World Stock Watch

Market Turmoil: Risk Assets Plummet as Dollar Strengthens

The cryptocurrency market is experiencing a significant downturn, with Bitcoin (BTC) and alternative cryptocurrencies posting substantial losses. The dollar index and Treasury yields are on the rise, fueled by Friday’s impressive nonfarm payrolls report and concerns over the Palisades Fires’ impact on the insurance sector.

Bitcoin Struggles to Hold Support

BTC has fallen 2% and is currently trading in the key support zone of $90,000 and $93,000. Meanwhile, Ethereum (ETH) has dropped to its lowest point since December 21. The risk-off sentiment has clouded XRP’s bullish technical outlook, despite whales accumulating XRP over the weekend on South Korea-based Upbit.

Traditional Markets Feel the Heat

Futures tied to the S&P 500 are pointing to a negative open, accompanied by continued downside volatility in the British pound and emerging market currencies. The risk-off sentiment has also affected traditional markets, with investment banks revising their expectations for Fed rate cuts.

Upcoming Events and Milestones

• January 13: Solayer (LAYER) “Season 1” airdrop snapshot for staking participants, liquidity providers, and partner ecosystem users.
• January 15: Derive (DRV) token generation event; Mintlayer version 1.0.0 release, introducing atomic swaps.
• January 16: Trading for the Sonic token (S) begins on Binance; U.K.’s Office for National Statistics releases November 2024’s GDP estimate.
• January 17: Primary listing of SOLV, the native token of Solv Protocol; Eurostat releases December 2024’s Eurozone inflation data.

Governance Votes and Calls

• Aave community proposes adjusting borrow rate for its GHO stablecoin from 10.50% to 9.00%.
• Aavegotchi DAO has an active vote on modifying ETH sell ladder parameters due to “significant underperformance” by ETH.

Token Launches and Unlocks

• January 15: Derive (DRV) launches, with 5% of supply going to sENA stakers.
• January 16: Solayer (LAYER) hosts token sale followed by five months of points farming.
• January 17: Solv Protocol (SOLV) lists on Binance.

Macro and Crypto Events

• January 13: U.S. Department of the Treasury releases December 2024’s Monthly Treasury Statement report.
• January 14: U.S. Bureau of Labor Statistics (BLS) releases December 2024’s PPI data.
• January 15: U.S. Bureau of Labor Statistics (BLS) releases December 2024’s Consumer Price Index Summary.

AI Agent Tokens Suffer Correction

AI agent tokens have experienced a deep correction, with ai16z now trading at $1.02, down over 60% from its record high set on January 2. Virtual Protocol’s native token (VIRTUAL) has slumped a further 16% over the past 24 hours, compounding its recent downtrend.

Whales and Funding Rates

Ether whales have begun offloading ETH at a loss, with one trader selling 10,070 ETH for $33 million at a $1 million loss. Perpetual funding rates for TRX, AVAX, SUI, and TON have flipped negative, indicating a bearish shift in positioning.