Cointree Crypto Market Update - January 24th 2024
Market report for traders
🔮 BTC and altcoins
Over the last 7 days, Bitcoin ends at AU$60,424, dropping by -10.46% at the time of writing. Meanwhile, Ethereum ends at AU$3,388, falling -16.27% week-on-week. And in other altcoin movements, Arbitrum sinks -24.33%, Cardano -14.33%, and Solana -16.11%.
🗞 What’s happening in the news?
If you've been keeping an eye on your dashboard, you've probably seen the recent market slump. In just a day, the total crypto market cap dipped by 4.5%. Bitcoin (BTC) down by 5%, Ethereum (ETH) by 7%, and several altcoins falling more than 10%.
So what's behind this sudden drop?
Some analysts had predicted that BTC’s ETF approval would see Bitcoin’s price rise and then fall. These events are known as “sell-the-news" events, a phenomenon where prices rise in anticipation of an event but drop post-occurrence.
Coindesk reports that FTX, the infamous bankrupt crypto exchange, sold a huge amount of Bitcoin. This big sell-off may have caused Bitcoin's price to hit its lowest in two months. This kind of sudden sale can shake up the market, but now that it's done, things might start to stabilise once again. “In theory, now that FTX is done selling its substantial holdings, the selling pressure could ease since a bankruptcy estate liquidating holdings is a relatively unique event”.
In more uplifting news, the newly approved spot Bitcoin ETFs have been a success, gathering an impressive 95,000 BTC in just six days. Worth over USD$4 billion, Bitcoin becomes the second-largest ETF asset class in the US, now more popular than Silver.
On the Ethereum front, the SEC has delayed its decision on the proposed Ethereum spot ETF to March 5, 2024. Despite this delay, there's a significant sense of optimism amongst the crypto world. Could Ethereum experience a similar surge in price following an eventual ETF approval? It's a possibility that has many investors and enthusiasts watching closely.
📖 What we’ve been reading
Bottom Fishing in Bitcoin? Here Are the Key Signs To Watch For “Savvy traders are looking for signs of capitulation in the spot and perpetual futures market, and renewed demand for calls when calling market bottom and trend reversal higher.”
US lawmakers press Meta over crypto and blockchain plans “The United States congresswoman wants to know what Mark Zuckerberg's Meta is planning to do with its five crypto-related trademark filings lodged with the USPTO.”
Solana, Cardano Lead Crypto Market Lower as Traders Grapple With Bitcoin Headwinds “Prominent cryptocurrencies started the week in the red as fears of large bitcoin sales continue to confront investors, who are likely scaling back exposure in the broader market in anticipation of lower prices.”
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.