Rebound in Demand: A Closer Look at Crypto Daybook Americas

Omkar Godbole reports (all times ET unless stated otherwise) that Bitcoin ($85,250.16) rebounded from early Asian session lows, providing a boost to altcoins such as ether ($2,837.03), XRP ($1.8396), and solana ($122.81). There's a continuous flow of liquidity between sectors, with a current shift from privacy coins to smaller projects like ASTER, RENDER, SKY, and MNT, which have seen a 7% increase. Although the activity appears normal, the key story revolves around the demand shift as indicated by the 'apparent demand' metric. This metric, which tracks bitcoin's issuance against the behavior of long-term holders to gauge net cumulative demand over the past 30 days, has recently turned positive, reaching a three-month high of 5,252 BTC (approximately $549 million), according to Capriole Investments. This surge is mirrored by the $523 million net inflow into U.S.-listed bitcoin spot ETFs on Tuesday, the highest in over a month, as per SoSoValue data. However, traders remain cautious on the derivatives front, with annualized funding rates on Deribit, a preferred platform for sophisticated traders, staying well below the 2025 average of 5.9%. A similar pattern is observed in ether, complemented by subdued stablecoin lending rates on Aave, signaling muted risk appetite, according to FRNT Financial. Market participants are growing increasingly weary of the prolonged U.S. government shutdown. As noted by Singapore-based QCP Capital, 'The Senate's stopgap bill extending funding through January 30 mitigates near-term risks but fails to address the underlying fiscal impasse — a classic temporary fix.' The absence of economic data, pending the House's approval of the measure, leaves traders in a state of uncertainty. According to QCP, private data releases such as the ADP payrolls and NFIB Index carry additional weight, 'both indicating softer labor conditions and cautious business sentiment.' This reinforces the narrative of 'cautious easing' ahead of the December FOMC meeting (December 9-10), the firm stated. In traditional markets, the rebound in gold has stalled at around $4,130 per ounce amid a renewed spike in the MOVE index, which measures the 30-day expected volatility in Treasury notes. Increased Treasury market volatility typically negatively impacts gold and risk assets, including cryptocurrencies. For in-depth analysis of today's altcoin and derivatives activity, see Crypto Markets Today. For a comprehensive list of this week's events, refer to CoinDesk's 'Crypto Week Ahead.'