Crypto Market Pulse - February 17, 2025

LAST WEEK RECAP:

• U.S CPI data was hotter than expected: CPI YoY 3% vs 2.9% expected, Core CPI YoY 3.3% vs 3.1% expected. PPI data did not alleviate concerns- PPI MoM came in at 0.4% vs 0.3% expected.
• During testimony, Fed’s Powell reiterated no rush to reduce interest rates, and mentioned only using Quantitative Easing when rates are at zero.
• Trump elaborated on reciprocal tariffs- which will include considering countries that use VAT, include provisions on countries that provide subsidies deemed to “take economic advantage of the United States”, and include provisions on “Nonmonetary Tariffs”.
• Grayscale filed for Cardano ETF with NYSE.
• Trump Plans to Pick a16z's Quintenz as Head of CFTC.
• Opensea announces $SEA token.
• SEC acknowledges XRP ETF filling.
• Gemini and Bitgo to weigh IPO.
• 21Shares proposes staking for ETH ETFs, and Crypto Task Force discusses inclusion of Staking in ETPs with Jito Labs and Multicoin Capital.
• Hyperliquid announces “Hyperunit”; a decentralized asset creation layer on Hyperliquid that will enable spot tokens to flow between Hyperliquid and other native blockchains.
• Argentina’s Javier Milei posts coin “Libra” on social media before removing posts after and retracting any connection to tokens- token reached 4.5b in market cap before retracing to ~120m.

LEGACY MARKETS – DXY

After two unsuccessful attempts to break upwards, DXY has shown a noticeable pullback and is now seeking support downwards.

BTC WEEKLY VIEW

BTC continues to consolidate within last week's price range, moving sideways. The market still requires some catalysts to determine its subsequent direction. Any downward assumptions are premature until this top-like formation is breached.

ETH WEEKLY VIEW

ETH finally saw a bullish rebound last week, but the price remains within the range of lateral adjustment.

ETH/BTC

BTC's price has not rebounded significantly, whereas ETH has shown a noticeable rebound. It is crucial to monitor whether ETH will pick up some upward momentum this week to outperform BTC.

TOTAL3 USD MARKET STRENGTH

The standout performer this week is TOTAL3, which has rebounded to the vicinity of the previously breached trendline. It is imperative to closely observe whether the price will reverse at this key level.

TOTAL3 BTC MARKET STRENGTH

Similar to ETH/BTC, while BTC has not shown a significant rebound, both ETH and TOTAL3 have experienced relative rebounds this week.

SUMMARY

• BTC's rebound indicates the market is still processing macroeconomic uncertainties, particularly inflation and interest rate policies. The focus remains on the Fed's rate path and potential political pressures from Trump, which could shape BTC's trajectory in the coming weeks.
• ETH showed stronger relative performance compared to BTC, rebounding more noticeably. This resilience suggests potential for short-term outperformance, especially if it gains upward momentum. Catalysts like ETF developments or network upgrades could further support ETH.
• Altcoins, especially on the BNB chain, saw speculative activity driven by memecoin hype, but spikes were short-lived. While major altcoins weren't significantly impacted, new memecoin launches could pressure liquidity. Altcoin performance remains volatile and speculation-driven.
• Despite macroeconomic challenges, the crypto market showed resilience. A sustained uptrend depends on clearer Fed signals and political developments. Short-term upside surprises are possible, but the market remains sensitive to macroeconomic and political uncertainties.
  

DISCLAIMER:

The information in this report is for information purposes only and is not to be construed as investment or financial advice. All information contained herein is not a solicitation or recommendation to buy or sell digital assets or other financial products.

This post was prepared by Kairon Labs Trader Patrick Li and Travis Su.

Edited by: Marianne Dasal