Daily News | BTC’s Pullback Led to the Collapse of Altcoins, Fed Significantly Lowered Its Rate Cut Expectations This Year

Crypto Daily Digest: BTC ETFs had a large outflow of more than $500 million in a single day, MicroStrategy will increase its holdings of BTC by nearly 260,000 in 2024

According to Farside Investors data, yesterday the U.S. Bitcoin spot ETF had a large net inflow of $543 million, of which Fidelity FBTC had a net outflow of $86.3 million and Ark ARKB had an outflow of $212 million. BlackRock IBIT data has not been updated yet.

Yesterday, the Ethereum spot ETF had a net outflow of $86.8 million, of which Fidelity FETH had an outflow of $67.6 million and Grayscale ETHE had an outflow of $8 million. The BlackRock ETHA data has not been updated yet.

MicroStrategy’s total holdings of Bitcoin increased by 258,320 by 2024, with an average price of $85,450

MicroStrategy founder Michael Saylor wrote, “MSTR acquired 258,320 Bitcoins in 2024 for a total of $22.07 billion (about $85,450 per Bitcoin) and realized a 74.3% return on Bitcoin.

At the beginning of the year, the company held 189,150 Bitcoins and realized an increase in the value of 140,630 Bitcoins (an average of 385 bitcoins per day).

At $100,000 per Bitcoin, this means the company is creating $14.06 billion in value for shareholders, or $38.5 million per day.”

Bitwise: Bitcoin macro resistance and on-chain benefits coexist, and it is expected to outperform traditional assets in 2025 and beyond

Bitwise released a Bitcoin macro investor report for January 2025, pointing out that in December 2024, the crypto market faced macro resistance such as profit-taking and reduced institutional exposure. The appreciation of the US dollar and the Federal Reserve’s policy adjustments led to a tightening of the financial environment, but Bitcoin still received support from on-chain data.

Despite the short-term risks, long-term positive factors such as Bitcoin halving and strategic reserves support expectations of significant price appreciation, and are expected to outperform traditional assets in 2025 and beyond. Although the Federal Reserve cut interest rates by 25 basis points in its December meeting, it hinted that future interest rates will be higher than expected.

Declining global liquidity and a stronger dollar put pressure on Bitcoin, whose performance is linked to traditional markets such as the S&P 500. On the chain, ETFs, corporate treasuries and retail demand have caused a supply gap for Bitcoin. Although some on-chain activities have cooled down, key indicators such as falling exchange balances and rising computing power show that the market remains resilient.

U.S. job openings rise to six-month high in November

U.S. job openings rose to a six-month high in November, driven by sharp gains in the business services sector, while demand for workers in other industries was more mixed.

The U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) released on Tuesday showed job openings increasing to 8.1 million from an upwardly revised 7.8 million in October, beating all analysts’ expectations. The increase was almost entirely led by professional and business services and finance and insurance.

The latest job openings data showed an easing of a nearly three-year decline. The job market now appears to be on more solid ground, while inflation has also been stubborn in recent months, reducing expectations for a rate cut by the Federal Reserve this year. After the data, traders no longer fully priced in bets that the Fed would cut rates by July.

Market Trends: New coin SONIC performed well, BTC’s pullback led to the collapse of Altcoins

Market Hotspots

The new coin SONIC was launched, with the highest intraday increase exceeding 70%, and the current increase has narrowed slightly; SONIC is a Layer2 compatible with the Solana chain virtual machine, specially designed for games;

The early leading tokens of the AI ​​Agent sector, such as VIRTUAL and SWARMS, fell sharply and pulled back, while COOKIE and ALCH rose; the funds in the AI ​​Agent sector were diverted from the leading tokens to other trending tokens with small market cap.

Mainstream Coins

BTC fell sharply by more than 5%, from $102,000 to around $97,000. BTC ETF continued to have a large net outflow of more than $500 million. BTCD rose again by 0.5% to 56.7%;

ETH fell back below $3,400, and its subsequent trend is still mainly following BTC;

Altcoins generally plummeted, and the AI ​​Agent sector also fell sharply, and the market entered an adjustment cycle.

Macro News: US stocks plunged, and the market’s expectations for the Fed’s interest rate cut this year were significantly lowered

The three major U.S. stock indexes closed down collectively, with the S&P 500 down 1.11% to 5,909.03 points, the Dow Jones down 0.42% to 42,528.36 points, and the Nasdaq down 1.89% to 19,489.68 points. The benchmark 10-year U.S. Treasury yield was 4.67%, and the 2-year Treasury yield, which is most sensitive to the Fed’s policy rate, was 4.30%.

On the news front, the number of job openings in the United States rose to a six-month high in November last year, and the ISM service industry index grew faster than expected in December. The data exacerbated concerns that the labor market is hot and inflation will remain high, and weakened the Fed’s reason to continue cutting interest rates this year. After the data was released, the yield on the 10-year U.S. Treasury bond rose nearly 6 basis points to 4.675%.

The most watched economic data this week is the non-farm payrolls report for December 2024, which will be released on Friday. The data is expected to show that employers’ hiring slowed down, ending 2024 with a moderate but still healthy labor market. Analysts believe that the non-farm data is unlikely to change the views of Federal Reserve officials, who believe that the pace of interest rate cuts can be slowed down as the economy continues to grow and inflation gradually subsides.

In addition, the minutes of the Federal Reserve’s latest meeting will be released on Wednesday, which is expected to provide more information on Fed officials’ interest rate forecasts, as well as comments from several key policymakers.