Bitcoin (BTC), the most popular cryptocurrency in the world, appears to have lost its impetus during the holiday season of 2023. When writing, the CoinMarketCap Fear & Greed Index stood at ‘Neutral’ (56 out of 100), marking a notable dip from ‘Greed’ last week. It’s primarily expected now that the excitement around BTC spot exchange-traded funds (ETFs) has fizzled out, and Bitcoin and other top coins are expected to trade sideways in the coming days.
Before we proceed further, readers should note that the overall crypto market and coin prices are highly volatile. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios, the most significant events that have already taken place, and some upcoming occurrences that are worth noting. Investors are advised to do their research before taking any calls.
Crypto Prices Over The Past Week
Last Monday (January 15), the crypto market cap stood at $1.68 trillion. BTC price stood at around $42,500; ETH price at around $2,500.
A week later, the overall market cap dipped to $1.62 trillion.
DeFi’s total volume is $4.1 billion, at 11.11 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume is $32.46 billion, at 11.11 percent of the total 24-hour market volume. As per CoinMarketCap, the general market fear and greed index stood at ‘Natural’ with 56 points (out of 100), marking a gradual decline over the past week.
BTC dominance, at the time of writing, stood at 49.77 percent.
Over the past seven days, Bitcoin achieved a high of $43,515.41 (on January 17) and a low of $40,360.97 (on January 19).
On the other hand, Ethereum saw a high of $2,478.82 (January 21) and a low of $2,413.33 (January 22).
Crypto Events To Note
Global investment bank JPMorgan has raised concerns about the potential for increased capital outflow from Grayscale’s Bitcoin fund, emphasizing that this could exert additional downward pressure on Bitcoin prices in the weeks ahead. The bank’s expert analyst highlighted a notable development involving a $3 billion influx into newly introduced spot Bitcoin exchange-traded funds (ETFs), characterizing it as indicative of a shift from existing Bitcoin investment instruments or a trend where retail investors are transitioning from digital wallets held with exchanges/retail brokers to more cost-effective spot Bitcoin ETFs.
JPMorgan’s Bitcoin price prognosticator, Nikolaos Panigirtzoglou, communicated his insights into Bitcoin’s market dynamics via a LinkedIn post on Friday. Specifically, he delved into the repercussions of the recent launches of spot Bitcoin exchange-traded funds (ETFs) and the ensuing capital outflows from Grayscale’s Bitcoin fund. Following approval from the US Securities and Exchange Commission (SEC) on January 10, Grayscale transformed its Bitcoin Trust (GBTC) into a spot Bitcoin ETF alongside ten other approved funds.
Additionally, in a recent report titled “Evaluating the Shift: Global Perspectives on Currency Dynamics,” Morgan Stanley has raised concerns regarding the potential waning dominance of the US dollar. The investment bank points to an increasing interest in digital assets, explicitly focusing on Bitcoin, contributing to this shift. The report emphasizes the ongoing scrutiny of the US dollar’s supremacy. It highlights a discernible trend towards diminishing reliance on the dollar, coinciding with a rising interest in digital currencies such as stablecoins and central bank digital currencies (CBDCs).
Authored by Andrew Peel, the Executive Director and Head of Digital Asset Markets at Morgan Stanley, the report delves into reconsidering the US dollar’s role as the linchpin of the international financial system. Peel notes that this reevaluation is influenced by evolving geopolitical dynamics and the expanding twin deficits within the United States. The investment bank suggests an apparent movement away from dollar-centric dependence is underway, sparking heightened curiosity and investment in various digital currency alternatives.
Lastly, in a bit of crypto-positive news, In a recent report by Will Ogden Moore, Grayscale Investments sheds light on the transformative alliance between artificial intelligence (AI) and cryptocurrency, signaling a new epoch of technological progress. The report underscores the remarkable success of AI-associated crypto assets, pushing the boundaries of blockchain applications beyond conventional payment frameworks.
Highlighting the broader implications, Grayscale’s research report accentuates the capacity of this convergence to tackle upcoming societal challenges related to AI, including apprehensions about data privacy and the concentration of power. Moore, the researcher at Grayscale Investments, points out that cryptocurrencies linked to AI have exhibited substantial growth, surpassing the performance of traditional sectors within the crypto landscape.
What Crypto Traders Are Saying About Current Market Scenario
Mudrex co-founder and CEO Edul Patel told ABP Live, “Bitcoin found stability at $41,000 during the weekend, witnessing an intense clash between bullish and bearish forces competing for dominance in the market. Despite the persistent struggle, BTC stands firm above the $40,000 threshold, indicating the likelihood of a sideways trend ranging between $41,000 and $42,000 in the coming week. On the Ethereum front, the current valuation rests at $2,400. However, if bulls fail to regain control above the $2,500 zone, there is a potential for Ethereum to experience a decline, possibly reaching $2,400 within the upcoming week.”