Share this article

Vibe Check: Momentum Building: CoinDesk Indices' Todd Groth

Periodic observations and market musings from Todd Groth, Head of Research, CoinDesk Indices.

Updated Mar 8, 2024, 9:20 p.m. Published Feb 9, 2024, 2:00 p.m.

Regaining Momentum.

We’ve broken past the 1,700 level on the CoinDesk 20 Index as the stronger price trends across smart contracts broadened across the market on Feb. 7. This caused both bitcoin (BTC) and ether (ETH) Trend Indicators - a tool created by CoinDesk subsidiary CoinDesk Indices, to help investors determine where the price are going - to register “Significant Uptrend” again after a short hiatus in “Neutral” and “Uptrend” value.

STORY CONTINUES BELOW

Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters

By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy.

CoinDesk 20 Index has broken above 1,700 level as digital assets prices rallied. (CoinDesk Indices)

Both bitcoin and ether Trend Indicators are showing "significant uptrend." (CoinDesk Indices)

The market was also supported by net inflows into crypto-linked products last week, with over $700 million flowing into the market, primarily focused on bitcoin linked products.

Over $700 million flowed into crypto-linked products last week. (CoinShares, as of Feb. 3)

Its worth noting the rotation we’re seeing between the legacy Grayscale product and newer and cheaper iShares and Fidelity's exchange-traded funds (ETFs), which came online weeks ago. Ex-GBTC, new Bitcoin ETF product holdings now surpass the MicroStrategy treasury, accounting for 192k of bitcoin (about 1% of all future supply).

On the U.S. Dollar front (DXY), the recent increase in U.S. interest rates have helped move USD higher, but the January reversal appears to be stalling as the Fed’s campaign of hawkish rhetoric begins to subside and the market moves out expected interest rate cuts to start sometime into Q2 of this year.

Need more color on what's happening in the markets? Check out these stories:

Bitcoin Crosses $46K as Year of 'Long' Begins, Easing ETF Sell-Off: Over the next few days, East Asia will celebrate the start of the year of the dragon, which is considered to be one of the luckiest and most prosperous animals in the Chinese Zodiac.
Solana Gains More Than Bitcoin as Trader Speculates an 'Extreme Move' Is Ahead: The broader altcoin market also showed signs of rebounding from oversold levels, one analyst noted.
Bitcoin Miner Shares Offer Good Entry Point Ahead of Halving Event: Bernstein: The cryptocurrency has performed well before the halving and is likely to sustain momentum for the rest of the year, leading to new highs, the report said.

Analysis Markets

Todd Groth

Todd Groth was the Head of Index Research at CoinDesk Indices. He has over 10 years of experience involving systematic multi-asset risk premia and alternative investment strategies. Before joining CoinDesk Indices, Todd served as Head of Factor Insights at Premialab, an institutional fintech analytics company, and as a Managing Director at Risk Premium Investments (RPI), a systematic multi-asset asset manager. Before RPI, Todd was a Quantitative Portfolio Manager at Investcorp and began his finance career at PAAMCO, a fund of hedge funds, as a manager within the risk analytics group. Todd holds a BS in Mechanical Engineering from the University of California, San Diego, an MS in Mechanical Engineering from the University of California, Los Angeles, and a Master of Financial Engineering from UCLA Anderson School of Management. Todd holds BTC and ETH above CoinDesk’s disclosure threshold of $1,000.