EthDan’s Review: Bitcoin and Ethereum Weekly Update
As the week draws to a close, Bitcoin and Ethereum are showing slight gains, with Bitcoin up about 2% and Ethereum up 1% since yesterday. At the time of writing, Bitcoin is trading at \(43,195.70, having surged back to \)43,000 late last night. This represents a 4.4% increase from a week ago, as reported by CoinGecko data.
Impact of U.S. Jobs Report on Bitcoin
On Friday morning, the U.S. Bureau of Labor Statistics revealed that the U.S. added 353,000 new jobs in January, maintaining the unemployment rate at 3.7% for the third consecutive month. Following this announcement, Bitcoin experienced a slight dip, possibly due to concerns about the Federal Open Market Committee (FOMC) meeting in May and its potential impact on the market.
Federal Reserve’s Decision and Market Reaction
Earlier in the week, investors were anticipating a signal from Federal Reserve Chairman Jerome Powell regarding a possible rate cut after the next FOMC meeting. However, the Fed opted to keep rates unchanged, leading Powell to express reluctance towards lowering rates in the near future. The strong jobs report further diminished expectations of a rate cut, with 56% of investors now projecting a cut in May rather than March, according to the CME FedWatch Tool.
Bitcoin ETFs and Market Capitalization
Bitcoin ETFs closed the week with a combined market capitalization of nearly \(30 billion, marking a \)2 billion increase from the beginning of the week. Reports from CoinShares suggest that the rush to sell Grayscale Bitcoin Trust shares has slowed down following the conversion of the fund into a spot Bitcoin ETF. Notably, the outflows since Monday have decreased, indicating a significant slowdown compared to the previous week.
PYTH Listing on Binance and Price Oracles
In other news, the PYTH token, the native token of the Pyth Network for price oracles, experienced a 16% surge after being listed on Binance. Users can now deposit PYTH tokens with withdrawals set to open tomorrow. At the time of writing, PYTH is trading at $0.5072, reflecting a 15% increase from the previous day and a 25% rise from a week ago. Price oracles such as Pyth provide real-time asset price information, with Pyth being the oracle utilized by Solana liquidity aggregator and decentralized exchange Jupiter.
During the much-anticipated airdrop of its JUP token earlier in the week, Jupiter saw a 70% increase in the token’s value. As of late Friday morning, JUP was trading at $0.636, marking a 9% gain from the previous day. This surge demonstrates the market’s positive response to the airdrop event and the growing interest in decentralized finance initiatives.
Stay tuned for further developments as the crypto market continues to evolve and respond to global economic indicators and industry trends.
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