Daily News | The Total Trading Volume of Bitcoin Spot ETFs in the First 3 Days Reached Nearly $10B; Blast Testnet Launched; Jupiter Will Conduct Token Airdrops on January 31st

Crypto Daily Digest: Blast testnet has launched, Jupiter will launch JUP tokens on January 31st

Bloomberg analyst James Seyfart stated on the X platform that the total trading volume of US Bitcoin spot ETFs in three days is close to $10 billion.

According to its compiled data, the trading volume of Grayscale GBTC in three days reached $5.174 billion, BlackRock’s IBIT in three days reached $1.997 billion, Fidelity’s FBTC in three days reached $1.479 billion, Bitwise’s BITB in three days reached $258 million, ARK 21Shares’ ARKB in three days reached $568 million, VanEck’s HODL in three days reached $51 million, and Invesco’s BTCO in three days reached $129 million, Franklin’s EZBC had a three-day trading volume of $88 million, Valkyrie’s BRRR had a three-day trading volume of $15 million, and WisdomTree’s BTCW had a three-day trading volume of $12 million, totaling $9.771 billion.

According to data disclosed by HashKey Exchange, issuers of spot Bitcoin ETFs currently hold 3.9% of the total supply of Bitcoin, and BlackRock, the world’s largest asset management company, currently holds approximately 11,500 Bitcoins.

Recently, popular projects in various ecos have become active, and they are quickly “reviving” during the bull recovery period.

On January 17th, Blur founder Pacman announced that the Layer 2 network Blast had officially launched its testnet. Meanwhile, Blast announced the launch of the “Blast BIG BANG” campaign for developers to attract Dapp to join.

In addition, Seiyans, the Sei Eco NFT project, will also launch a trading platform called SeiyanSwap. NFT transactions on the platform will incur a 2% fee.

It is reported that 50% of this fee will be returned to Seiyan NFT holders in the form of SEIYAN token airdrops and staking rewards. The remaining 50% will be returned to the development team for future development work.

Solana Mobile, which was popular in the market recently, will also begin pre-sales of its second phone, Chapter 2, with a pre-sale deposit of $450. Meanwhile, the release of Chapter 2 will include various features such as Referrals and Leaderboard.

The protocol token JUP for Jupiter, a popular eco trading aggregator on the Solana eco, will also be launched at 10pm Beijing time on January 31st. Before launching JUP, the team plans to test the new release platform and complete the final white paper for JUPITER. One of them is testing mockJUP (simulated JUP token), and the other is the release of meme coins next week.

As of January 1, 2024, Solana ranked first among the total active addresses in various public chains and Layer2 networks with 13.9 million addresses, with BNB Chain (13.7 million) ranking second to fifth, respectively; TRON (10.8 million); Ethereum (5.4 million); Polygon (4.8 million); In addition, Ronin Network ranked first in terms of active address growth in November and December.

Macro: The Fed downplays expectations for interest rate cuts, shrinking balance sheets may become a hot topic of speculation

On Tuesday, due to hawkish remarks from Federal Reserve Director Waller, investors lowered their expectations for the Fed’s interest rate cut in March, causing the US dollar index to rise sharply and return above 103. It briefly rose to a nearly month high of 103.42 during trading and ultimately closed up 0.66% at 103.34. The yield on US Treasury bonds has also risen significantly. The 10-year US Treasury yield returned to the 4% mark and ultimately closed at 4.054%; The two-year US Treasury yield, which is more sensitive to the Federal Reserve’s policy interest rates, fell first and then rose, closing at 4.221%.

Impacted by the strengthening of the US dollar and US bond yields, spot gold fell more than 1% and continuously fell below the three major integer levels of $2,050, $2,040 and $2,030, ultimately closing down 1.28% at $2028.50 per ounce. Spot silver ultimately closed down 1.29% at $22.92 per ounce.

International crude oil continues to decline. WTI crude oil rebounded to an intraday high of $73.53 in the trading session, then turned around and plummeted, ultimately closing down 0.87% at $71.80 per barrel; Brent crude oil fell 0.72% to $77.72 per barrel.

The three major US stock indexes collectively closed lower, with the Dow Jones Industrial Average down 0.62%, the Nasdaq down 0.19%, and the S&P 500 index down 0.37%. Large chip stocks outperformed the market, with AMD (AMD. O) up 8% and NVDA (NVDA. O) up 3%, setting a new historical high.

Federal Reserve Governor Waller downplayed the expectation of a rapid rate cut, stating that the cut should be carried out cautiously and in an orderly manner, and there is no reason to cut rates as quickly as in the past. He would only do so if necessary, and he is more confident that inflation can sustainably fall to 2%. For the Red Sea crisis, Waller believes that it will not have an impact on basic inflation. Waller also pointed out that slowing down balance sheet contraction this year is reasonable, but only limited to the US Treasury portion.

The recent article by the New Federal Reserve News Agency also fired the second shot at the Federal Reserve’s loose monetary policy. The core point of the article suggests that the Federal Reserve will slow down the pace of balance sheet contraction to prevent financial chaos. This is a sign that the Federal Reserve’s monetary policy has gradually shifted from tightening to easing.

In the past 18 months or more, the Federal Reserve has been reducing its balance sheet at full speed, allowing up to $60 billion of U.S. treasury bond bonds and $35 billion of institutional bond positions to mature naturally each month, instead of reinvesting the proceeds due.

Federal Reserve officials will immediately begin considering slowing down (but not ending) so-called quantitative tightening policies after this month’s policy meeting, which may have a significant impact on financial markets. The Federal Reserve will hold a monetary policy meeting on January 31st, at which time the market’s focus will not be on “whether to imply a rate cut”, but on the statement of balance sheet reduction. The market expects the Federal Reserve to set a timeline for slowing down its balance sheet contraction at its January meeting. In the short term, the market’s hype about “slowing down balance sheet contraction” will outweigh interest rate cuts.

Although the Federal Reserve expects to cut interest rates this year due to declining inflation, its reasons for reducing bond issuance are different, in order to prevent interference in an inconspicuous but crucial corner of the financial market. The reasons for slowing down balance sheet reduction are different from interest rate cuts. Slowing down balance sheet reduction is to prevent problems in the financial market, and the impact on the market varies depending on the purpose. If the balance sheet is first reduced, the urgency of interest rate cuts will decrease.

Nowadays, every move by the Federal Reserve will affect the trend of global financial markets. The expectation of this year’s balance sheet reduction and interest rate cut will continue to boost market confidence to some extent. However, we still need time and patience to wait. When it is truly implemented, funds will definitely focus on the crypto market, because you know, Wall Street knows better. The growth potential of the crypto market in the future is immeasurable.