According to CoinDesk, the crypto market began the week with losses, as Solana's SOL and Cardano's ADA experienced a 5% drop in the last 24 hours. Bitcoin, the largest cryptocurrency by market value, lost its $41,000 support level early Monday, while the CoinDesk 20, a liquid index of the highest traded tokens, fell 2.86% in the past 24 hours. Traders anticipate prices to decline as low as $38,000 in the coming weeks, potentially causing further losses in other cryptocurrencies.
Recent downward pressure on bitcoin has been linked to sales from Grayscale’s GBTC bitcoin exchange-traded fund (ETF), according to some analysts, including Bloomberg’s Eric Balchunas. However, other newly approved bitcoin ETFs, such as BlackRock’s IBIT and Fidelity’s FBTC, are experiencing net inflows. Data tracked by CoinGlass shows that these ETFs crossed $1 billion last week, indicating buying pressure.
Meme coins Dogecoin (DOGE) and floki (FLOKI) initially rose as much as 12% before retreating, as an @xpayments profile on X (formerly Twitter) sparked adoption hopes among crypto enthusiasts. There is speculation that advertisers could use DOGE for ads and other purposes on the social media platform. Trading volumes for both tokens increased 200% over the weekend, according to CoinGecko data, even as broader crypto volumes remained relatively lower due to minimal volatility. Meanwhile, Terraform Labs, the developer of the failed stablecoin TerraUSD, which collapsed in May 2022, has filed for bankruptcy. Documents filed in Delaware on Jan. 21 reveal that the company has between $100 million to $500 million in assets and the same amount in liabilities.
