Bitcoin Bulls Experience Slowed Momentum Ahead of Bessent Confirmation Hearing
The crypto market experienced a bullish trend following a soft U.S. core inflation report, easing hawkish concerns from the Federal Reserve. However, momentum has since slowed.
- Traders are focusing on President-elect Trump’s inauguration on January 20, with expectations of potential pro-crypto actions.
- Speculations suggest Bitcoin might reach new highs, while other cryptocurrencies like XRP and SOL may see at least 10% price swings.
- On Polymarket, the probability of the U.S. adopting Bitcoin as a strategic reserve has risen to 50%.
- Bitwise indicated engagement in discussions about Bitcoin ETFs with a nation-state, supporting the adoption narrative.
- SEC commissioners could advance crypto policy next week, coinciding with Treasury nominee Scott Bessent's confirmation hearing.
- Bessent emphasized retaining the dollar's status as the dominant global reserve currency during his hearing.
- ING noted that if Bessent discusses tariffs as an inflation control tool, it may lead to volatility in risk assets, including Bitcoin.
Upcoming Events
- January 17: Court of Appeals oral arguments for KalshiEX LLC v. CFTC.
- January 23: SEC decision deadline for Grayscale Solana Trust listing proposal.
- January 25: SEC deadline for decisions on four new spot Solana ETFs.
Market Movements
- Bitcoin (BTC) is down 0.47% at $99,217.43.
- Ethereum (ETH) is down 2.46% at $3,334.68.
- CoinDesk 20 index is up 0.2% at 3,752.68.
- LTC has surged by 16%, experiencing significant futures open interest growth.
- XRP’s open interest has increased by 10%, marking a strong bullish momentum.
Crypto Equities Performance
- MicroStrategy (MSTR): Closed at $360.62 (+5.39%).
- Coinbase (COIN): Closed at $274.93 (+7.66%).
- Galaxy Digital Holdings (GLXY): Closed at C$27.93 (+5%).
ETF Flows
- Spot BTC ETFs reported a daily net flow of $755.1 million.
- Spot ETH ETFs reported a daily net flow of $59.7 million.
Overall, Bitcoin is testing resistance near $100K, with a potential breakout that could attract momentum traders.