The three major indexes closed relatively unchanged on Friday, but all three indexes showed gains for the week. The Dow Jones Industrial Average rose 0.34%, the Nasdaq rose 3.09%, and the S&P 500 rose 1.84%. As for cryptocurrencies, Bitcoin welcomed the listing of its spot ETF on January 11, but crypto concept stocks experienced consecutive declines for two days. Bitcoin itself also fell steadily yesterday, reaching a low of 41,500, 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 cryptocurrencies by market capitalization.
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Fluctuating Inflation Data
Bitcoin Spot ETF Officially Listed, Bitcoin Falls Steadily
ETH Performs Most Impressively Among the Top Ten Cryptocurrencies
Data released yesterday by the US Bureau of Labor Statistics showed that the Producer Price Index (PPI) for December last year 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. The CPI for December slightly exceeded expectations with a monthly increase of 0.3% and a year-on-year increase of 3.4%, higher than the economists’ expected 3.2%.
According to the FedWatch data from CME Group, investors currently believe that the Federal Reserve is most likely to initiate interest rate cuts in March and has the opportunity to lower 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 points space on the latest Federal Reserve dot plot.
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Federal Reserve Keeps Rates Unchanged, Possible Three Interest Rate Cuts Next Year, US Stocks Soar, BTC Approaching 43K
)
Bitcoin welcomed the listing of its spot ETF on January 11, but crypto concept stocks such as Coinbase (COIN), MicroStrategy (MSTR), and mining company Marathon Digital (MARA) all experienced consecutive declines for two days. Bitcoin itself fell steadily yesterday, 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.”
The top ten cryptocurrencies by market capitalization performed most impressively with Ethereum 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.
(
Focus Shifts to ETH? Analysts Optimistic about Approval of “Ethereum Spot ETF” in May this Year
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However, the decline of BTC yesterday also led to a general decline in other currencies, with only ETH, DOT, and TRX maintaining positive weekly gains among the top ten cryptocurrencies.
Data as of 1/13 10:00
BTC
ETH
Bitcoin Spot ETF
Further Reading
SEC Chairman’s Comments on Bitcoin ETF: Centralized ETF Satirizes Satoshi Nakamoto’s Decentralization Vision
Reddit AMA | Vitalik Buterin Calls for Increasing Gas Limit to Improve Throughput