Synopsis
- Bitcoin bulls going after the $45k?
- UAE initiates cross-border payment using the Digital Dirham
- Increase of USDT in exchanges, reflecting market optimism
- Biggest gainer and loser of the week
Key Observations
Analysis
What’s happening on the ETF front?
Figure 1: Bitcoin prepares to reclaim $45,000
The market has seen bulls lead a Bitcoin rally to reclaim $45k which is a stark contrast from last week’s Grayscale dump. It has also come to light that Fidelity’s spot Bitcoin ETF has witnessed an incredible $208 million in daily inflows on January 29, 2024. This has passed Grayscale’s outflow for the first time since launch. JPMorgan analysts suggest that the worst may be over regarding GBTC-related outflows, providing some relief to Bitcoin investors.
The growing competition in the market for spot Bitcoin ETFs has prompted institutions to reduce fees to attract inflow. Invesco slashed fees on its Europe-based Bitcoin ETF to 0.39% on January 23, 2024. WisdomTree and CoinShares are some of the other fund issuers to follow suit by cutting fees.
UAE makes a cross-border payment using Digital Dirham
In a revolutionary move, the UAE has initiated a cross-border payment using Digital Dirham to China. This transaction involved a sum of AED 500,000,000 transferred to China and was executed by Mansour Bin Zayed Al Nahyan, the Chairman of the Central Bank. This operation was facilitated through the ‘M Bridge’ platform, which is powered by Ripple’s XRP technology, hinting at the key role Ripple will go on to play in enhancing the efficiency of international financial transactions.
Sheikh Mansour’s initiative reflects the UAE’s strategic vision to position itself as a pivotal global financial hub. The adoption and implementation of the Digital Dirham and doing away with USD as a global currency aligns with the broader goals of ensuring financial stability by playing to the strengths of its financial system. There is a larger goal to catalyze economic growth, which could propel the nation’s comprehensive development.
Market optimism as USDT volume on the rise?
Figure 3: The increase in USDT supply on exchanges hints at renewed optimism
Data from Santiment indicates a shift in the cryptocurrency market dynamics. Cryptocurrencies such as Bitcoin and Ethereum witnessing a decline on exchange platforms, whereas there is an increase in the exchange supply of USDT with a 4% rise over the last five weeks. This means that 30% of all USDT in circulation is now held on trading platforms.
The increasing accumulation of USDT on exchanges can be interpreted as an indication of strong buying potential. Additionally, the crypto community is anticipating the upcoming Bitcoin halving event, as investors and analysts speculate that it could amplify the current bull cycle. Investors and analysts are keeping a close eye on supply changes to predict upcoming market trends.
Biggest gainer of the week: Sui (SUI) up by 52.26%
Opinions:
Technical Analysis:
SUI has seen a huge increase in buy volume which has reflected the price growth of over 50% in 7 days. There should be a correction before SUI continues its journey up with the support level at 1.46 looking increasingly likely to be tested. If that fails to hold, we could see SUI testing levels of 1.40 as well.
Oscillator indicators: 1 bearish, 8 neutral, 2 bullish
Moving Average indicators: 0 bearish, 1 neutral, 14 bullish
Biggest loser of the week: Mantle (MNT) down by 4%
Opinions:
Technical Analysis:
MNT has seen a decline recently owing to the selling pressure. There has been a drop of over 4% in the price over the last 7 days. We anticipate that the resistance level of 0.60 shall be tested if current levels fail to hold. There is a possibility that the price shall drop even further to 0.58 before finding support.
Oscillator indicators: 2 bearish, 9 neutral, 0 bullish
Moving Average indicators: 10 bearish, 1 neutral, 2 bullish
Conclusion
The cryptocurrency market was marked with important events. Bitcoin looks prepared to reclaim $45k as institutions are in a fee war. Exchanges witness an increase in USDT, igniting optimism across the markets.UAE uses XRP to send Digital Dirham to China which potentially flags off cross-border payments using crypto.
