Crypto winter is coming: BTC has dropped over 20% since the launch of BTCexchange-traded funds (ETFs) earlier this month — currently trading at USD 39.2k as of midnight yesterday, down from a USD 49k+ high during trading on 11 January.

The why: BTC “has been challenged by tougher macro conditions — evidenced by rallying rates and a strengthening USD — and significant selling pressure from traders unwinding their Grayscale BTC Trust arbitrage positions along with the FTX bankruptcy estate offloading assets,” Fundstrat Global Advisors’s head of digital-asset strategy Sean Farrell said in a note picked up by Bloomberg.

ICMYI- This month has marked a milestone for the currency with nine new BTC ETFslaunching on 11 January, granting BTC and other crypto more exposure to traders on the stock market. Investors — including investment manager giant BlackRock — poured a total USD 900 mn into the BTC ETFs in the first three days of trading.

Not everyone predicted this rocky start: Crypto investors earlier in the month excitedly predicted BTC to surpass the USD 100k a piece mark in 2024, following the US Securities and Exchange Commission’s approval of spot BTC exchange-traded funds (ETFs), according to CNBC. ETFs that allow investors to hold and trade cryptos on stock exchanges were expected to attract more investor appetite and boost its use as a mainstream currency as more Wall Street big shots like BlackRock, Invesco, and Fidelity pile into the new offering.

Asian markets are down in early trading this morning. Futures suggest Europe will follow suit, while it’s a mixed bag from Wall Street with the Dow Jones in the red and the S&P 500 along with the Nasdaq in the green.

EGX30

27,587

-1.6% (YTD: +10.8%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

12,105

0.0% (YTD: +1.1%)

ADX

9,653

-0.3% (YTD: +0.8%)

DFM

4,108

+0.6% (YTD: +1.2%)

S&P 500

4,865

+0.3% (YTD: +2.0%)

FTSE 100

7,486

0.0% (YTD: -3.2%)

Euro Stoxx 50

4,466

-0.3% (YTD: -1.2%)

Brent crude

USD 79.78

-0.3%

Natural gas (Nymex)

USD 2.45

+1.3%

Gold

USD 2049.90

+0.4%

BTC

USD 39,206.21

-1.5% (YTD: -7.5%)

THE CLOSING BELL-

The EGX30 fell 1.6% at today’s close on turnover of EGP 6.72 bn (112.5% above the 90-day average). Local investors were net sellers. The index is up 10.8% YTD.

In the green: Oriental Weavers (+3.5%), E-finance (+0.8%) and CIRA Education (+0.8%).

In the red: Orascom Development (-5.5%), GB Corp (-5.1%) and Eastern Company (-4.9%).

CORPORATE ACTIONS-

EG Bank to move forward with capital increase: EG Bank will increase its issued and paid-up capital by EGP 500.5 mn through its FY 2023 net income, the bank said in a disclosure (pdf) to the EGX. The bank will issue freeshares, with the number of issued shares to be determined “based on the prevailing exchange rate of the USD on the date of issuance of the General Assembly's resolution,” the company added.

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