💡 Welcome back to DV Chain's Weekly Market Commentary! BTC and ETH continued their strong momentum, with ETF inflows of $2.17B and $885M, respectively. MicroStrategy added another 15,350 BTC, taking its total holdings to an impressive 439,000 BTC, though its buying is expected to pause ahead of earnings. Some key upcoming catalysts include the FOMC rate decision, the BOJ meeting, and Binance’s listing of $PENGU. Dive in below for further insights:
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Market Recap

• BTC and ETH had a strong week of ETF inflows, of +2.17B and +885m respectively
  
  

• MicroStrategy acquires another 15,350 bitcoin for $1.5 billion this past week, taking holdings to 439,000 BTC
  
  
• Starting either this week or the next, it’s likely that Microstrategy’s buying will be put on pause, as they historically don’t buy in the period leading up to earnings
  
  
• Microstrategy included in the Nasdaq 100, $MSTR will get inflows from index products
  
  
• Microsoft shareholders voted against holding BTC on their balance sheet
  
  
• FOMC is coming up this Wednesday, it’s expected that the Fed will cut rates 25 bps
  
  
• BOJ interest rate decision on Thursday
  
  
• Ethena launches USTb, a stablecoin backed by Blackrock Securitize
  
  
• Circle and Binance enter strategic partnership
  
  
• $PENGU will be listed on Binance 12/17
  
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Upcoming Catalysts

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• $BTC
  • MSTR blackout period upcoming, so the MSTR ~2B/week avg btc buying could be put on pause after this week until after their earnings
    
    
• $ETH
  • ETF flows have been robust since the election
  • Future flows aren’t fully priced in yet, which has been the biggest driver of the cycle
    
    
• $LDO
  • DeFi as a sector is going to benefit from the shift in regulatory environment
  • LDO fundamentally is a very strong project, clipping almost $200m in fees on an annualized basis to its treasury
  • It has maintained majority of market share in the LST/LRT space, despite higher temporary yields in new competitor’s liquidity bootstrapping farms
  • From an institutional standpoint, it is much stronger than competitors in terms of safety and network effects. The Lido Dao’s roadmap prioritizes institutional adoption, which we think is an astute plan, given the recent interest in crypto and tokenization from Wall Street
  • It’s likely a Staked ETH ETF will be coming under the Trump admin
  • Fee Switch likely incoming
  • Consensys lawsuit thrown out
    
    
• $ONDO, 1/18/25
  • 3.2B unlock, representing about 10x the Avg Daily volume
    
    
• FTX creditor distributions in Q4 ‘24 - Q1 ‘25

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