Good morning. Here’s what’s happening:Market moves: Bitcoin ended a bad January on a positive note; DeFi trading volume grew steadily.Technician's tak
Good morning. Here’s what’s happening:
Market moves: Bitcoin ended a bad January on a positive note; DeFi trading volume grew steadily.
Technician’s take: BTC’s January sell-off could attract short-term buyers.
Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis.
Prices
Bitcoin (BTC): $38.446 +1%
Ether (ETH): $2,682 +2.6%
Top Gainers
| Asset | Ticker | Returns | Sector |
|---|---|---|---|
| Chainlink | LINK | +7.2% | Computing |
Top Losers
| Asset | Ticker | Returns | Sector |
|---|---|---|---|
| Cosmos | ATOM | −7.8% | Smart Contract Platform |
| Polygon | MATIC | −7.1% | Smart Contract Platform |
| Internet Computer | ICP | −5.7% | Computing |
Markets
S&P 500: 4,515 +1.8%
DJIA: 35,131 +1.1%
Nasdaq: 14,239 +3.4%
Gold: $1,797 +0.4%
Market moves
Bitcoin ended the last day of a bearish January in the green, while the overall trading volume on decentralized exchanges (DEXs) closed with nearly $100 billion in trading volume for the month.
At the time of publication, the oldest cryptocurrency was changing hands at about $38,500, up slightly over the past 24 hours, according to CoinDesk data. Ether, the second biggest cryptocurrency by market capitalization, was up 2.7% to over $2,600 in the same time period.
“Bitcoin is rallying as risky assets finish a very bad January on a positive note,” Edward Moya, senior market analyst at Oanda, the Americas, wrote in his daily market update. “Bitcoin bullish momentum is slowly building up and it could surprise to the upside if the dollar continues to weaken as much of the Fed tightening for the year begins to get priced in.”
Data compiled by CoinDesk shows that bitcoin’s trading volume across major crypto exchanges was significantly lower than a week ago. Many stock indexes in Asia were closed amid the weeklong lunar New Year (also known as Chinese New Year) holidays. Many crypto traders in the region may also have taken time off.
Meanwhile, decentralized exchanges reported nearly $100 billion in trading volume in January, according to Dune Analytics. The total trading volume in DEXs previously dropped significantly following its peak last May. But the high volume has returned in recent months.
Some of January’s volume may be associated with the volatility of the markets and the drama in decentralized finance protocol Wonderland, and yet one analyst said the steadily growing volume shows a “renewed growth” in the DeFi sector.
“The flawless execution without downtime, or the amazing ability for these protocols to run uninterrupted even amidst drama from founders/developers and declining asset prices…should be the focus,” Jeff Dorman, chief investment officer at crypto investment managing firm Arca, wrote in his blog dated Monday. “There is a thriving underlying ecosystem despite one-off scams, hacks, and ousted bad actors.”
Technician’s take
Bitcoin Holding Support Above $37K; Resistance at $40K-$45K
Bitcoin was rising toward the top of a weeklong trading range as oversold signals remain intact. Oversold refers to investors believing the asset is trading below its true value. BTC was trading at about $38,500 at press time and is up 4% over the past week.
Initial resistance is seen at $40,000, which is an old support level that was rejected on Jan. 20. Buyers will need to make a decisive move above $40,000-$45,000 in order to reverse the downtrend that has been in place since November.
For now, BTC’s 20% price decline in January could attract short-term buyers. Traders could place additional bids heading into the Asia trading day if support at $37,000 holds.
Over the long term, upside appears limited given negative momentum signals.
Important events
8:30 a.m. HKT/SGT (12:30 a.m. UTC): Jibun Bank (Japan) manufacturing PMI (Jan.)
8:30 a.m. HKT/SGT (12:30 a.m. UTC): Australia home loans (Dec.)
8:30 a.m. HKT/SGT (12:30 a.m. UTC): Australia investment lending for homes (Dec.)
3 p.m. HKT/SGT (7 a.m. UTC): Germany retail sales (Dec. MoM/YoY)
5:30 p.m. HKT/SGT (9:30 a.m. UTC): U.K. consumer credit
CoinDesk TV
In case you missed it, here is the most recent episode of “First Mover” on CoinDesk TV:
Bitcoin’s 15th Bear Market Since Its Creation in 2009, Arca Study Finds Most Investors Believe Traditional Securities Will Be Digitized in 5-10 Years
“First Mover” hosts speak to Arca co-founder and CEO Rayne Steinberg as the firm releases a study revealing the top trends in digital assets. Taiwan-based XREX wants to bridge the world using stablecoins. Co-founder Wayne Huang shares the state of crypto in Taiwan. TR Lab co-founder Xin Li-Cohen shares details for the $4.2 million fundraising round from leading art and tech investors and his views on the NFT (non-fungible token) market.
Headlines
FTX Reaches $32B Valuation With $400M Fundraise: The investment values the crypto exchange at the same level as Deutsche Boerse and more than Nasdaq or…
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