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Bitcoin and most major cryptocurrencies are weaker after reports that the Chicago Mercantile Exchange, a gauge of institutional activity, denied claims of listing futures tied to XRP and SOL. Traditional markets also hold their breath awaiting a potential interest-rate hike from the Bank of Japan on Friday, amidst pressure in the crypto space.
Despite Bitcoin (BTC) continuing to hover above the $100,000 mark, retail demand has shown strength. The shrimp-Crab cohort from Glassnode, representing addresses that hold up to 10 BTC, consumed 1.9 times the newly mined supply last month, totaling over 25,600 BTC. Long-term holders appear to be slowing down their selling and profit-taking actions, reflecting a careful yet solid commitment to their investments.
Dropping below the $100,000 threshold could produce negative repercussions. According to OTC trader Jake Ostrovskis from Wintermute, such a decline could create a “sell-the-news” environment linked to an upcoming event.
“The narrative could switch pretty quickly.” - Jake Ostrovskis
“La narrativa podría cambiar bastante rápido.”
Recent data shows that the number of whale wallets containing between 1 million and 10 million XRP has surged to a record high. This suggests increased accumulation and confidence in the asset’s future positioning.
The conversation around Bitcoin Synths is increasingly becoming a hot topic. These synthetic assets enable users to capitalize on Bitcoin’s price movements without owning the asset directly, allowing for easier trading and collateralization without the intricacies associated with wrapped tokens.
Layer-2 solutions for Ethereum are also making themselves known, recording substantial transaction volumes, even amidst ongoing concerns regarding their scalability as demand surges.
On the macroeconomic front, fresh statistics from the Labor Department indicate a deceleration in the ‘all tenant rent’ index, hinting that inflationary fears may be overstated, and that a pivot in monetary policy from the Fed could be on the horizon, favoring risk assets.
What to Watch
Crypto
- Jan. 23: First deadline for SEC’s consideration regarding the NYSE Arca’s proposal to introduce an ETF for Grayscale Solana Trust.
- Jan. 25: SEC decision deadlines will fall for the proposals concerning four spot Solana ETFs.
- Feb. 4: MicroStrategy Inc. will report its Q4 2024 earnings.
Macro
- Jan. 23: Initial Jobless Claims report will be released by the U.S. Department of Labor for the week ending Jan. 18.
- Jan. 23: The National Association of Realtors will publish December 2024’s Existing Home Sales report.
Continue to stay alert!
Technical Analysis
BTC’s downturn from earlier highs hints at the formation of a potential double top bearish reversal pattern. A break below certain levels may signal increases in selling pressure.
Market Movements:
- BTC is down 4.1% to $102,020
- ETH is down 3.85% at $3,206.18
- Major cryptocurrencies face selling pressure across the board.
