Bitcoin remained around the $90,000 mark despite a four-day chain of Capital from the US Bitcoin ETF spot, totaling $1.68 billion.
This development occurred against the backdrop of a market that had just experienced a "risk-off" due to global tensions and concerns from the Japanese bond market, but some of the risks had eased, helping to stabilize investor sentiment towards the end of the week.
- Bitcoin held close to $90,000 despite a $1.68 billion outflow in the US Bitcoin spot ETF over four days.
- BitGo listed, and its price fluctuated sharply on the first day of trading, but it still closed higher than its IPO price.
- Railgun launches Railgun_connect to expand DeFi privacy, market attention shifts to Fed interest rate decision on January 28.
Bitcoin held steady near $90,000 despite a $1.68 billion outflow from the Bitcoin ETF spot.
Bitcoin held above the $90,000 mark despite spot Bitcoin ETFs in the US recording four consecutive days of Capital totaling $1.68 billion.
The Capital were recorded from US spot ETF cash flow data, with total outflows of $1.68 billion over four consecutive days.
The "risk-off" sentiment this week was triggered by the Japanese bond crisis, as investors worried the shock could spill over into the US market. At the same time, tensions between the EU and the US over Greenland continued to put pressure on risk appetite.
At the time of this update, these two risk factors are believed to have significantly "neutralized." For example, EU-US tensions have eased due to expectations of a Greenland-related agreement, triggering a rebound in market sentiment.
In Asia, markets rose, with Shanghai's SSE Composite and Nikkei 225 gaining 33 and 29 basis points respectively, according to data from publicly available price charts such as Google Finance (Nikkei 225) . However, India's Nifty 50 fell nearly 1%.
The improved sentiment followed Japan's decision on January 22nd to pause interest rate hikes. These factors combined helped Bitcoin maintain its price around $90,000, despite earlier pressure from record outflows from Bitcoin ETFs.
BitGo joins the wave of crypto IPOs with a volatile opening trading session.
BitGo listed its shares, opening higher than the IPO price, surging during the session before narrowing its gains before closing.
BitGo, a crypto custody and infrastructure company, has become the latest crypto business to go public. This development reflects the trend of crypto infrastructure companies entering the public Capital market, although the volatility on the first day shows the sensitivity of valuations.
The stock (NYSE: BITGO) opened at $22, slightly above its IPO price of $18 per share. During the session, the price peaked at $24.50, representing an increase of approximately 36% from the IPO price, but then fell back down.
The stock closed at $18.49, a 2.7% increase from its IPO price. The intraday price chart can be XEM at Yahoo Finance (BTGO) .
Several other crypto infrastructure companies such as Anchorage Digital, Kraken , and crypto payment company Bitpanda are mentioned as planning IPOs. BitGo raised $212 million from its IPO, bringing the company's valuation to over $2 billion.
Railgun_connect extends DeFi privacy with a “plug and play” model.
Railgun introduces Railgun_connect to allow users to interact with DeFi using a "shielded" wallet, supporting Staking, swap, and lending while maintaining privacy.
Railgun (built on Ethereum) announced Railgun_connect as a “plug and play” DeFi integration layer, allowing users to connect shielded wallets to interact with on-chain platforms for Staking, swaps, lending, and other operations.
The project team stated that they have tested this feature with CowSwap on Polygon POS and plan to roll it out more widely within the DeFi ecosystem. The announcement was posted on the Railgun project's X channel .
"A tool that's a first for privacy and a huge leap forward in making private addresses almost as functional as public address."
– Railgun Project, announced on X
With previous-generation privacy platforms like Zcash, users primarily used "shielded" transfers to hide balances, but didn't focus on deploying large-scale Capital in DeFi privately. Railgun_connect could make a difference by bringing private wallets into a more "practical" DeFi interaction flow, thereby impacting the competitive landscape of privacy in cryptocurrency.
The market is shifting its focus to the Fed's interest rate decision on January 28th.
The next major macroeconomic event is the Fed's interest rate decision on January 28th, with the market leaning towards a pause scenario.
Following the weekend's developments, the focus may shift to the Fed meeting on January 28th. The degree of "hawkish" or "dovish" in the message remains a major variable for risky assets, including cryptocurrencies.
Market expectations regarding the possibility of a Fed pause are reflected in the interest rate probability tracking tool at CME FedWatch . However, price reactions also depend on the guiding tone and signals about the next policy path.
Frequently Asked Questions
How long did it take for a $1.68 billion outflow from a Bitcoin ETF spot in the US?
The outflows occurred for four consecutive days, totaling $1.68 billion, according to the ETF inflow data cited in the original article.
Why is Bitcoin still holding around $90,000 despite heavy outflows from ETFs?
Market sentiment improved as some macroeconomic risks eased, including widespread concerns over Japanese bonds and EU-US tensions, helping Bitcoin hold near $90,000 despite pressure from ETFs.
How did BitGo's stock price fluctuate on its IPO day?
BitGo opened at $22 (higher than its IPO price of $18), peaked at $24.50, then declined and closed at $18.49, representing a 2.7% increase compared to its IPO price.
What is Railgun_connect used for in DeFi?
Railgun_connect is a "plug and play" integration that allows users to interact with Staking, swap, and lending on on-chain platforms using shielded wallets, aiming to increase privacy when participating in DeFi.
What macroeconomic event is the crypto market watching next?
The market is watching the Fed's interest rate decision on January 28th, observing whether the message will be hawkish or dovish.
