Bloomberg has reported a slowdown in the inflow of funds into the Bitcoin spot ETF, partially attributed to a decrease in investor interest following a drop in Coinbase’s investment appeal. Despite this, the approval of the Bitcoin Spot ETF is considered a historic success.
FTX and Alameda Research have successfully sold off more than two-thirds of their Grayscale Bitcoin Trust (GBTC) shares, which they previously held when it was still a trust fund. This move has garnered them a minimum funding amount of $600 million.
Blackrock’s IBIT Spot Bitcoin ETF has reached a market value of $2 billion, just two weeks after receiving its approval. Blackrock and Fidelity collectively manage over 90% of the market share in Bitcoin ETFs.
Franklin Templeton, one of the fund management companies overseeing Bitcoin ETFs, mentions that independent financial advisory groups need time to help their clients understand Bitcoin ETFs as investments. Currently, Franklin Templeton’s ETF has a market value of $100 million.
ARK Invest has sold shares in its Bitcoin Futures ETF and redirected the funds to purchase 2.22 million shares of its own Spot Bitcoin ETF since January 19, amounting to approximately $42.8 million. However, ARK Invest’s market share in its Spot Bitcoin ETF remains lower compared to its competitors.
James Seyffart, an analyst at Bloomberg Intelligence, predicts a 60% chance of the Spot Ethereum ETF receiving approval from the U.S. SEC in May. The groups expected to hear their decisions during this time frame include Ark/21Shares and VanEck.
The U.S. SEC has postponed its decision on approving BlackRock’s Spot Ethereum ETF to March 10, allowing more time to consider additional data. The final deadline for the decision is now set for May.
Glassnode has released an On-Chain report revealing ETH’s returns compared to BTC, which has been on an upward trend since the approval of the Bitcoin ETF, standing at 20%. Meanwhile, Ethereum’s market share has increased by 2.9%, indicating growing investor interest.
CryptoQuant has revealed that there is still no indication of a bottom price for Bitcoin until the unrealized profit margins for short-term holders reach -10%. Last week, these margins were at +16%. It is predicted that market prices may range between $39,000 and $37,000.
Weekly Technical Analysis: 30 January – 5 February 2024
BTC is recovering after a previous significant decline. In the short term, it’s testing resistance at 1,546,077 THB. If it surpasses this level, the next resistance to test would be at 1,598,962.50 THB. However, failure to pass might lead to retesting the previous low point at 1,350,235 THB. The trend is likely to remain sideways for the foreseeable future
Support 1,440,000 THB Resistance : 1,600,000 THB
ETH is still stagnant after a significant downturn last week. In the short term, attention should be focused on the lowest point of around 74,641.35 THB. If it holds, there could be an upward test towards the resistance at 88,850 THB. A successful breach might target a retest of the previous high around 95,987.70 THB next
Support : 78,000 THB Resistance : 85,000 THB
SUI Token (SUI)
SUI has surged by 35.97% in the past week, indicating a gradual recovery towards an upward trend. A viable strategy would be to consider “buy on dip” or purchasing during pullbacks. The initial support to watch for is at the 46 THB level. Maintaining this level could lead to a resistance-turned-profit-taking level at 54 THB
Support : 46 THB Resistance : 54 THB
AVAX has surged by 11.84% in the past week, indicating a potential upward recovery trend. Initially, there might be short-term resistance at 1300 THB. If surpassed, the next resistance level is at 1400 THB. Conversely, if unable to break through, there’s support at 1175 THB, and a breach of this level might shift the trend downward.
Support : 1175 THB Resistance : 1400 THB
Trading and Investment Considerations For The Week
The key highlight of this week is the Federal Reserve announcement on Thursday, January 31st, regarding monetary policy. While interest rates may remain unchanged, markets anticipate that the first rate cut may be delayed, causing the dollar to strengthen and putting pressure on other assets. Investors should closely watch the guidance provided by the Fed Chairman regarding monetary policy.
On Friday, February 2nd, non-farm payroll numbers will be released, with the market expecting around 177,000 positions, down from 216,000 positions last month. If the figures come in lower than expected, it could have a positive impact on the crypto market.
This week also sees the fourth-quarter earnings announcements from major tech companies including Apple, Meta, Microsoft, Amazon, and Alphabet. The response to these earnings will affect the US stock market as these five stocks have significant weight in both the Nasdaq and S&P500 indices, indirectly impacting the crypto market.
The market is also watching for any significant selling pressure on Bitcoin from the Grayscale Bitcoin Trust (GBTC). However, the recent heavy selling pressure from FTX may have eased. It is expected that the trend will continue sideways, leading to altcoins being traded for profit during this week.
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