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.

TASI

12,105.33

-0.04% (YTD: +1.2%)

MSCI Tadawul 30

1,575.76

+0.01% (YTD: +1.6%)

USD : SAR (SAMA)

3.75 Buy

3.75 Sell

Interest rates

6% repo

5.5% reverse repo

EGX30

27,587.00

-1.7% (YTD: 10.8%)

ADX

9,653.34

-0.3% (YTD: +0.8%)

DFM

4,107.52

+0.6% (YTD: +1.2%)

S&P 500

4,864.60

+0.3% (YTD: +2%)

FTSE 100

7,485.73

-0.03% (YTD: -3.2%)

Euro Stoxx 50

4,465.91

-0.3% (YTD: -1.2%)

Brent crude

USD 79.55

-0.6%

Natural gas (Nymex)

USD 2.50

+2.1%

Gold

USD 2,050.20

+0.2%

BTC

USD 39,601.60

-0.1% (YTD: +73.8%)

THE CLOSING BELL-

The TASI fell 0.04% yesterday on turnover of SAR 8.5 bn. The index is up 1.2% YTD.

In the green: Bahri (+4.5%), Sumou (+4.2%) and AlMawarid (+4.2%).

In the red: MBC Group (-9.9%), 2P (-3.4%) and MESC (-3%).

CORPORATE ACTION-

Plastics manufacturer Takween Advanced Industries shareholders will vote on a capital increase through a SAR 300 mn rights offering on 13 February. If approved, the offering would bring the company’s capital to SAR 765 mn.

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