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Trading Desk Insights
Bitcoin has recently struggled to gain momentum, with market participants exercising caution ahead of the U.S. nonfarm payrolls report, which has been limiting the upside potential. Job creation in January fell short of expectations, with nonfarm payrolls increasing by only 143,000, down from an upwardly revised 307,000 in December and below the forecasted 169,000. The unemployment rate edged down to 4%. Despite the miss, market reaction has been muted, with Bitcoin and equities both trending higher, while Treasury yields have also risen. The Federal Reserve is closely monitoring the data as it evaluates its next monetary policy actions.
In the lead-up to the payrolls report, there was a noticeable uptick in demand for Bitcoin put options, particularly with strikes around $80,000 and $90,000. This reflects a more cautious sentiment in the market, as traders position for the possibility that stronger-than-expected jobs data might delay or reduce the chances of Federal Reserve rate cuts, which could exert downward pressure on Bitcoin. However, call options remain more popular overall, indicating a prevailing bullish outlook.
Ethereum is showing price behavior reminiscent of its August bottom, suggesting a potential consolidation phase before another bull run. After a sharp rebound from $2,000 to $2,900, ETH has experienced significant volatility, signaling that selling pressure might have reached its peak. This could set the stage for a rally, provided macro conditions remain favorable. Positive signs include robust demand for Ethereum on OTC desks and from spot Ether ETFs, reinforcing the potential for further upside.
The News Room
BlackRock Acquires 5% Stake in Strategy Amid Rising Bitcoin Exposure
BlackRock has raised its ownership in Strategy (formerly MicroStrategy) from 4.09% to 5%, acquiring 1.78 million additional shares, bringing its total holdings to 11.26 million shares worth approximately $3.67 billion. The asset manager’s increased stake comes as Strategy continues expanding its Bitcoin holdings, which currently stand at 471,107 BTC (~$46 billion). The move required BlackRock to file a Schedule 13G with the SEC, indicating a passive investment rather than an attempt to influence company management. Strategy recently reported a $670.8 million Q4 loss, despite its strong Bitcoin-focused strategy.
Sony’s Soneium Launches First Music NFT Collection in Partnership With Crypto Record Label
Sony’s Soneium blockchain has debuted its first music NFT collection in collaboration with Coop Records, a crypto-based record label. The collection features unreleased music from Tokyo-based producer NUU$HI and is available on Soneium’s NFT marketplace, Sonova, priced at 0.000777 ETH ($2.11) per NFT. Soneium, which launched its Ethereum Layer 2 mainnet on Jan. 14, 2025, aims to promote fair profit distribution for creators. Coop Records, which has moved over 600 songs onchain, shares this vision. While Sony Music Group owns major labels like Columbia Records, no direct crossover with Soneium has been announced yet.
SEC Advances Grayscale’s Solana ETF Proposal, Opens Public Comment Period
The SEC has acknowledged NYSE Arca’s 19b-4 filing to list and trade the Grayscale Solana Trust as an ETF, marking a shift in regulatory stance. The agency has invited public comments for 21 days before deciding on approval, rejection, or further review. Analysts note this is the first time the SEC has acknowledged an ETF filing for a crypto asset it previously labeled a "security." The move follows leadership changes under President Trump, with new SEC Acting Chair Mark Uyeda forming a crypto task force to reassess digital asset regulations, fueling speculation that a spot Solana ETF could be approved by year-end.
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