Official Launch of Bitcoin Spot ETF Leads to a Significant Decline in BTC, with ETH Taking Over the Stage
The three major indices saw little change in Friday’s closing, but all three indices showed gains for the week. The Dow Jones Industrial Average rose 0.34%, Nasdaq rose 3.09%, and the S&P 500 rose 1.84%.
In terms of cryptocurrencies, Bitcoin welcomed the first listing of a spot ETF on January 11th, but crypto concept stocks have been declining for two consecutive days, and Bitcoin itself has been declining all the way, reaching a low of 41,500 yesterday, seemingly confirming the saying “sell the news”. The market seems to have shifted its focus to the approval of an Ethereum spot ETF, with ETH performing the most impressively among the top ten market value cryptocurrencies.
Inflation data fluctuates. The official listing of the Bitcoin spot ETF led to a continuous decline in Bitcoin. Among the top ten cryptocurrencies, ETH has performed the most impressively.
Data released yesterday by the US Bureau of Labor Statistics showed that in December of last year, the Producer Price Index (PPI) increased by 1.0% year-on-year, lower than the expected 1.3%; it decreased by 0.1% month-on-month, lower than the expected +0.1%.
This is in contrast to the Consumer Price Index (CPI) announced on Thursday, which was slightly higher than expected. The CPI for December increased by 0.3% month-on-month and reached an annual increase of 3.4%, higher than the economists’ expected 3.2%.
According to the FedWatch data from CME, investors currently believe that the Federal Reserve is most likely to start cutting interest rates in March and may reduce the benchmark interest rate to 3.50-3.75% by the end of this year, with a rate cut of up to 7 basis points, far exceeding the 3 basis point space in the latest Federal Reserve dot plot.
Bitcoin welcomed the first listing of a spot ETF on January 11th, but crypto concept stocks such as Coinbase (COIN), MicroStrategy (MSTR), and Marathon Digital (MARA) have all declined for two consecutive days. Bitcoin itself has been declining all the way, reaching a low of 41,500, with a 24-hour decline of up to 7.7%. This seems to confirm the saying “sell the news”.
Meanwhile, among the top ten market value cryptocurrencies, ETH has performed the most impressively. After the official approval of the Bitcoin spot ETF, the market seems to have shifted its focus to the approval of an Ethereum spot ETF.
However, yesterday’s decline in BTC also led to a general decline in other currencies, and only ETH, DOT, and TRX maintained positive weekly gains among the top ten cryptocurrencies.
Statistical time: 1/13 10:00
BTC
ETH
Bitcoin spot ETF
