Major cryptocurrencies are cautiously trending higher today following the hotter-than-expected jobs report for January. Bitcoin (BTC-USD) and Ethereum (ETH-USD) are up nearly 1% and 0.5%, respectively, so far.
However, crypto-focused stocks continue to bleed. Coinbase (NASDAQ:COIN) remains nearly 27% lower so far this year. Cryptominers Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA) are also down by nearly 27% and 21%, respectively, year-to-date.
Among spot BTC ETFs, BlackRock (NYSE:BLK) and ProShares’ ETFs have now overtaken Grayscale’s GBTC (GBTC) in terms of trading volumes, according to CoinDesk. Traders in the crypto space have thrived on the rampant volatility in cryptocurrencies over the past years. However, with crypto going mainstream, the volatility in Bitcoin could possibly begin to subside.
In another development, some U.S. lawmakers have moved to enable banks to act as custodians of their clients’ digital assets, according to CoinTelegraph. The SEC’s Staff Accounting Bulletin 121 (SAB 121) limits banks’ ability to hold their clients’ crypto assets. However, a newly introduced resolution seeks to repeal SAB 121.
Meanwhile, recent actions from the U.S. Fed and strong jobs growth data mean it will be a while before the much-awaited rate cuts happen. While the Fed waits for the data to do the talking, gains in cryptocurrencies could moderate this year compared to the rally in 2023. In the short term, any rally in BTC could meet stiff resistance at the $44,500 level.
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