• 0xResearch
  • Posts
  • 🟣 A healthy-ish consolidation

🟣 A healthy-ish consolidation

As ETF hype fades, the next FOMC meeting is around the corner

January 29, 2024

The market seems to like the latest from the ETF flows data. Bitcoin’s bounce back above $40k on Friday shows no signs of fading yet.

Last Wednesday, with a rejection at $40.5k unfolding, I wrote that the daily structure looked rather like a Wyckoff Distribution, but that this would no longer be the case with successive daily closes back above the breakdown area ($40.5k to $41k).

Even discounting the weekend price action — which can be a bit funky — a close above $43k, where BTC is at time of writing, would qualify as an invalidation.

Still, zooming out, nothing’s really changed unless/until bitcoin gets back above the prior swing high in the $46k-$47k range.

This week has a macro catalyst in the form of an FOMC meeting and rate decision on Wednesday. Big Tech names such as AAPL, MSFT, GOOGL, AMZN and META all have 4th quarter earnings reports coming up as well.

Ether is lagging behind by comparison, with ETH/BTC solidly back in its Q4 2023 range.

Solana looks like a high beta play on the bitcoin moves; after dipping as low as $79 last week, it’s now cracking $100 again, roughly doubling bitcoin’s rally.

Solana DEX aggregator and futures exchange, Jupiter, will distribute its highly anticipated $JUP token on Wednesday.

And speaking of distributions, the Roundhill Bitcoin Covered Call Strategy ETF $YBTC, which sells calls against its spot BTC holdings, declared its January distribution of $1.33 per share is effective today. That will be payable on Wednesday as well, with a distribution yield of 33.19%.

That’s Y we BTC.

P.S. Blockworks Research would like your feedback to help prepare Blockworks’ 2024-2025 Research, Data, and Analytics Roadmap. 

This survey should take a few minutes and is incredibly helpful for us.
Thank you!

Phantom stalking Coinbase:

Solana wallet Phantom’s mobile offering gets an adoption boost as the former “flipped” Coinbase in app store downloads for the first time.

2023 was an incredible year for Synthetix, as it was able to come out of the grueling bear market and create and scale a brand new offering to find product market fit in a short amount of time.

A handful of AI projects already exist that are quite highly valued, but there is definitely more potential left, especially if the market continues to turn increasingly bullish overall.

Cincinnati-based GRIID Infrastructure made its debut on the Nasdaq Monday after publicly listing in Canada earlier this month.

While the outflows from Grayscale have slowed, as expected by JPMorgan, BlackRock’s bitcoin ETF sales have also decelerated.

The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.