Ahead of the Curve - January 24

Bitcoin remains strong and has seen an 8% upside this week after a strong push after U.S. market hours on Friday. Institutional traders have returned to the market as CME's market share grows while offshore shorts bleed.

Bitcoin remains strong and has seen an 8% upside this week after a strong push after U.S. market hours on Friday. This is the second consecutive late Friday push in BTC, and these bursts of strength after the closing bell in traditional markets are highly unusual.

Apart from the Friday strength, BTC has predominantly traded in low volatility in the past week while experiencing a setback after the U.S. PPI release came in surprisingly low at -0.5%. This marks the first negative market reaction to a deflationary economic release, and it could indicate that the macro sentiment is gradually changing from concerns related to inflation to concerns related to a potential recession. We expect correlations between BTC and U.S. equities to grow in the coming weeks. As we approach the February 1 FOMC meeting, we expect the relevancy of U.S. markets to increase. Meanwhile, we expect Asian hours to have a less pronounced impact due to the current Lunar New Year.

We cover the growing institutional presence and Genesis' chapter 11 in this week's edition of "Ahead of the Curve".

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