Market Update - January 19 2024

19. Jan.

1. Bitcoin consolidates around 41K-43k as ETF excitement settles: In the wake of the much anticipated approval of spot bitcoin ETFs last week, bitcoin (BTC) prices initially jumped to 49K before suddenly dropping to 42K as investors processed the news of approval and analyzed the data on the flows and volumes from the first day of trading. Since then, BTC prices have been muted, consolidating throughout the week, trading mostly in a tight range between 41K-43k since last Friday.
   
   
2. Spot bitcoin ETFs see more than $10 billion trading volume in first three days: Newly launched ETFs saw over $10 billion in trading volume in the first three days. Over the same period, net inflows came in around 21,000 BTC (just under $900 million), with Blackrock iShares Bitcoin Trust (IBIT) experiencing the largest inflows, reaching 16,362 BTC, and Grayscale’s Bitcoin Trust (GBTC) seeing outflows of about 25,000 BTC.
   
   
3. Ether remains strong against bitcoin: Ether (ETH) continued to gain on BTC since the approval of the first US-based spot bitcoin ETFs last week. The initial jump higher appeared to stem from the waning buzz around bitcoin ETFs and a shift of focus toward a potential spot ether ETF approval later this year. This was fueled further by Blackrock CEO Larry Fink stating “I see value in having an Ethereum ETF … these are just stepping stones towards tokenization,” in an interview last Friday.
   
   
4. Solana builds off Saga phone success with new smartphone: This week, Solana announced the “Chapter 2” smartphone, available for preorder starting at $450. The launch of the new phone is at least a year away, and details around the hardware and design of the product have yet to be released. Excitement is also building around Jupiter’s JUP token, set to launch on Solana at the end of the month.
   
   
5. Stocks flat as global interest rate outlook remains uncertain: US stock indices were flat this week as market participants adjusted their expectations on how early we may see the Federal Reserve start to cut interest rates. Retail data released this week showed that December spending accelerated at its fastest pace since September, raising doubts over how early rate cuts may come. The market is now pricing in a ~52% chance we see a cut in March, down from 70% a week ago.
   

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