Daily News | AIXBT Rebounded Sharply and Broke Through the Previous High; The Release of CPI Data Tonight May Increase Market Volatility

Crypto Daily Digest: BlackRock IBIT experienced a large outflow of more than $200 million, MicroStrategy purchased nearly 260,000 BTC in 2024

According to Farside Investors data, the U.S. Bitcoin spot ETF had a net outflow of $210 million yesterday, of which BlackRock IBIT had a net outflow of $219.74 million, the second largest net outflow day in IBIT’s history. Other BTC spot ETFs had almost no inflows or outflows.

Yesterday, Ethereum spot ETFs had a net inflow of $1.15 million, of which Bitwise ETHW received an inflow of $1.15 million, and other ETH ETFs had no inflows or outflows.

Analysis: Trump Inauguration May No Longer Be a “Sell-the-News” Event for Bitcoin

While Bitcoin quickly hit all-time highs after Trump won the U.S. presidential election in November, macroeconomic headwinds have weighed on the market since mid-December, leading K33 analysts to question their previous expectations of Trump’s inauguration as a “sell-the-news” event.

Analysts tend to sell Bitcoin on the January 20 inauguration, citing the high anticipation of Trump’s pro-crypto campaign promises colliding with the reality of Washington’s typically slow-moving political machine. However, as the inauguration approaches, “sell-the-news” becomes less appealing.

Markets are trying to weigh the inflationary impact of Trump’s tariff rhetoric against potential tax cuts and favorable crypto policies expected to boost risk assets this year.

Opinion: A weak PPI does not mean a weak CPI, but this happens from time to time

Brent Donnelly, an analyst at Spectra Markets, said that weak PPI means weak CPI, which happens frequently, although not always.

It’s unusual for the Labor Department to release PPI data before CPI data in a certain month, but this was the norm before 2018. Looking back at the past 10 years of history: when the overall PPI and core PPI released first, they were both lower than expected, the CPI data released later in the same month had only a 21% probability of being higher than the market’s expected value.

Donnelly found that in this case, CPI was in line with expectations 39% of the time and below expectations 39% of the time. This suggests a small chance that the December CPI data released on Wednesday will be higher than Wall Street expects. Economists had been predicting a 0.3% increase in consumer prices.

Bitwise CIO: MicroStrategy and other companies buying Bitcoin is a “huge trend that is being overlooked”

Bitwise Chief Investment Officer Matt Hougan outlined why he believes companies like MicroStrategy buying Bitcoin is a “huge trend that’s being overlooked.”

“This is a bigger trend than most people realize. In fact, I think it’s a truly massive trend,” Hougan wrote in a note to clients on Tuesday. “Over the next 12-18 months, we will see hundreds of companies buying Bitcoin for their treasury reserves, and their purchases will significantly drive the overall Bitcoin market higher.”

MicroStrategy has purchased 450,000 Bitcoins worth more than $43 billion since launching its Bitcoin acquisition program in 2020, with the latest purchase of 2,530 Bitcoins announced on Monday. In context, MicroStrategy holds about 2.1% of the total Bitcoin supply (21 million Bitcoins).

Hougan said MicroStrategy is much bigger than people think. Although MicroStrategy is currently ranked 220th globally by market cap, it purchased about 257,000 Bitcoins in 2024 alone - more than the 218,829 Bitcoins mined by miners that year.

Market Trends: AIXBT rebounded after oversold and broke through the previous high, XRP hit a record high

Market Hotspots

The AI ​​Agent sector rose collectively. AIXBT continued to rise after being oversold and breaking through the previous high. rebounded nearly 50% from the bottom. After this round of decline, the tokens that first hit new highs will have the opportunity to become the leading tokens in the next round of rising market;

TOSHI and MIGGLES in the meme sector have surged. Both of these meme coins are cat-type meme coins on the Base chain. Cat-type meme coins have performed generally in the past year. POPCAT, MOG, MEW, etc., have all retreated sharply after breaking through $1 billion. Currently, no cat-type meme coin has a market cap of more than $1 billion;

The well-established payment protocol token XRP hit $2.9, setting a new record high. The current circulating market cap of XRP is $161.5 billion, ranking third in the entire market. A few days ago, after US President Trump met with Ripple President Monica Long, Long said that XRP would become the third crypto token to be approved by the spot ETF after BTC and ETH.

Mainstream Coins

BTC continues to rebound and is currently around $97,000, a rebound of nearly 10% from the bottom;

ETH followed the rebound and is currently consolidating around $3,250, still mainly following the market trend;

Altcoins rose and fell in mixed fashion. AI Agent’s leading tokens rebounded first, while early trending meme coins rebounded slightly. A few DeFi-related tokens rose.

Macro news: US stocks are mixed, December CPI data will be released tonight

The three major U.S. stock indexes rose and fell, with the S&P 500 up 0.11% to 5,842.91 points, the Dow Jones up 0.52% to 42,518.28 points, and the Nasdaq down 0.23% to 19,044.39 points. The benchmark 10-year Treasury yield was 4.78%, and the 2-year Treasury yield, most sensitive to the Fed’s policy rate, was 4.37%.

As strong employment data hit expectations of rate cuts and Treasury yields soared, the CPI report became the market’s focus. Stuart Kaiser, head of U.S. equity trading strategy at Citigroup, said that based on the cost of at-the-money puts and calls, the S&P 500 is expected to move 1% on January 15. This is the largest implied volatility before the release of CPI data since the turmoil in the U.S. regional banks in March 2023.

Traders believe the CPI data will clarify the path of the Federal Reserve’s rate cuts this year after several large banks cut their bets on rate cuts following a strong jobs report, with Bank of America even predicting no rate cuts. The shift in tone pushed U.S. stocks lower at the start of the year.