January Crypto Market Monthly Report: Comprehensive Analysis of Market Trends

As the first month of 2024 comes to a close, the cryptocurrency markets have experienced a roller coaster ride of highs and lows. Despite a strong start with the rally to Bitcoin Spot ETF approvals, January has ended on an uncertain note for Bitcoin, after four months of a bull run.

The DeFi and NFTs markets have seen sharp spikes in volatility, reflecting the increased uncertainty in 2024. With the anticipation of a bullish trend due to the Bitcoin halving and potential rate cuts in the coming months, January’s high volatility could provide insight into future market trends.

In terms of performance, January 2024 has been a slow start compared to the 39% return seen in January 2023, with only a 0.62% rise.

However, there have been positive developments for Bitcoin. The recovery of the market from the slowdown in Grayscale’s Bitcoin Trust and the reclamation of the $40,000 mark indicate a positive trajectory for the cryptocurrency. Many buyers are hopeful that Bitcoin will reach the $100,000 mark.

Looking at the specific movements of Bitcoin in January, the cryptocurrency started the year with a 5% jump, surpassing the $42,000 mark. The anticipation of a bullish trend and the approval of Bitcoin ETFs pushed the price to reach $49,000 on January 11th. However, outflows from Grayscale’s Bitcoin Trust caused a quick reversal, bringing the price below $47,000 on the same day.

In the following days, Bitcoin experienced further correction and dropped to $38,505, testing the 38.20% Fibonacci level. However, the slowdown in outflows from the GBTC and the increase in inflows to Blackrock’s ETF and Fidelity’s ETF provided some optimism for buyers.

Overall, the recovery at the end of the month sets a bullish stage for February, with a solid engulfing candle formation indicating a potential sharp upside in the coming month.

Bitcoin continues to dominate the crypto market, with a price of $42,610.95 and a market cap dominance of 51.12%. Ethereum follows behind with a modest growth of 0.08% and a market cap slice of 16.92%. BNB, Solana, and XRP have also seen positive movements.

In terms of Bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC) leads the pack with an asset under management of $20 billion, although this has dropped from its peak of $30 billion. The iShares Bitcoin Trust by Blackrock (IBIT) has shown positive inflows and has reached $2 billion in assets under management. Fidelity is also close to reaching this mark with $1.941 billion worth of Bitcoin.

Altcoins have had a bittersweet end to January, with an overall negative month and a 3.64% drop in the cryptocurrency market cap, excluding Bitcoin. However, there are hopes for a reversal opportunity and a positive February.

In terms of top gainers, the Ethereum Naming Service (ENS), SUI, and Manta Network (MANTA) have performed well, while SATS, PancakeSwap (CAKE), and BitTorrent (BTT) have experienced losses.

The DeFi market is showing signs of recovery, with the total market cap resurfacing above $85 billion and the total value locked in all protocols increasing. The top-performing DeFi altcoins include DFI.Money (YFII), UMA, and Alephium (ALPH), while Tellor (TRB), BakeryToken (BAKE), and Terra Classic (LUNC) have seen declines.

The NFT market experienced a sharp drop earlier in the month but has since recovered, with sales surpassing $210 million. This indicates a continuation of the trend in February. The Legends of Multiverse and FOUND Smart Claim collections have had significant sales this month.

Overall, January has been a volatile month for the crypto markets, with Bitcoin’s performance and developments in the ETF space being key factors to watch.