Daily News | CPI Cooling Rekindles Expectations of Interest Rate Cuts, BTC Returns to $100,000

Crypto Daily Digest: Bitcoin spot ETFs had a net inflow of $723 million, MicroStrategy holds 450,000 Bitcoins

According to Farside Investors data, the US Bitcoin spot ETFs had a net inflow of $723 million yesterday, of which Fidelity FBTC had a net inflow of $463 million, Ark Investment Ark had a net inflow of $138 million, and Grayscale GBTC had a net inflow of $50.5 million.

Yesterday, the US Ethereum spot ETF had a net inflow of $39.9 million, of which Fidelity FETH had a net inflow of $29.3 million, Grayscale ETH had a net inflow of $8.1 million, Vanda ETHV had a net inflow of $2.5 million, and BlackRock ETHA data has not been updated yet.

US inflation cools, expectations of a rate cut in March rise

Core inflation in the United States cooled down, with CPI increasing by 2.9% year-on-year in December, in line with expectations. The year-on-year growth rate of core CPI fell back to 3.2%, the first decline in six months and lower than expectations and the previous value. The month-on-month increase of 0.2% was also lower than expectations and the previous value.

After the data was released, traders expected the Fed’s first interest rate cut to be brought forward from September to July, and the cumulative interest rate cut for the whole year rebounded from 28 basis points to 40 basis points, basically returning to the level before the release of non-farm employment.

On January 16, according to CME’s “FedWatch” data, following the release of U.S. CPI data last night, the probability of the Federal Reserve cutting interest rates by 25 basis points in March rose slightly to 28.2%, from 23.2% the previous day.

MicroStrategy to issue preferred shares to provide investors with leveraged exposure to Bitcoin

At the recent Benchmark investor conference in Orlando, MicroStrategy co-founder and utive chairman Michael Saylor said that the company’s potential issuance of perpetual preferred shares would be “the latest means to provide investors with leveraged exposure to Bitcoin.” He noted that the company’s goal is to provide investors with “1.5 times the return and volatility of Bitcoin.”

MicroStrategy currently holds 450,000 Bitcoins, worth more than $40 billion.

MicroStrategy’s strategy reflects the growing interest of institutional investors in cryptocurrencies, especially against the backdrop of increasing inflationary pressures and uncertainty in traditional financial markets. In the future, more companies may follow its example and explore ways to diversify their assets through cryptocurrencies.

Bitcoin self-custody losses exceed $1.5 billion, exceeding exchange incidents

According to River Research and Analysis, Bitcoin losses due to poor self-custody management have exceeded exchange-related incidents, totaling approximately 1.6 million BTC (worth over $1.5 billion), which is higher than the 1.2 million BTC (over $1.1 billion) lost due to the Mt. Gox hack and FTX bankruptcy.

The study found that wallets that have not been used for a long time (more than 10 years) accounted for the majority of losses, while wallets that were inactive for a short period of time had a lower probability of loss. This may be because long-term holders are more likely to lose their private keys or forget wallet access information, especially among early Bitcoin users, whose technical awareness and backup habits may not be as mature as they are now.

As more and more Bitcoin holders choose self-custody, how to effectively manage private keys and wallet access information will become a key issue. Users need to improve security awareness, take multiple backup measures, and consider using more secure storage methods such as hardware wallets.

Market Trends: Bitcoin Returned to $100,000, AIXBT Set a New All-Time High

Market Hotspots

The AI ​​sector has diverged. The AI ​​sector performed well today as the market rebounded, and many tokens hit record highs, but some previously strong currencies lagged behind. Among them, AI DeFi app Limitus (LMT) rose 37.6% in 24 hours, AIXBT rose 36.3% in 24 hours, and AIXBT rose 36.3% in 24 hours, and the coin prices all hit record highs; On the other hand, the previous hotspot SWARMS fell 24.2% in 24 hours, AIOS fell 15.4% in 24 hours, and FAI fell 9.8% in 24 hours.

Gate.io’s platform currency GT broke through $19.5 and reached a record high of $19.571. GT is now quoted at $19.557, up 4.09%.

Mainstream Coins

BTC continues to rebound and is currently hovering around $100,000, with a rebound of nearly 10% from the bottom;

ETH followed the rebound and is currently consolidating around $3,380, still mainly following the market trend;

Altcoins generally rose, the DeFAI sector’s rebound will be strong, and the rebound of early popular meme coins will be smaller.

Macro News: CPI rekindles expectations of a Fed rate cut, US stocks soar, Tesla surges 8%

Core inflation in the United States has cooled, with CPI increasing by 2.9% year-on-year in December, in line with expectations, and increasing by 0.4% month-on-month, slightly higher than market expectations. However, the year-on-year growth rate of core CPI fell back to 3.2%, the first decline in six months and lower than expectations and the previous value. The month-on-month increase of 0.2% was also lower than expectations and the previous value. After the data was released, traders expected the Fed’s first interest rate cut to be brought forward from September to July, and the cumulative interest rate cut for the whole year rebounded from 28 basis points to 40 basis points, basically returning to the level before the release of non-farm employment.

In addition, the US banking industry’s financial reports were impressive, with JPMorgan Chase recording its highest profit in history, and Citigroup and Goldman Sachs’ performance exceeding market expectations. Cooling inflation data and positive bank financial reports boosted investor confidence, and US stocks and bonds both rose.

The cooling of US inflation and the improvement of bank performance have doubled up, supporting the surge in US stocks, with the single-day increase being the best since November 6 last year, the day after the US presidential election. Wall Street banks kicked off the earnings season, with the banking ETF leading the way with a rise of more than 2.6%, and Goldman Sachs closing up 6.02%. The “Seven Sisters of Technology” all rose. Tesla closed up 8.04%, Meta Platforms rose 3.85%, Nvidia rose 3.37%, saying goodbye to five consecutive days of decline, Google A rose 3.11%, Amazon rose 2.57%, Microsoft rose 2.56%, and Apple rose 1.97%.