Crypto market updates at start 2024

Bitcoin stabilizes around $41k-$43k as ETF euphoria subsides

The highly anticipated approval of spot bitcoin ETFs last week initially sent bitcoin (BTC) prices soaring to $49k, but the excitement quickly dissipated, and prices retreated to $42k as investors digested the news and analyzed trading data from the first day of trading. Since then, BTC prices have remained relatively stable, consolidating within a tight range of $41k-$43k since last Friday.

Newly launched ETFs generate impressive trading volumes

The newly launched spot bitcoin ETFs saw a staggering trading volume of over $10 billion in the first three days. Simultaneously, net inflows of approximately 21,000 BTC (just under $900 million) were recorded. Blackrock iShares Bitcoin Trust (IBIT) led the pack with inflows of 16,362 BTC, while Grayscale’s Bitcoin Trust (GBTC) experienced outflows of around 25,000 BTC.

Ether maintains its dominance over bitcoin

Ether (ETH) has continued to gain ground against bitcoin since the approval of the first US-based spot bitcoin ETFs last week. This initial jump appears to be driven by a shift in investor focus away from bitcoin ETFs and towards the possibility of a spot ether ETF approval later this year. This sentiment was further fueled by Blackrock CEO Larry Fink’s comments in a recent interview, stating, “I see value in having an Ethereum ETF… these are just stepping stones towards tokenization.”

Solana expands its smartphone portfolio

Building on the success of its Saga smartphone, Solana has announced the launch of its “Chapter 2” device, available for pre-order starting at $450. While the official release date is still a year away, details regarding the hardware and design remain under wraps. Meanwhile, anticipation is growing around Jupiter’s JUP token, scheduled to launch on Solana at the end of the month.

Stock markets remain subdued amid uncertain interest rate outlook

US stock indices held steady this week as market participants adjusted their expectations for the timing of a potential interest rate cut by the Federal Reserve. Recent retail data, showing a sharp acceleration in December spending, cast doubts on how early such a move could materialize. The market currently prices in a ~52% chance of a rate cut in March, down from 70% a week ago.