USDC Takes Center Stage in January as Bitcoin Awaits Key Inflation Data

By Omkar Godbole (All times ET unless specified) The cryptocurrency market is currently stagnant, with bitcoin experiencing a temporary slowdown in its upward trajectory. This pause is largely attributed to renewed tariff threats from Trump, which have also driven gold prices to record highs and increased demand for the US dollar. However, there are notable developments in certain areas of the market. The VIRTUAL token has seen a significant surge following its listing on Upbit, while Hyperliquid's HYPE token has gained 3%. Additionally, Litecoin is gaining traction, with its perpetual futures open interest on centralized exchanges reaching 5.19 million LTC, the highest since December 9, according to Coinglass. This surge suggests an influx of new capital into the market, likely driven by hopes of a spot ETF listing in the US. In the stablecoin sector, USDC is outperforming its peers, boasting a 21% increase in market capitalization to $53.12 billion, its best performance since May 2021, according to TradingView data. In contrast, USDT, the leading dollar-pegged stablecoin, has only seen a 1% increase. USDC has even surpassed bitcoin, which has grown by 10%. IntoTheBlock attributes USDC's strong performance to its compliance with Europe's MiCA regulations, while competitors like USDT face significant challenges. However, USDT's market is starting to recover, and the simultaneous growth of USDC is providing a positive impulse for the cryptocurrency market. As we monitor the macroeconomic landscape, the upcoming release of the US core PCE, the Fed's primary inflation metric, is highly anticipated. Expectations are for a strong headline figure, with the core reading, which excludes food and energy, showing positive improvements that could help bitcoin break out of its current price stagnation near $104,000. However, ING warns that the dollar may remain strong into the weekend. 'If we don't receive any news on Canada and Mexico by the end of today, there's a risk that the dollar could strengthen further as the market starts to price in a higher chance of tariffs being announced tomorrow,' it wrote. Therefore, it's essential to remain vigilant. Key Events to Watch: Token Events: Conferences: Derivatives Positioning: Market Movements: Bitcoin Statistics: Technical Analysis: Crypto Equities: ETF Flows: Spot BTC ETFs: Spot ETH ETFs: Source: Farside Investors Overnight Flows: Chart of the Day: While You Were Sleeping: In the Ether