Today in Markets

BTC and ETH Reverse Fortunes

Crypto declines with Ethereum leading the way.
Jan 27, 20241 min read

Up and down. Crypto markets got off to a bloody start this week, with the total crypto market cap (TOTAL) declining 9%, but tokens have finished it off strong, paring back those weekly losses to just under 2%. How are different crypto sectors recovering?

While outflows from Grayscale’s Bitcoin Trust (GBTC) continue to mount, surpassing $4.7B this week with no clear end in sight, max pain may be in for Bitcoin holders – at least in relation to those of other tokens. Bitcoin dominance set a local bottom on January 14 and is up 1.3% on the week.

Bitcoin’s ability to outpace the gains of the broader crypto market this week is a potential indicator that over-bullish BTC ETF approval bets have been unwound by traders, an overhang that has suppressed BTC’s price in the weeks following the listing of these instruments.

Tragically, Bitcoin’s gain has been Ether’s loss; ETH/BTC has traded down for seven consecutive days, and its ETH ETF pivot-induced highs have crumbled. The ratio now finds itself down 10% from the week prior.

Solana has demonstrated slightly more resilience to BTC domination, with the SOL/BTC cross finishing the week flat. It seems SOL may have room to run, with the ecosystem filled with anticipation for the major ecosystem cash infusion set to occur on January 31 with the arrival of the Jupiter airdrop!

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here.

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