Risk Management in Crypto Markets with Compatibility Week Activities: News and Data Review

Cryptocurrency markets are experiencing a complex rally period influenced by compliance week events and macroeconomic developments. Bitcoin and Ethereum, which declined at the beginning of the week, are showing signs of recovery following signals from central banks and geopolitical developments. This article provides a weekly overview of movements in the crypto asset space, technical indicators, and key upcoming events to watch.

Macro Events and Dynamics of Crypto Reactions

Recently, the fragile structure of crypto markets has become closely linked to global trade tensions and monetary policy frameworks. Especially, the trade messages conveyed by the US President at the Davos Forum had an immediate impact on bond yields and risk appetite. In the first half of the week, despite tensions in government debt instruments, uncertainty around compliance week events triggered institutional investors to review their positions.

Japan’s improvement in long-term government bonds has spurred demand for global risk assets, providing relief to the crypto sector. Falling bond yields mean traders find liquidity conditions more favorable. In this environment, Bitcoin surpassed the $90,000 level, while Ethereum showed potential to revisit the $3,000 mark.

Important Dates and Announcements During Compliance Week

Compliance week events bring a series of critical developments for the crypto sector. Here are the main events scheduled for the week:

Crypto Protocol Updates and Tokenomics Events

• Stellar’s X-Ray protocol will migrate to the mainnet
• NEAR Protocol will launch the first edition of Intents Day
• Nexus Mutual will hold an X Spaces session on DeFi risk

Macroeconomic Indicators

• US Gross Domestic Product (GDP) data will be released (Q4 QoQ final estimate: 4.3%)
• Unemployment claims report will be published
• Personal Consumption Expenditures (PCE) data will be shared publicly

Token Launches

• Immunefi (IMU) token production event will take place
• Fight Foundation’s FIGHT token launch time has been set
• MBG token will release 12.13% of its circulating supply (10.11 million USD)

These events could create liquidity and price pressure within the context of compliance week activities for market participants.

Live Market Snapshot (February 1, 19:05 UTC)

Major Crypto Assets

Bitcoin (BTC) is trading at $77,930, down 0.10% over 24 hours. However, it has gained 0.54% in the last hour, indicating support levels are being approached. The 24-hour trading volume is $1.18 billion, with a circulating market cap of $1.557 trillion.

Ethereum (ETH) has fallen to $2,340, down 1.33% over 24 hours. Yet, a 1.69% increase in the last hour suggests buyers are returning to certain levels.

The CoinDesk 20 Index (CD20), representing the broader crypto market, has seen a slight gain over 24 hours.

General Market Environment

Gold futures are slightly down, while stock markets are moving with mixed signals. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed positively, while Asian markets experienced some weakness.

The DXY (Dollar Index) remains flat at 98.70, indicating limited dollar pressure.

Token and Crypto Stock Events: Weekly Calendar

Crypto Stock Performance

Coinbase Global (COIN) closed at $226.93, up 0.99% in pre-market. Galaxy Digital (GLXY) is trading at $32.45, up 1.09%.

In the mining sector:

• Marathon Digital (MARA): closed at $10.56 (+1.83%)
• Riot Platforms (RIOT): recovering in pre-market after closing at $17.25
• Core Scientific (CORZ): down 0.87% at $18.20
• CleanSpark (CLSK): starting at $12.81, up 1.64% in pre-market

Hedge Fund Crypto Companies

MicroStrategy (MSTR) closed at $163.81, up 2.23%. Its stock benefits directly from positive movements in the crypto markets due to its Bitcoin investment strategy.

Spot ETF Flows

Daily net inflows into Bitcoin spot ETFs have decreased to -$708.7 million, with cumulative inflows remaining at $56.61 billion. Ethereum spot ETFs experienced net outflows of -$287 million. This trend suggests institutional investors are reviewing their positions ahead of compliance week events.

Technical Perspective: Emerging Risk Indicators

Bitcoin’s dominance remains steady at 59.72%. This indicates Bitcoin’s relative weight in the overall crypto market is stable.

The Ether-Bitcoin ratio is at 0.03336, reflecting a relative weakness of alternative currencies against Bitcoin.

Interesting Technical Finding: RSI Divergence

The ratio of the top 10 altcoins to Bitcoin market cap has not broken below key weekly support levels despite recent market weakness. In the lower panel, while the price ratio remains flat, technical indicators are gradually rising, forming a bullish RSI divergence. This dynamic suggests a potential shift in the relative strength balance between Bitcoin and alternative cryptocurrencies in the short to medium term.

Hashrate and Mining Power

Bitcoin’s 7-day average hashrate is at 1,017 EH/s. The spot hashprice is $38.77. Open positions in CME futures have reached 120,460 BTC.

Bitcoin’s price in gold ounces is at 18.5 oz, with the ratio of Bitcoin market cap to gold market cap at 6.0%.

Observations and Developments

Crypto markets are moving at the intersection of macro uncertainties and compliance week activities. Despite easing tensions in government debt and geopolitical risks, institutional investors are adjusting their positions cautiously, which is reflected in negative ETF flow figures.

Emerging Risks

Support levels around $80,000 for Bitcoin remain critical. If this level is broken, lower highs and a strengthening downtrend could occur. Bond yields and geopolitical risks continue to exert significant pressure.

Weekly Outlook

During compliance week, macroeconomic data releases and token launch events could increase market volatility. However, updates from protocols like Stellar, NEAR Protocol, and Immunefi, along with their token activities, will be of particular interest to crypto market participants.

CoinDesk’s weekly calendar lists all events, and investors can follow these key dates to guide their portfolio decisions.