The crypto market experienced a surge today, with Bitcoin, Ether, ADA, XRP, and various altcoins witnessing rallies. This breakout led to the total market capitalization reaching a one-year high of $1.8 trillion on Jan. 11. On Jan. 10, the United States Securities and Exchange Commission officially approved spot Bitcoin exchange-traded funds (ETFs) for various entities, including ARK 21 Shares, Invesco Galaxy, VanEck, WisdomTree, Fidelity, Valkyrie, BlackRock, Grayscale, Bitwise, Hashdex, and Franklin Templeton. Trading for these products commenced on Jan. 11, with iShares Trust gaining 22.5% in premarket activity. Despite institutions not expecting Ether to surpass Bitcoin in price, a spot ETF approval could attract over $2.4 billion in capital inflows. The crypto market rally triggered a wave of short position liquidations across the market, totaling over $183.6 million in 24 hours.
Bitcoin recently touched new highs for 2023 but faced resistance, struggling to break out of its established range. The price action encountered challenges near $50,000, and market conditions became increasingly volatile. Despite the initial optimism fueled by the launch of the United States spot Bitcoin exchange-traded funds (ETFs), BTC/USD experienced fluctuations, moving up by almost $3,000 and then retracing. Traders are anticipating more substantial price movements, and various factors, including on-chain data, supply shocks, and adjustments in derivatives markets, suggest favourable conditions for the next phase of the ongoing Bitcoin bull market. However, overcoming the resistance at $50,000 has proven to be a significant challenge for Bitcoin, reminiscent of the levels observed in December 2021. The idea that U.S. institutions now have unrestricted access to Bitcoin exposure has sparked discussions about the long-term supply impact. Given Bitcoin’s finite supply and a portion of tokens already lost permanently, the entrance of major players seeking substantial amounts of BTC for their products could lead to a significant supply “squeeze.”
Subsequently, Ethereum (ETH) witnessed a 5% price surge within the last 24 hours, driven by the positive sentiment in the market. As of noon trading hours (GMT) on Thursday, Jan 11, ETH was trading at $2,600, reflecting a 14% increase in the daily time frame. Recent events indicate that Vitalik Buterin’s proposal to increase Gas Fee limits has played a role in fostering an optimistic sentiment surrounding the ETH network. Examining the Ethereum market, Thursday has seen a continuation of the upward movement observed on Wednesday. It appears that Ethereum is poised for further gains. The $2,500 level stands out as the most apparent target for buyers to defend at this juncture, although the $2,400 level is also deemed crucial.
The December Consumer Price Index report fell short of expectations for slowing inflation, revealing that prices were rising more quickly than predicted. The month-on-month CPI came in at 0.3%, exceeding the expected 0.2%, and the year-on-year index rose by 3.4%, higher than the expected 3.2%, according to data from the U.S. Bureau of Labor Statistics. While typically causing volatility in risk assets, this month’s CPI release added to existing tension in crypto markets. The approval of the first U.S. spot Bitcoin exchange-traded fund (ETF) on Jan. 10 and its first trading day on Jan. 11 contributed to the ongoing dynamics in the crypto space. Institutional interest in crypto beyond Bitcoin began on Nov. 9, 2023, with BlackRock confirming plans for a spot Ether ETF through a Form 19b-4 filing submitted to the SEC.
Read more: SEC Officially Approves 11 Bitcoin ETFs
Weekly Snapshot:
| USD ($) | 04 Dec 23 | 11 Jan 24 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $44,180 | $46,399 | 5.02% | $45,900 | $40,814 | $48,969 | $42,785 |
| ETH | $2,269 | $2,620 | 15.45% | $2,431 | $2,114 | $2,688 | $2,172 |
| BNB | $323.60 | $308.70 | -4.60% | $332.75 | $301.42 | $327.04 | $290.12 |
| Crypto | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | 27.63% |
| Ethereum (ETH) | 35.52% |
| Binance Coin (BNB) | -4.19% |
| Resistance 2 | $48,000 | $2,750 | $1.15 | $350 |
|---|---|---|---|---|
| Resistance 1 | $44,500 | $2,400 | $1 | $338 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $40,000 | $2,150 | $0.75 | $300 |
| Support 2 | $36,000 | $1,900 | $0.55 | $255 |
Market Updates:
- Several FTX clients have requested a U.S. bankruptcy judge to prevent the defunct crypto exchange from valuing their Crypto deposits based on 2022 prices
- Spot Bitcoin ETFs topped $4.5 billion in volume on the first day of trading
- Crypto exchange Coinbase has partnered with Africa’s Yellow Card to expand access to its products to 20 African countries, focusing on increasing USD Coin stablecoin access
- A Solana-based maximum extractable value (MEV) bot managed to rake in a staggering $1.7 million from a single trade that occurred when a trader made a $9 million purchase of memecoin Dogwifhat (WIF)
