Something to remember: 

“One does not beg the sun for mercy, and one does not hunt for sand in the dessert”

The Week Ahead

What’s driving markets?

• Grayscale outflows continue, but cumulative inflows taking into account the other ETF issuers have more than offset the selling. Bitcoin market dominance dropped 2% last week while the broader crypto market capitalization climbed 9.62%.

• Multiple FOMC members are set to deliver speeches throughout the upcoming week, where the market will be watching closely for clues regarding the Federal Reserve’s intentions for the March 20th FOMC meeting. As of writing, futures are pricing in an ~80% chance that rates are left untouched for the second meeting in a row. Strong economic data in the past few months has given the Fed much needed confidence to stick to a higher for longer strategy. 

Catalysts

• Tuesday, February 13th @8:30am ET: US Consumer Price Index (CPI)

• Friday, February 16th @8:30am ET: US Producer Price Inflation (PPI) 

Charts

• Average BTC/USD bid-ask spread, a measure of market depth, has notably tightened since the approval of spot ETFs.

• Powell’s speech in the post-FOMC press conference has caused significant volatility in the futures market for probability of a rate cut at the March meeting.

• MEXC liquidity has gained significantly, now far outpacing even Binance on 0.1% market depth for their top 25 token pairs.

• However, their market depth to volume ratio is an outlier, indicating that the excess liquidity still has not catalyzed additional trade volume.

Research Content

• MEXC liquidity analysis.

• Montenegro appeals court overturns Do Kwon’s extradition decision.

• Judge approves motion compelling Ripple to provide financial statements for XRP sales.

• Wormhole bridge announces details for “W” token distribution.

• Binance Research: Ordinals.

• Eigenlayer deposits surpass $5.5B.

• Solana network experienced an outage.

• Janet Yellen comments on crypto dangers to Congress.

• Microstrategy acquires 850 more Bitcoin.

• ETF issuers surpass an aggregate 200k btc in inflows.

• NYAG expands lawsuit against Digital Currency Group.

• Digital asset investment products saw mammoth $708m inflows last week.

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