This week in markets: Bitcoin clings to $23,000 as crypto stocks rally

By Jeremy Nation • Edited by Jason Shubnell
Markets•January 28, 2023, 4:36PM EST
GoogleMake us preferred
This week in markets: Bitcoin clings to $23,000 as crypto stocks rally

Quick Take

  • Bitcoin managed to stay above $23,000 while Ethereum fell slightly below $1,600 today.

  • Crypto stocks generally rose over the past week.

  • The Fed is expected to hike interest rates next week for the first time since November when rate adjustments marked a 15-year high.

Advertisement

After a rally above $23,800, bitcoin bounced back from a temporary drop below $22,600 earlier in the week, to level out just over $23,000 today for a small 1.6% weekly gain. Ethereum dropped nearly 5.2% over the week, trading at $1,576.

Cryptocurrencies Floki Inu (FLOKI) and Aptos (APT) were in the green in recent days. APT surged with a 65.5% weekly gain. Meanwhile, the Floki Inu community approved a proposal to burn $55 million in FLOKI tokens resulting in a 67.36% weekly gain.

BNB and Polygon’s Matic, saw weekly gains of 0.5% and 11.23% respectively, while XRP fell by 1%.

TradingView BTC chart: Jan 28

Chart from TradingView.

Crypto stocks and structured products

Silvergate shares slid from a momentary spike last Tuesday to $13.57 after the company shared Friday it had suspended a preferred stock dividend. Despite that drop, Silvergate shares still closed the week with a 10% gain.

Coinbase shares were up nearly 22%, while MicroStrategy rose just over 15% and Jack Dorsey’s Block gained 17%.

In structured products, GTBC gained 7.5%, while ETHE fell 0.67% over the week.

TradingView SI Chart: Jan 28
Chart from TradingView.

Macro matters

The Federal Reserve is on deck this week, with an anticipated quarter-point interest rate hike coming on Wednesday. Officials in November increased the federal funds rate by 75 basis points to 3.75-4%, a 15-year high.

For the U.S. economy, growth narrowly surpassed a fourth-quarter estimate of 2.8%, with a 2.9% expansion in the final months of 2022, driven by consumer and federal spending.