The latest moves in crypto markets, in context By Lyllah Ledesma, CoinDesk news reporter Was this newsletter forwarded to you? Sign up here. |
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Happy Wednesday! Here’s what you need to know today in crypto: |
- Bitcoin pushed past $51,000, taking its market cap to $1 trillion for the first time since December 2021.
- Crypto stocks also gained on Wednesday, with mining companies surging.
- Three crypto companies made it to Forbes’ annual fintech list.
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CoinDesk 20 Index: 1,920 +2.4%
Bitcoin (BTC): $51,480 +3.0%
Ether (ETC): $2,749 +2.4%
S&P 500: 4,953.17 −1.4%
Gold: $2,005 +0.6%
Nikkei 225: $2,005 +0.6% |
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GBTC is now an ETF. Grayscale Bitcoin Trust ETF was first created in 2013 as the original Bitcoin fund helping investors gain secure and familiar access to Bitcoin. Today, GBTC is the world’s largest Bitcoin ETF with $26.6B in AUM as of 1/11/24, offering even more investors with convenient exposure to the world’s most popular cryptocurrency. Bitcoin investing begins with GBTC. Find ticker: GBTC in your brokerage account or ask your financial advisor today. Grayscale Bitcoin Trust (BTC) (the “Trust”) has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Trust has filed with the SEC for more complete information about the Trust and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Trust or any authorized participant will arrange to send you the prospectus (when available) if you request it by calling (833) 903 - 2211 or by contacting Foreside Fund Services, LLC, Three Canal Plaza, Suite 100, Portland, Maine 04101. Foreside Fund Services, LLC is the Marketing Agent for the Trust. An investment in the Trust involves risks, including possible loss of principal. The Trust holds Bitcoin; however, an investment in the Trust is not a direct investment in Bitcoin. Extreme volatility of trading prices that many digital assets, including Bitcoin, have experienced in recent periods and may continue to experience, could have a material adverse effect on the value of GBTC and the shares could lose all or substantially all of their value. |
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The bitcoin (BTC) price climbed through $51,000 in European morning hours on Wednesday, touching $1 trillion market capitalization for the first time since December 2021. The rise came as bullish sentiment around continued growth of the largest cryptocurrency continued, with options traders betting on prices to touch as much as $75,000 in the coming months. BlackRock’s IBIT exchange-traded fund (ETF) saw nearly $500 million in net inflows on Tuesday, also indicative of buying demand. Excluding Grayscale's Bitcoin Trust (GBTC), the ETFs have accumulated over $11 billion worth of the largest cryptocurrency by market cap. Outflows from GBTC appear to have gradually eased, reducing selling pressure according to some analysts and buoying bullish sentiment. |
BTC's Market Cap (CoinMarketCap) |
U.S.-listed crypto companies also rose on Wednesday. Cryptocurrency exchange Coinbase (COIN) climbed more than 7%, and software company MicroStrategy (MSTR), which holds around 190,000 BTC on its balance sheet, gained about 6.5%. BlackRock’s bitcoin exchange-traded fund (IBIT) added around 3%. Robinhood (HOOD), a trading platform that supports cryptocurrencies, advanced 12% after reporting higher-than-forecast fourth-quarter revenue and saying crypto revenue rose 10% from a year earlier to $43 million. Iris Energy (IREN) led gains among miners, surging 14%. Marathon Digital (MARA) added 11% and Riot Platforms (RIOT) 8%. Only three cryptocurrency firms made Forbes' annual list of 50 innovative fintech companies: Chainalysis, Fireblocks and Gauntlet. To qualify for consideration, companies had to be privately owned and based in the U.S. Chainalyis is a blockchain analytics firm that specializes in examining and tracking crypto transactions. The New York-based company, which has raised $535 million and was valued at $8.6 billion in May 2022 according to Forbes, cut 15% of its workforce in October , adding to a 5% cut in February 2023. Fireblocks, also based in New York, specializes in crypto safekeeping technologies such as multiparty computation (MPC) and services big bank clients including HSBC, BNY Mellon and BNP Paribas. Gauntlet is a financial risk modeling and simulation platform. |
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Market Insight: BTC Futures Open Interest Tops $21B |
The notional open interest, or the dollar value locked in the number of open or active bitcoin (BTC) futures contracts, has risen to a 26-month high, according to CoinGlass. As of writing, open interest in perpetuals and standard futures stood at over $21 billion, with bitcoin trading at $49,570 in the spot market. The open interest tally has increased 22% this year, nearing the record $24 billion seen in mid-November 2021, when bitcoin traded above $65,000. The renewed interest in leveraged products like futures alongside a price rise represents an influx of new money on the bullish side and confirms the uptrend. Bitcoin has rallied 28% in just over three weeks, mainly due to strong inflows into the recently launched spot ETFs in the U.S. |
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- The chart shows bitcoin's price action since late 2021.
- The price has crossed above resistance from the March 2022 high.
- The breakout means prices could soon rise to $57,000, according to 10x Research.
- Source: TradingView
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Grayscale is the world’s largest crypto asset manager*. We enable investors to access the digital economy through a family of regulated and future-forward investment products. Our decade-long track record and deep expertise as a crypto-specialist means that investors, advisors, and allocators turn to us for both investment insights and innovative products. Crypto investing begins with Grayscale. *By AUM as of 1/16/24. Investing involves risk and possible loss of principal. |
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Disclaimer : The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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