Chart of the Week

CoinDesk's weekly ‘Chart of the Week’ highlights topical digital asset developments with vital commentary and analysis.

This week

In this week's Chart of the Week, we examine BTC's daily returns so far in 2025. More days have posted positive returns than negative, highlighting Bitcoin’s resilience in the market. Monday has been the strongest day, averaging a 1.55% gain, followed by Friday’s 1.06%, suggesting bullish momentum leading into the weekend. Meanwhile, Sunday recorded the most extreme downside, with an average return of -1.32%, making it the weakest day of the week.

BTC’s price movements have been largely influenced by key announcements from the Trump administration and a series of macroeconomic events, including the release of CPI data as well as the latest FOMC meeting. Despite these mid-week catalysts, Wednesday and Thursday (date)  returns remained relatively flat, at 0.12% and 0.11%, respectively.

Previous Charts of the Week

In this week's COTW, we examine the daily spot trading on centralised exchanges. On February 3rd, spot trading volumes on centralised exchanges reached a new all-time high of $225bn, surpassing the previous high of $222bn recorded on December 5th, 2024. The heightened volume on the spot markets was driven by a sell-off in major digital assets amid escalating trade tensions between the US and its key partners—Mexico, Canada, and China.

Bitcoin retraced to range lows of $91.7k, while altcoins experienced an even steeper decline, with Ethereum declining to levels last seen in August 2024. However, digital assets swiftly rebounded as market sentiment improved following the announcement of a one-month delay in tariff implementation.

In this week’s COTW, we analyse the market cap dominance of altcoins since 2024. After peaking at 51.3% in early 2024, altcoin dominance steadily declined, reaching a yearly low of 41.4% on November 20th, just ahead of the U.S. elections. However, the altcoin market share rebounded to a multi-quarter high of 47.1% in early December.

Despite this recovery, Bitcoin's consolidation within the $100k to $107k range has pressured altcoin prices, combined with macroeconomic headwinds and uncertainty in TradFi indices, pushing their dominance down to 42.1% - the lowest level since November 22nd.

In this week's COTW, we examine the Solana to Ethereum Price ratio since 2021. Following the launch of President Trump's memecoin, $TRUMP, on the Solana network, the SOL/ETH ratio surged to 0.091, driven by the substantial increase in the coin's price.

This also marked a new all-time high for the metric, surpassing the previous high for SOL/ETH ratio of 0.077 recorded in November. Ethereum has lagged behind other alternative Layer-1s in this cycle, with on-chain DEX trading activity on Solana reached an all time-high of $39.2 billion on Sunday.

In this week's COTW, we examine the 30-day rolling correlation between the S&P 500 (SPX) and Bitcoin (BTC). Recent price movements have seen Bitcoin more closely tracking U.S. TradFi indices, driven by positive economic data hinting at a potential slowdown in rate cuts this year.

The SPX-BTC 30-day correlation has risen to 0.57 from 0.27 on December 23, highlighting the macroeconomic environment's impact on risk-on assets like equities and Bitcoin. This marks the highest point since November's quarterly peak of 0.63, which followed the U.S. presidential elections.

In this week's COTW, we examine trading activity on centralised exchanges, which ended 2024 on a high note, with both spot and derivatives trading volumes reaching new all-time highs in December at $3.72tn and $7.39tn, respectively. This marked the third consecutive monthly increase, driven by multiple positive catalysts, including the US presidential election.

2024 recorded the highest yearly trading volume on centralised exchanges, surpassing the previous record set in 2021, with an aggregate volume of $75.8tn. Derivatives markets continued to dominate trading activity, holding a market share of 69.2% for the year.

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