Monday Market Report | January 29th - February 4th
📢 Weekly TL;DR
Every Monday, we cover the latest developments and trends in the dynamic and ever-evolving world of cryptocurrency. From price movements, industry news and our favorite resources, we strive to provide our readers with a comprehensive overview of the crypto landscape.
Here’s all the Bitcoin and Crypto news you may have missed from last week:
- Until Bitcoin ETF news becomes humdrum—not there yet by a country mile—we'll keep updating you!
- A (bitcoin and crypto flavored) macro update from the Fed’s FOMC, and—
- Is Ethereum getting dethroned as the obvious blockchain for DeFi?
BlackRock and Fidelity's spot bitcoin ETFs briefly looked like they were going to challenge Grayscale's fund in daily trading volume on Tuesday, marking a potential shift in dominance. Despite Grayscale maintaining its lead by market close, BlackRock and Fidelity briefly surpassed it in daily volume. Since their launch, these three ETFs have accounted for about 90% of total trading activity, reaching a total volume nearing $27 billion. Grayscale's fund has seen a significant decrease in assets, losing over $5 billion, while BlackRock and Fidelity remain net positive by over $2 billion each. In response to competition, Invesco and Galaxy plan to reduce their fund's fee to match competitors, aiming to maintain competitiveness. Over the last 14 days, $7.3B in BTC have flowed into various US Bitcoin ETFs, while GBTC has seen $5.6 in outflows. TheBlock
The Federal Reserve maintained interest rates after its meeting last week, pausing the fourth consecutive rate hike due to persistent inflation and strong labor demand (demand—to be clear—created by US Federal agencies and not by private industry.) Chair Jerome Powell emphasized the need for sustained positive economic trends before considering rate cuts. Stocks and cryptocurrencies dipped initially but recovered slightly. Bitcoin dipped by 0.8%, while Ether lost 1% initially and traded 1.2% lower over the following 24 hours. The Nasdaq Composite and S&P 500 initially fell but recovered slightly. Analysts are watching for signals on potential rate cuts, with consensus on a 47% chance for a cut in March. Labor market and inflation data will guide future decisions, according to Powell. Blockworks
While the crypto community has long hypothesized whether Ethereum ever would or even could ‘flippen’ Bitcoin (in market capitalization), that hasn’t come close to materializing (in fact—the opposite is occurring). But today, apparently, a newer contender for the top venue for DeFi (DEXes, specifically), has reemerged... Thanks to BIP-300, DeFi is now possible (and making its way over to) Bitcoin as well; it looks like Ethereum’s battle for DeFi dominance keeps looking less and less like the slam dunk (that it appeared to be a few short years ago... Trading volume on Solana decentralized exchanges briefly surpassed Ethereum exchanges in December due to meme coin frenzy, and it's happened again recently due to an upcoming token airdrop. Despite Ethereum reclaiming the lead in trading volume, Solana remains competitive, highlighting its cheaper and faster transactions. The impending launch of JUP, the official token of Solana DEX aggregator Jupiter, has driven recent activity. Solana's trading volume on Jupiter ($1.2B in daily volume) outpaced that of Ethereum's Uniswap V3, showcasing the growing pressure on Ethereum from Solana's network advantages. Decrypt Decrypt
📰 Other Community News
In the cryptocurrency community, there's always something going on. Here are a few events and happenings that you might be interested in:
- New spot bitcoin ETFs amass 150,000 BTC as GBTC market share falls to 36% TheBlock
- Fed holds interest rates, Powell says sticky inflation would delay future cuts Coindesk
- Company formed from Celsius bankruptcy estate launches bitcoin mining operation Blockworks
- Bitcoin Price Nears $44K as ETFs See Net Inflows for First Time in a Week Coindesk
- Solana Network Activity Surges as Crypto Traders Turn Bullish on SOL Decrypt
- Ethereum Could Nearly Double in Price on ETF Approval in May: Standard Chartered Decrypt
- Argentina President Javier Milei Drops Crypto Tax Plan Decrypt
For more new stories, visit our LinkedIn
📈 Weekly Moves
- The global cryptocurrency market has reached a total market capitalization of CAD $2.21 Trillion.
- Bitcoin continues to lead the market with a dominance of 51.1%, followed by Ethereum at 16.8%.
- Bitcoin is currently the top trading pair on NDAX, followed by Solana, Cardano, Ethereum, XRP, Chainlink, Avalanche and Hedera.
- Week over week, the value of Bitcoin (BTC) is up 1.08% and currently trading at $57,552, while Ethereum (ETH) is up 1.15%, now trading around $3,095.
Top Weekly Movers @ NDAX
Who was the top performing asset on NDAX last week?
Solana came out of its correction last week, up 10.8% w/w. SOL is ranked #5 by market cap ($41.6B) and is down 64% from its ATH (all-time high).
Avalanche also made a mini-comeback, gaining 11% on the week. AVAX is ranked #10 by market cap ($12.2B) and is down 77% from its ATH.
Blockchain oracle pioneer Chainlink was up 17% last week. LINK is now trading above $20 CAD, is ranked #12 by market cap ($9.4B US) and is down 68.5% from its ATH.
As of 02/05/2024 12:00 AM EST, values in CAD.
Keep an eye on the market here 👉 Cryptocurrency Prices
📅 Upcoming Events
Mark your calendars!
- Feb 13 - January CPI
- Mid April - Bitcoin block reward halving
📖 Educational Resources
For those of you looking to learn more about bitcoin and crypto markets this week:
- NLW looks at the growth in hashrate and the state of the mining markets in the lead up to the Bitcoin halving. – The Breakdown w/ NLW – The State of Bitcoin Mining Heading into the Halving
- Alex Gladstein of the Human Rights Foundation reports on how Bitcoin is monetizing stranded energy, financing electrical infrastructure, and empowering millions. – Shinobi for Bitcoin Mag - STRANDED: HOW BITCOIN IS SAVING WASTED ENERGY AND EXPANDING FINANCIAL FREEDOM IN AFRICA
- In this episode: - Why Bitcoin is the Great Reset - Rocket Fuel for Bitcoin’s Next Bull Run Loaded - Jamie Dimon's comments about Bitcoin at the WEF Forum in Davos – Real world asset "Tokenization" - QE infinity is here — but just for banks? - Real Estate outlook (commercial and residential) - How much should you allocate to Bitcoin? - Bitcoin ETFs - Coin Stories w/ Natalie Brunell - Preston Pysh on Economic Outlook, Asset Tokenization, and Why Bitcoin is the Great Reset
- Explore the nuances of Bitcoin mining with Harry Sudock. We delve into miner strategies for handling high on-chain fees and unseen aspects of OTC transactions on the blockchain. A must-listen for Bitcoin enthusiasts. - Bitcoin Fundamentals (The Investors Podcast) - HOW DECENTRALIZED IS BITCOIN MINING W/ HARRY SUDOCK
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Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.