Unhosted Weekly: Crypto Market Overview #16

👀 The Bull Cycle Is Not Over Yet

The head of CryptoQuant shares a bullish outlook, drawing parallels to the last cycle's peak, which occurred two months after inflows into the Grayscale GBTC fund tapered off. Currently, institutional buying remains robust, particularly through paper Bitcoin via ETFs. CryptoQuant advises holding steady, suggesting there's no need to exit the market until ETF and MicroStrategy buying activities begin to decelerate.

📅 2021 vs 2025

This is the opinion of the head of CryptoQuant based on the peak of the last cycle, which was reached 2 months after inflows into the Grayscale GBTC fund dried up.

Today we see continued institutional buying activity (especially paper Bitcoin via ETFs), so "no need to rush off the cyclical high until ETF and MicroStrategy buying slows down".

🥋 Map of the US Strategic Bitcoin Reserve Bills

If you try to look creatively at the right side of the card, you can see Donald Trump performing a high kick.

🪙 Tether to Deploy USDT to Bitcoin and Lightning Networks

Tether plans to deploy its USDT stablecoin on the Bitcoin network via the Omni and RGB standards, as well as the implementation of support for the Lightning Network. This will be possible thanks to the Taproot Assets protocol developed by Lightning Labs, which allows assets to be issued on the Bitcoin blockchain and transacted via the Lightning Network.

🟢 RGB is a second-layer protocol that allows for the issuance of assets on the Bitcoin network with increased privacy.

🟢 The Lightning Network will enable fast and cheap USDT transactions, which could increase its use in global settlements.

⚡️ Tether plans to make Bitcoin one of the key networks for USDT, which will allow the Bitcoin ecosystem to develop DeFi infrastructure.

💵 MicroStrategy increased its perpetual convertible preferred stock offering nearly three times (from 2.5 million to 7.3 million) at $80 per share

This will allow the company to raise $584 million in new capital for another purchase of bitcoins.

📰 Dennis Porter and Murray Rudd of the Satoshi Action Fund have released a peer-reviewed paper claiming that Bitcoin will reach $1 million as early as 2027.

📊 The Number of Active Ethereum Addresses Has Increased by 37% Since November

Daily transaction volumes and DEX activity are also increasing

All this could indicate bullish potential for ETH

🚀 BTC Chronicle | January 31, 2025

📈 Bitcoin's Bull Cycle Gains Momentum: Global Liquidity Index Signals Uptrend

The bullish sentiment surrounding Bitcoin continues to strengthen, supported by the latest analysis of the Global Liquidity Index. Building on yesterday's insights, the head of CryptoQuant highlights that this setup has historically preceded every major Bitcoin rally and is showing promising signs once again.

🔍 Key Insights:

• Global Liquidity Index on the Rise: The Global Liquidity Index, a critical macroeconomic indicator, has crossed above its 40-day simple moving average (blue line). Historically, this crossover has signaled the onset of upward market trends. To date, there have been 16 trades based on this signal, with a 75% success rate in closing profitably.
  

• Institutional Buying Remains Strong: Institutional investors continue to pour into Bitcoin, especially through paper Bitcoin via ETFs. MicroStrategy has ramped up its perpetual convertible preferred stock offering from 2.5 million to 7.3 million shares at $80 each, raising $584 million for additional Bitcoin acquisitions. This sustained institutional interest underscores the confidence in Bitcoin's long-term prospects.
  

• Community Collaboration: A special shoutout to Flicky in our Discord community for developing the Global Liquidity Index indicator and making it compatible with the Scalon key and Quant Prime services. Contributions like these enhance our analytical capabilities and foster a collaborative environment for all members.
  

• Technical Indicators Alignment: In addition to the Global Liquidity Index, the 2-day RSI vs. EMA setup is also signaling potential bullish momentum. If Bitcoin maintains a closing price above $103,000, we could see significant upward movements, potentially reaching the $125,000 mark. The alignment of multiple indicators strengthens the case for a continued bull cycle.
  

• Upcoming Market Events: Tomorrow is a pivotal day as the next 5-day period closes, potentially confirming the current bullish signals. Additionally, the monthly closure for traditional markets will provide further insights into Bitcoin's trajectory and its correlation with global financial trends.

📊 What to Watch:

• Bitcoin's Closing Position: Monitoring whether Bitcoin closes above key support levels, particularly the $103,000 mark, will be crucial in validating the current bullish trend.

• Global Liquidity Trends: Keeping an eye on global liquidity movements will help in understanding the broader macroeconomic factors driving Bitcoin's price action.

• Institutional Activity: Continued investments from institutional players like MicroStrategy and the approval of new ETFs will be important indicators of sustained confidence in Bitcoin.

💡 Final Thoughts:

The convergence of strong institutional support, positive technical indicators, and active community contributions suggests that Bitcoin's bull cycle is far from over. While no setup is foolproof, the historical success of the Global Liquidity Index in predicting major rallies provides a solid foundation for optimism.

Stay tuned for more updates and in-depth analyses in our next edition!

🌐 AI Agents & Crypto: A Wild 24-Hour Roundup

The intersection of AI and cryptocurrency continues to heat up, with significant developments shaping the landscape over the past day. From innovative AI agents to major corporate integrations, here's your comprehensive update on the latest trends and breakthroughs.

🔍 AI Agents in Action

• Todo List Management with AI
  Crypto enthusiasts (@cz_binance) highlight the growing demand for AI agents to streamline daily tasks. "Need an AI agent to organize my todo list. I sure can't manage it. I write things down and forget," tweets @cz_binance, emphasizing the practical applications of AI in personal productivity.

• Deepseek Data Leak Saga
  The Deepseek controversy escalates with allegations of a significant data leak. Previous attempts to compromise the platform and concerns from Western entities about data potentially funneling back to the CCP suggest an intensifying cyber warfare landscape. Read more

☁️ Major Corporate Moves

• Microsoft Embraces Open Source AI
  Unfazed by recent challenges, Microsoft integrates open-source models into its Azure cloud services. "If you can't beat 'em, join 'em," suggests a strategic pivot towards open-source solutions, potentially tipping the scales in favor of open-source AI dominance. Details

• Elon Musk’s AI & Robotics Push
  Elon Musk continues to steer his corporate empire towards AI and robotics. Speculations are rife about Tesla unveiling new physical agentic solutions, leveraging Grok to enhance learning capabilities and drive vertical integration. Explore

📰 Weekly AI Roundup by Reuters

• Government-Tailored ChatGPT
  ChatGPT launches a version tailored for government use, enhancing its applicability in public sector operations.

• Alibaba's New AI Model
  Alibaba releases an updated AI model, reportedly outperforming DeepSeek, raising questions about the pressures leading to early releases. More

📈 Crypto-Specific AI Developments

• Giza's Rapid Deployment
  Giza successfully deploys $200k in deposits and creates 800 AI agents within hours. These agents optimize yields and arbitrage stablecoin peg breaks, showcasing the efficiency of AI in crypto trading. Learn More

• AIXBT vs. Moby Insights
  Competitive dynamics intensify as Moby outscores AIXBT with advanced coverage on capital flows from smart wallets. However, AIXBT remains strong with contextual insights from Venmo's founder. See Comparison

• Holoworld Simplifies Agent Deployment
  Demonstrating ease of use, Holoworld shows how to deploy an AI Agent on Twitter’s protocol with just a click, bringing the "dead internet theory" closer to reality. Watch Demo

🎥 AI-Powered Crypto Shows

• MoemateAI’s Latest Episode
  Distributed its second episode featuring @milesdeutscher and @TheCryptoLark, delving into discussions about the agentic future and the evolving role of AI in crypto.

🔮 Future Directions: Where Are AI Agents Headed?

Insights from 6529 outline the anticipated evolution of AI Agents, predicting deeper integration into societal functions and broader applications across various industries. Read Full Insights

💡 Final Thoughts

The rapid advancements in AI and its seamless integration with the crypto ecosystem signal a transformative era ahead. From enhancing personal productivity to revolutionizing crypto trading and corporate strategies, AI agents are becoming indispensable tools in the digital age. Stay engaged, stay informed, and embrace the future of AI-driven innovation.

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