What happened in the cryptocurrency market in January and why it matters – BeInCrypto review

CONTENT

  • What happened in the cryptocurrency market over the past month

  • What are the on-chain indicators of leading cryptocurrencies

  • What to expect in the coming weeks

International consortium of news organizations developing transparency standards.

January became the month of records for major cryptocurrencies, while XRP managed to fall to fifth place in the capitalization rating and return back to fourth. Grayscale is buying tokens despite Ripple’s legal problems, and startup supporters are ready to defend their interests. Read about these and other important events in January in the January review of BeInCrypto

The cryptocurrency market began January with positive dynamics. The market capitalization of digital currencies in circulation grew $ 765 billion at the beginning of the month to $ 920 billion. The market reached its maximum in a monthly interval on January 10 at $ 1.117 trillion. 

Join our telegram channel to keep abreast of the main trends in the crypto market.

Dynamics of the three largest cryptocurrencies by capitalization

Bitcoin (BTC) + 15%

  • Current market cap: $ 622.4 billion
  • Monthly price change: + 14%;
  • Dominance Index: 62.4%

BTC chart. Source Tradingview

Ethereum (ETH) 

  • Current market cap: $ 152.9 billion
  • Monthly price change: + 83%;

Ripple (XRP) 

  • Current market cap: $ 20.4 billion
  • Monthly price change: + 110%
What happened in the cryptocurrency market in January and why it matters - BeInCrypto review

XRP chart. Source: TradingView

What happened in the cryptocurrency market in January

Bank of Russia allowed blocking accounts for cryptocurrency turnover

In early January, the domestic regulator added cryptocurrency transactions to the list of suspicious for banks. The amendments will enter into force in October 2021.

ALTSEASON SPECIAL – Realistic Price Analysis on 10 Altcoins | DON’T MISS OUT!

Why is it important: Russia is tightening control over cryptocurrency flows. Accounts that regularly receive large amounts related to digital assets will be targeted, but traders who often withdraw profits from cryptocurrency trading to their bank accounts may also face blocking problems..

Grayscale advises buying bitcoin, while buying XRP itself

One of the leading crypto funds recommends stocking up on bitcoin. At the same time, before the New Year holidays, Grayscale acquired 12.48 million XRP, increasing its portfolio to 38.8 million tokens

Why is it important: Token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More cryptocurrency startup Ripple is now in a vulnerable position due to litigation with the Securities and Exchange Commission (SEC). Earlier, the editorial staff of BeInCrypto wrote that many cryptocurrency services divide the coin or suspend trading on it. The news that a large crypto fund bought a token after the lawsuit became known could be a bullish signal for XRP in the long term..

Read also expert opinions on how the conflict between the SEC and Ripple will turn out.

XRP fans posted a petition on the White House website 

A petition has appeared on the US government website asking for XRP to be recognized as a currency as defined by FinCEN. Later, however, the petition disappeared from the site..

Why is it important: Community support can influence the XRP decision. Recall that at the end of January, Ripple Labs published a detailed response to the SEC claims.

Blockchain activity

In January, the stocks of bitcoin on the exchanges did not change, which cannot be said about ETH. As the price of ETH rises, the volume of coins on exchanges has been steadily declining..

Elon Musk’s Bitcoin Pump: Investing or Gambling? | BeInCrypto News

Source: cryptoquant.com

At the time of writing, ETH reserves have already hit their lowest since March 2020. An outflow of funds can mean two scenarios: either the holders of the cryptocurrency transferred assets for staking in ETH 2.0 (rate of 9.8% per annum), or the hodlers decided to withdraw tokens to cold wallets in anticipation of a further rise in the price of ETH.

Learn how to trade in the cryptocurrency market with BeInCrypto partner – StormGain cryptocurrency exchange

At the same time, exchange reserves of stablecoins are growing. As of the end of January, the amount of stablecoins on exchange wallets was $ 4.4 billion..

Source: cryptoquant.com

The surge is largely correlated with the rise in the bitcoin rate, which may mean a constant influx of new money into the market. At the same time, a scenario is possible in which the whales of bitcoin decided to convert part of their assets into stablecoins, expecting a further drawdown in the price of the asset..  

What to expect next month

  • Early February, 8th, The Chicago Mercantile Exchange (CME) will add ethereum futures to the listing. Thus, large players will be able to invest in ETH through regulated instruments. This is the second attempt by CME to make money on cryptocurrency futures trading. Bitcoin futures brought the exchange $ 5 billion in revenue in 2019.
  • Middle February, 22nd, The Southern District Court of New York will hold a preliminary pre-trial hearing in the case of the US Securities and Exchange Commission v. Ripple. What is the essence of the lawsuit and how it can turn out for Ripple – read in a special material from BeInCrypto. 
  • Expected that in mid-February iFinex, the owner of Bitfinex and the issuer of the stablecoin USDT, will provide the court with reports on the mutual financial transactions of the Bitfinex and Tether cryptocurrency exchanges. The company was supposed to transfer the papers on January 15, but requested a 30-day extension. For the first time, the court ordered iFinex to transfer the documents back on September 17, 2020. What can be the consequences of the outcome of the case – read in the special material BeInCrypto.

What do you think? Share your thoughts with us in the comments and join the discussion in our Telegram channel.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

Share Article

What happened in the cryptocurrency market in January and why it matters - BeInCrypto review
What happened in the cryptocurrency market in January and why it matters - BeInCrypto review
What happened in the cryptocurrency market in January and why it matters - BeInCrypto review

Similar articles