luxembourg entity | | Key points: | Standard Chartered enters the European crypto market with its Luxembourg entity, leveraging the MiCA framework to provide regulated digital asset custody services. Laurent Marochini, former Société Générale executive, is appointed CEO, signaling a strong leadership direction for its EU crypto ambitions.
| News: Standard Chartered's European crypto expansion - Standard Chartered has officially entered the European cryptocurrency market by launching a new Luxembourg entity after securing a digital asset license under the Markets in Crypto-Assets (MiCA) Regulation. Announced on January 9, 2025, this initiative establishes Luxembourg as the bank's regulatory gateway to the European Union (EU) for crypto and digital asset custody services. | Laurent Marochini, previously Head of Innovation at Société Générale, has been appointed CEO of the Luxembourg branch, highlighting the strategic importance of this expansion. | Driving factors: Why Luxembourg and why now? - The decision to launch in Luxembourg aligns with the EU's recently implemented MiCA framework, offering a structured and regulated environment for digital assets. This move follows Standard Chartered's earlier crypto initiatives, including the launch of custody services in the United Arab Emirates (UAE) in September 2024. | According to Margaret Harwood-Jones, Standard Chartered's Global Head of Financing, the new services reflect the bank's commitment to offering secure and institutional-grade digital asset solutions within the EU. | What's next? - The Luxembourg entity is a critical milestone in Standard Chartered's long-term digital asset strategy, with ambitions to scale globally. The bank plans to expand its crypto offerings beyond custody services, paving the way for broader institutional adoption within the EU and beyond. | | More stories from the crypto ecosystem | | Interesting facts | One of the first cryptocurrencies to be mined on mobile devices was Electroneum (ETN), launched in 2017. Electroneum's mobile mining feature allowed users to mine cryptocurrency using their smartphones without consuming large amounts of power, making crypto mining more accessible to everyday users. The total market capitalization of all cryptocurrencies surpassed $3 trillion for the first time in 2021, signaling the growing mainstream acceptance of digital assets and their increasing importance in global financial markets. The world's first Bitcoin-backed mortgage was issued in 2021 by a Miami-based company, allowing buyers to use Bitcoin as collateral for real estate purchases. This marked a major step in integrating cryptocurrency with traditional financial systems and real estate markets.
| | Top 3 coins of the day | Neo (NEO) | | Key points: | At press time, NEO was trading at $14.86, reflecting a 1.93% increase over the last 24 hours. It emerged as the biggest gainer in the last 24 hours, according to CoinMarketCap.
| What you should know: | Neo recorded a 1.93% gain over the past 24 hours, establishing itself as the top-performing cryptocurrency. On the daily chart, the Bollinger Bands highlighted a consolidation phase, with the price trading near the middle band. Resistance was observed at $16.43, aligning with the upper band, while support stood near $13.01 at the lower band. The Awesome Oscillator (AO) displayed a subtle shift toward bullish momentum, marked by emerging green bars after a series of red bars. This indicated a potential reversal in market sentiment. However, trading volume remained moderate, suggesting a wait-and-watch approach among investors. Immediate price movements will depend on whether Neo can sustain buying pressure to breach resistance levels or if the price retreats toward support. Traders are advised to keep an eye on volume spikes, as they could signal the next significant price move. | Strike (STRK) | | Key points: | At press time, STRK was trading at $16.65, reflecting a 43.42% increase over the last 24 hours. It was the top trending cryptocurrency in the last 24 hours, according to CoinMarketCap.
| What you should know: | STRK demonstrated explosive growth over the past 24 hours, surging by 43.42% to claim the top spot among trending cryptocurrencies. On the daily chart, the price sharply broke above the SMA 9, highlighting strong bullish momentum. The Chaikin Money Flow (CMF) indicated robust capital inflows, suggesting significant buying activity and sustained market interest. Additionally, the trading volume spiked considerably, further confirming the heightened market activity surrounding STRK. Immediate resistance is seen near $18.00, while support rests around $14.50. Traders should closely monitor STRK's movement, as a sustained rally may push the price toward higher resistance levels, while failing to hold support could lead to short-term corrections. | dogwifhat (WIF) | | Key points: | At press time, WIF was trading at $1.55, reflecting an 8.75% decrease over the last 24 hours. It ranked as the second biggest loser in the last 24 hours, according to CoinMarketCap.
| What you should know: | WIF continued its downtrend, recording an 8.75% drop in the last 24 hours. The Bollinger Bands on the daily chart indicated heightened volatility, with the price nearing the lower band, suggesting bearish pressure. The RSI stood at 30.43, approaching the oversold zone, implying that selling momentum is strong but could potentially trigger a reversal if overselling persists. Trading volume showed a moderate uptick, reflecting increased activity during the price decline. Immediate support is located near $1.50, aligning with the psychological level, while resistance is positioned at the middle Bollinger Band around $2.22. Traders should monitor WIF closely, as a breach below the support could result in further losses, while consolidation or a bounce-back might signal recovery opportunities. | How was today's newsletter? | |
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