Daily News | Market Sentiment Turned Neutral; ETFs Buying 30K BTCs in Two Trading Days; Celsius Redeemed Over $125 Million in ETH to the Exchange

2024-01-16, 04:04

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## Crypto Daily Digest: Sentiment in the crypto market turned "neutral,” Celsius redeemed over $125 million in ETH in the past week
According to the crypto fear and greed index of tracking company Alternative. me, after nearly three months of "greed" phase, the current sentiment in the crypto market turned to "neutral" on Monday.

It is reported that the current score of the index is 52 points, with a range of 0 to 100 indicating "neutrality," a level close to zero indicating "extreme fear," and a level close to 100 indicating "extreme greed." The indicator has been in a "greedy" zone since October 24th last year and reached a high of 76 points on January 9th in anticipation of US approval of spot <a href="/fr/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs.

According to the analysis of 10x Research on the price pattern and technical indicators of Bitcoin, the selling may continue in the short term. In a report to clients on Monday, it stated that "Bitcoin's RSI divergence signal is a correction," and added that the pullback may lose momentum near the dynamic support level of $38,000. It is reported that when prices reach a new extreme and momentum indicators such as the Relative Strength Index (RSI) are not reached, there will be a bearish divergence, indicating that the upward space has been exhausted.

According to CC15 Capital's statistics on the number of Bitcoins held by US spot Bitcoin ETFs (excluding GBTC), within the two trading days ending on January 12, 2024, 10 newly approved Bitcoin spot ETFs purchased nearly 30,000 Bitcoins.

Larry Fink, CEO of BlackRock, currently the largest Bitcoin spot ETF underwriter, saw a significant shift in his attitude towards Bitcoin in an interview with Fox Business, stating that Bitcoin is "bigger than any government." Fink pointed out that if people are concerned about government instability or economic manipulation, Bitcoin can serve as a means of long-term storage of value. This is in stark contrast to his views in 2017, when he and J.P. Morgan CEO Damon criticized Bitcoin, and Fink even referred to it as an "indicator of money laundering."

A report released by CoinGecko shows that since 2014, out of over 24000 cryptocurrencies listed on the platform, 14039 cryptocurrencies have died, accounting for over 50%. The report points out that the majority of dead cryptocurrencies occurred during the bull market period from 2020 to 2021, during which a total of 7530 cryptocurrencies disappeared, accounting for 53.6% of all dead cryptocurrencies.

During the previous bull market, approximately 70% of the over 11,000 cryptocurrencies listed on CoinGecko have ceased operations. In addition, the 289 cryptocurrencies listed on CoinGecko in 2023 have also failed, but this proportion is less than 10%. The total number of cryptocurrencies listed in 2023 exceeds 4,000, a decrease compared to previous years.

According to The Block data, the share of USDT stablecoin issuer <a href="/fr/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> in the global stablecoin supply increased from 50% to 71% in 2023. In addition, the company recently has over 95 billion stablecoins in circulation, which is larger than the gross domestic product (GDP) of countries such as Guatemala and Bulgaria. Its current largest competitor, Circle, has a circulation of only 27 billion USDCs, compared to over 48 billion at the beginning of 2023.

The highly anticipated ZK Layer2 platform Manta Network has released its token economy model for its native token $MANTA$ The total supply of MANTA is 1 billion, with an annual increase of 2%. The initial circulation is 251 million MANTA (25.1% of the maximum token supply). This token is used for governance voting, staking, trading fees, liquidity, and collateral in the Manta Pacific and Manta Atlantic networks.

Manta Pacific provides a low-cost on-chain activity environment, while Manta Atlantic introduces programmable secure on chain identities and credentials$ MANTA aims to create value through on chain activities and transactions, supporting token holders, builders, and users. The initial issuance plan includes airdrops, public sales, private rounds, and strategic investors.

According to insiders cited by CoinDesk, <a href="/fr/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> Mobile plans to launch a second smartphone, which will have the same basic features as the previous phone called Saga: a built-in crypto wallet, customized Android software, and a "dApp store" for crypto applications, but at a lower price and with different hardware. When it was first launched last year, the price of this phone was $1000, but later due to sales difficulties, the price decreased.

At that time, supporters of Saga were preparing to abandon the experimental Solana Mobile phone, but when crypto traders realized that the distribution of BONK tokens attached to the phone exceeded its price, the situation changed instantly and Saga phones were sold out in less than a week. Afterwards, Kyle Samani, co-founder of Multicoin, also stated that Solana and Solana mobile phone users will receive a large number of airdrops within the next year.

According to Cointelgraph, Arkham Intelligence data shows that in the process of planning to repay creditors, struggling crypto lending institution Celsius transferred over $125 million worth of ETH to crypto exchanges in the past week (January 8-12), with Celsius transferring $95.5 million worth of ETH to Coinbase and $29.7 million worth of ETH to FalconX.

This led to the redemption of approximately $1.6 billion in staked ETH last week, the largest redemption since Shanghai's upgrade, with 85% of the redemption being dominated by Segment and Celsius.

However, Celsius still holds over 550,000 ETHs on its books, with a value of up to $1.36 billion at the time of publication.

Other data changes have seen the TVL of the <a href="/fr/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Layer 2 network Metis reach $1 billion, with a rise of 51.93% in the past seven days, reaching a new historical high, second only to Orbitrum One ($11 billion) and OP Mainnet ($6.06 billion), ranking third in Ethereum L2 lock-up volume.

## Macro: Gold stabilizes at the 2050 level, will the Fed cut interest rates more than three times this year?
On Monday, the US dollar index continued to rise slightly, reaching an intraday high of 102.67 and ultimately closing 0.15% higher at 102.59.

Due to the holiday, spot gold trading was light, stable above the 2050 level, and ultimately closed up 0.27% at $2054.75 per ounce. Spot silver ultimately closed up 0.12% at $23.22 per ounce.

Despite the increasingly tense situation in the Middle East, international crude oil still slightly declined. WTI crude oil fell to an intraday low of $71.21 in trading, then regained some lost ground and ultimately closed down 0.42% at $72.44 per barrel; Brent crude oil closed down 0.09% at $78.28 per barrel.

Impacted by Martin Luther King's holiday, US stocks and bonds are closed for one day.

Recently, billionaire investor Bill Ackerman predicted that the Federal Reserve will have to cut interest rates as early as 2024, which seems to confirm market expectations for loose monetary policy.

He said, "Currently, with inflation significantly cooling down, the actual cost of money is very high. So I think they must act early, and of course, the Federal Reserve may cut interest rates more than three times."

After the policy meeting in December last year, Federal Reserve officials stated that they may implement three rate cuts this year, each by 25 basis points, followed by multiple rate cuts in the coming years to bring short-term interest rates to a neutral level.

However, the market has already digested a more aggressive expectation of interest rate cuts. According to the Federal Reserve observation tool of the Chicago Mercantile Exchange, traders in the federal funds and futures market expect the Federal Reserve to cut interest rates six times this year, with an 83% chance of the first rate cut occurring in March.

However, there is still controversy on Wall Street regarding the accuracy of this viewpoint. Federal Reserve officials also expressed opposition to the market's forward-looking expectations. FOMC Voting Committee and Atlanta Chairman Bostek said that if policymakers cut interest rates too early, inflation may fluctuate up and down like a seesaw. He warned that the rate of decline in inflation towards the Federal Reserve's 2% target may slow down in the coming months.

Cleveland Fed Chairman Mester said it is too early to consider lowering interest rates at the March meeting, emphasizing that new inflation data indicates that decision-makers still have more work to do.

Richmond Fed Chairman Barkin also reiterated that he is still searching for more evidence to prove that inflation is moving towards the target, and he pointed out that the results of the CPI report are "basically in line with expectations".

"What I am seeking is a firm belief in the return to inflation targets," Balgin told reporters after an event in Richmond. Regarding the issue of interest rate cuts in March, Balgin stated that he does not want to make a "pre judgment" decision.

Chicago Fed Chairman Goolsby also agrees with this view, stating in an interview that it is still too early to decide on March.

Although there is some disagreement on the timing of the Fed's interest rate cut, both Ackerman and Fink suggest that the Fed's loose policy should be beneficial to US stocks. Ackermann believes that as long as interest rates are lowered quickly enough to avoid a severe recession, it would be beneficial for the stock market.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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