1/ In crypto, everything is driven by sentiment. The sentiment has drastically changed in January IMO. Nearly all macro indicators are up month to month and most are hitting 6-month highs. Let’s look at the data
2/ First - legitimate spot volume increased from $39.83B to $67.53B. That’s a 70% increase and a 5-month high. The largest month-to-month increase since April - that was right before the rise to $13k. 
3/ Bitcoin perp volume jumped by 55% in January. That’s the first increase in 8 months.
4/ Traffic on cryptocurrency exchanges also saw a big bump. This is a decent proxy for retail interest. Web visits increased from 79.8M to 94.3M. First increase since April.
5/ Adjusted value settled also saw an in increase, albeit milder. It increased by 19.7% from December.
6/ Bakkt has continued to attract more volume ever since launching in September. Open interest is currently at all-time-high of $15M. Its average daily volume reached ATH in January.
Sep - $1.21
Oct - $2.15
Nov - $15.16
Dec - $21.55
Jan - $26.45 (18% increase)
Sep - $1.21
Oct - $2.15
Nov - $15.16
Dec - $21.55
Jan - $26.45 (18% increase)
7/ Bakkt is still small compared to CME though. On average, CME’s volume was 17x higher than Bakkt’s. CME’s daily average volume increased by 144% in January. Moreover, open interest is now nearly 3x what it was at the end of December.
8/ Overall, the market is showing signs of reversed sentiment. This doesn’t happen that often. Last time I remember was last April. Will be keeping my eye on all these figures for next month as well
