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Jan 2023

Week with significant rise in prices draws attention

by Hashdex Research
Jan 09, 2023

Week with significant rise in prices draws attention

The NCI closed Sunday (01/08) up 3.2% compared to last week, with the two main assets in the market—namely bitcoin (BTC) and ether(ETH)—rising 2.0% and 5.3%, respectively. Many crypto assets significantly outperformed BTC and ETH, displaying gains of over 10% to 20% for some tokens.

 

The crypto market started 2023 with low volatility, with bitcoin still trading in the $16,000-$17,000 range in a relatively uneventful start of the year. 

Both BTC and ETH had upward price trajectories throughout the week, especially on Thursday. Such movement might’ve been due to US job market data showing a slight slowdown in activity and, therefore, demonstrating that the Fed’s hawkish policies are taking effect.

For this week, investors should keep an eye on macro data that may foreshadow the Fed's stance going forward. On Tuesday, Fed Chair Jerome Powell will speak at a symposium organized by the central bank of Sweden. Investors will be paying attention to his tone to gather clues about Fed policy for 2023 and will be watching how inflation behaves in a scenario of interest rates already well above historical averages.

In addition to macroeconomic data, investors will also be keeping an eye on new events involving the Digital Currency Group (DCG) and its subsidiaries in the wake of the open letter sent by Gemini’s co-founder Cameron Winklevoss to the CEO of Genesis (which belongs to the DCG group), demanding action over its blocked assets on Genesis’ platform and heavily criticizing his conduct over the matter. This week, Genesis announced the dismissal of approximately 30% of its workforce. Investors will also be following the case of the exchange Huobi, which has been suffering withdrawals and a significant drop in trading volume.

 

Bitcoin Retakes $17K as Interest Rates Plunge Following Economic Reports

https://www.coindesk.com/business/2023/01/06/bitcoin-retakes-17k-as-interest-rates-plunge-following-economic-reports/

 

Cameron Winklevoss pens open letter to Barry Silbert about Gemini’s blocked funds

https://cointelegraph.com/news/cameron-winklevoss-pens-open-letter-to-barry-silbert-about-gemini-s-blocked-funds

 

Huobi's HT Token Turbulent as Exchange Confirms 20% Headcount Reduction

 

https://www.coindesk.com/markets/2023/01/06/huobi-exchange-token-down-11-on-reports-of-layoffs-internal-strife-at-company/?utm_source=substack&utm_medium=email

 

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