Overview

You are reading the Crypto Daybook Americas, your morning insights into the recent shifts in the crypto markets. This daily briefing, debuting as your new morning update, offers a comprehensive analysis of overnight market activities and expectations for the day. If you are not subscribed yet, you can do so here.

Market Sentiment

Amid expectations outlined in the FOMC minutes, crypto traders are downsizing their leverage positions as the Federal Reserve signals a steady interest rate approach until inflation shows clear signs of improvement. The yield on the 10-year Treasury has decreased, and the dollar is softening. Major cryptocurrencies have also risen, with Bitcoin witnessing a 1.2% rise over the last 24 hours, driven by comments from Czech National Bank Governor, Ales Michl, advocating for Bitcoin as a reserve asset. This sentiment was echoed by remarks from President Donald Trump regarding his administration’s adjustments in crypto policies.

BTC traders now exhibit a hesitant strategy while market demands decrease, evidenced by less blockchain activity and a significant rise in volatility. A potential drop to $86,000 is anticipated, although Bitcoin’s current value is still above $97,000. Additionally, open interest in Bitcoin futures has plunged below $60 billion, down from nearly $70 billion, according to Coinglass data, as the recent memecoin hype wanes amid controversies.

Strategic Adjustments

“Currently, the market is experiencing a cooling-down effect,” stated David Gogel, VP of Strategy at dYdX Foundation, noting a decline in capital inflows as Bitcoin struggled at the $105,000 mark earlier this January. This response from traders also reflects changes in risk appetite, as further macroeconomic and geopolitical factors unfold, including rising tensions involving President Trump and Ukrainian President Volodymyr Zelensky, which have raised concerns in market dynamics.

Maintaining vigilance in response to global developments remains crucial as the market potentially transitions into a new phase of trading dynamics.

What to Watch

• Crypto:
  • Feb. 21: TON to become the exclusive blockchain infrastructure for Telegram’s Mini App ecosystem.
  • Feb. 24: Ethereum’s Pecta upgrade tests.
• Macro:
  • Feb. 20, 8:30 a.m.: Canada’s producer price inflation report expected.
  • Feb. 20, 5:00 p.m.: Fed Governor Adriana D. Kugler’s speech on navigating inflation.
• Earnings:
  • Feb. 20: Block post-market earnings are anticipated.