Start-of-the-year recovery rally stalls: Crypto Daybook Americas

Major cryptocurrencies, including Bitcoin, XRP, and Solana, experienced a pullback of over 1.5% in the last 24 hours, with all 16 CoinDesk sectoral indexes declining, led by a 3.6% drop in the DeFi Select Index. This stall in the start-of-the-year bounce has analysts questioning whether the rally was driven by conviction buying or seasonal factors, especially after U.S. spot bitcoin ETFs saw $243 million in outflows on Tuesday following initial strong inflows. Concerns are heightened by the negative Coinbase Premium, suggesting U.S. investor demand has not fully joined the rally despite the end of December's tax-related selling. However, derivatives markets show renewed risk appetite, with cumulative crypto futures open interest hitting a two-month high and funding rates improving. Traditional markets also present risks, as record high Japanese government bond yields are strengthening Bitcoin's correlation with the yen, meaning Japanese market volatility could impact crypto. Key economic data releases, including the ADP Employment report and ISM non-manufacturing data, are expected to add to market volatility later today.

(Source：CoinDesk)