🚀 First Mover: America’s Bitcoin Tops $45K for the First Time in 21 Months 🚀

Exploring the Recent Price Changes in Cryptocurrency Markets on January 5, 2024

Crypto ETPs in the Americas received a whopping $2.2 billion investment in 2023.

This article originally appeared in First Mover, Blocking.net’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

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Investors Pour $2 Billion into Digital-Asset Investment ETPs

Investors are bullish on digital assets, pouring over $2 billion into digital-asset investment exchange-traded products (ETPs) in 2023. This makes it the third-largest year for net inflows since 2017. CoinShares’ data reveals that inflows more than doubled compared to 2022, with most of the money hitting in the final quarter. According to James Butterfill, from CoinShares, this surge in investment came as it became “increasingly clear that the SEC was warming up to the launch of bitcoin spot-based ETFs in the United States.” The final week of 2023 alone saw $243 million of net inflows into digital asset ETPs.

Ether’s Price Boost Expected as Celsius Unstakes Thousands of ETH

Ether (ETH) prices might gain momentum in the coming weeks after crypto lender Celsius announced that it will unstake its holdings of the second-largest cryptocurrency. The decision to unstake ETH removes a factor that may have contributed to the token’s underperformance in recent months. Celsius, which is restructuring in bankruptcy proceedings and converting into a bitcoin miner, had previously included staking in its activities. The firm has been selling staking rewards on the open market to cover costs associated with the reorganization plan. By unstaking ETH holdings, Celsius aims to offset certain costs incurred throughout the restructuring process.

Celestia’s TIA Token Gains Momentum as Staking Interest Rises

Celestia’s TIA token has gained over 22% in the past 24 hours, defying the muted broader market trend. Investor interest in staking the TIA token has gained momentum, driven by the rising hype for the blockchain’s underlying technology. TIA traded at just under $17 in the early Asian morning hours Friday before seeing a slight correction. Its trading volume in the past 24 hours reached nearly $800 million, the highest to date. Staking TIA on native platforms yields between 15% to 17% annually, minus fees, making it an attractive option for investors. As of now, TIA’s market capitalization is just under $2 billion, potentially offering significant returns to participants as valuations grow further in a bull market.

Bitcoin Market Depth Chart

Chart of the Day

Today’s chart shows bitcoin’s 1% market depth, which represents the buy and sell orders within 1% of the mid-price. This measure is crucial for assessing the order book’s liquidity, indicating how easily traders can trade large quantities at stable prices. Despite bitcoin’s 60% rally in the final quarter of 2023, the 1% market depth failed to recover from the dip caused by Alameda’s demise in late 2022. However, with the anticipated launch of spot ETFs, analysts project that the situation may improve for bitcoin’s liquidity.

Source: Kaiko

Edited by Sheldon Reback.

Q&A: Insights and Analysis

Q: Why did investors pour so much money into digital-asset investment ETPs in 2023?

A: Investors saw a significant opportunity for growth in digital assets, especially with increasing anticipation of the SEC’s approval for bitcoin spot-based ETFs. This optimism led to a surge in inflows into digital-asset investment ETPs, with more than $2 billion invested in 2023 alone.

Q: What impact does Celsius unstaking its holdings of ETH have on the token’s price?

A: The announcement from Celsius to unstake its ETH holdings removes a selling pressure factor that may have contributed to the underperformance of Ether in recent months. This news is likely to be seen as positive by the market and could potentially boost the price of Ether in the coming weeks.

Q: Why has Celestia’s TIA token gained momentum while the broader market remains muted?

A: The rising interest in staking TIA and the hype around Celestia’s underlying technology have contributed to TIA’s exceptional performance. Staking TIA on native platforms offers attractive annual yields, making it an appealing investment option for participants.

Future Outlook and Investment Recommendations

Based on recent trends, it is evident that the demand for digital assets continues to grow. With the potential approval of bitcoin spot-based ETFs by the SEC, we can expect increased liquidity and market depth for bitcoin. This may lead to further price appreciation and investor interest.

Additionally, the unstaking of ETH by Celsius could positively impact the price of Ether, potentially leading to a price surge in the coming weeks. Investors should keep a close eye on these developments and consider diversifying their portfolios to include digital assets like bitcoin and Ether.

References

  1. Investors Pour Record $2 Billion into Digital-Asset ETPs in 2023
  2. Celsius Unstakes Thousands of Ether, Easing Selling Pressure
  3. Celestia’s TIA Token Surges as Interest in Staking Rises
  4. Bitcoin Analysts Watch Support Levels as Price Dives
  5. Bitcoin ETF Fees Will Play Critical Role in the Race to Popularity
  6. Australian Treasury to Question Regulator Over HyperVerse Crypto Scheme: Report
  7. India’s Digital Rupee Crossed a Million Transactions in 1 Day With Some Help From Banks

📢 Your Thoughts Matter!

What are your thoughts on bitcoin’s recent surge above $45,000? Do you expect the price to continue rising? Share your opinions in the comments below and let us know if you’ve made any investment decisions based on these latest developments.

📲 Don’t forget to share this article with your friends on social media! Spread the knowledge and join us in the world of digital assets!

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