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 saw this coming: 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.

ADX

9,653

-0.3% (YTD: +0.8%)

DFM

4,107

+0.6% (YTD: +1.2%)

Nasdaq Dubai UAE20

3,869

0% (YTD: +0.7%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5% o/n

5.2% 1 yr

TASI

12,105

0.0% (YTD: +1.1%)

EGX30

28,050

+1.2% (YTD: +12.7%)

S&P 500

4,851

0.0% (YTD: 1.7%)

FTSE 100

7,485

0.0% (YTD: -3.2%)

Euro Stoxx 50

4,465

-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 ADX fell 0.3% yesterday on turnover of AED 930.8 mn. The index is down 0.8% YTD.

In the green: Commercial Bank International (+9.4%), E7 Group (+3.7%) and Foodco National (+3.3%).

In the red: National Corporation for Tourism and Hotels (-6.8%), Emirates Driving Company (-6.4%) and Americana Restaurants International (-4.9%).

Over on the DFM, the index rose 0.6% on turnover of AED 255.2 mn. Meanwhile, Nasdaq Dubai stayed flat.

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