Crypto landscape stabilizes while spot ETFs see big weekly inflows

A host of events across countries and private organizations worldwide affirmed positivity in the crypto landscape, which improved across the week with better indicators.

The crypto landscape over the week witnessed events ranging from CBDC trials to digital asset regulation and others. The crypto market also started the week on a strong footing after firm returns last weekend. During the week, the Federal Reserve’s monetary policy meeting fixed a rate pause for the month. The move sent Bitcoin to a minor decline, although it recovered well in the next 24 hours. As a result, BTC looks set to end the week at around $43,000.

In other news, countries like El Salvador are also going in for the next elections, creating hype around Bitcoin. Since the country has been an active crypto proponent, its likely policy moves after the elections saw deliberations. On a positive note, the country’s Vice President said, “At this moment, it enjoys the greatest credibility in the entire world.” He was referring to BTC being a legal tender in El Salvador.

In other news, CBDC trials across multiple countries took up a brisk pace this week. The UK and UAE were especially outperformers, with the digital dirham and pound making strides. The digital pound’s consultations have received multiple responses. Hence, the progress of the central bank digital currency in the UK may continue this year.

In the UAE, the first cross-border digital dirham transfer took place to China, creating a historic moment in the country. It took place via the CBDC platform mBridge, which the central banks of various countries created. 

Meanwhile, global payments company Visa created a new feature this week that could forever change the shape of crypto payments. It enabled its users to convert crypto to fiat money and pay through their Visa debit cards. With millions of Visa users, the feature could trigger a huge wave of crypto adoption.

The United States also pivoted towards digital asset regulation after a span of several months. US lawmaker French Hill, who spoke about it this week, confirmed the country’s plans for digital asset regulation. If the US creates transparent crypto regulatory laws in the near future, the crypto industry could benefit significantly.

Although BTC’s gains in January were around a modest 0.6%, the inflows of the spot Bitcoin ETFs saw huge numbers. At the end of January, all the spot Bitcoin ETFs held 656,421 BTC together, amounting to around $27 billion. If the trend continues, the ETFs could become a key catalyst for a crypto rally in 2024.

The following tokens saw the best returns this week:

These tokens saw the highest losses, though:

The Bitcoin-halving event, inflows of the spot Bitcoin ETFs, and the overall sentiments in the crypto market will likely continue to impact BTC in the upcoming days.

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