Crypto Market Pulse - January 27, 2025

LAST WEEK RECAP:

• Trump signed a crypto executive order, establishing a Presidential Digital Asset Market Working Group to strengthen the US leadership in the digital finance sector.
• Trump announces a $500 billion AI infrastructure investment in the US.
• $MELANIA meme token was issued SEC Chair Gary Gensler officially resigns.
• President Trump officially pardons Silk Road founder Ross Ulbricht.
• Binance Labs rebrands to Yzi Labs.
• Microstrategy bought another 11,000 BTC with an average of $101,191. So far MicroStrategy holds a total of 461,000 Bitcoins, with an average cost of $63,610.
• Bank of Japan raises rate by 25 bps to 0.5%.
• Grayscale files for SOL and LTC ETF.

LEGACY MARKETS – DXY

The DXY had a significant reversal at a key level last week, which could either be a pullback for this breakout or a potential trend change.

LEGACY MARKETS – VIX

Before Trump took office, the VIX didn’t see significant volatility. The market's expectations last week were relatively mild.

BTC WEEKLY VIEW

BTC hit a new high last week, and the volume saw a significant increase, but the trend didn’t sustain and it looks more like a false breakout right now. We’re hoping to see BTC consolidate above 100k level before making another attempt at breaking the previous high.

ETH WEEKLY VIEW

ETH still hasn’t followed BTC’s price movement with any upward breakout, and it was consistently suppressed near the trendline last week.

ETH/BTC

ETH/BTC is still at a very low level. We’ll need to wait for it to consolidate at the bottom for a while before it can potentially reverse upward.

TOTAL3 USD MARKET STRENGTH

TOTAL3 has continued to weaken after reversing from the previous supply zone. We need to keep an eye on the key support levels below.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC showed some volume during the upward rebound but then quickly dropped. We need to wait for a proper rebound to confirm whether it can continue upward.

SUMMARY

• BTC reached a new all-time high but retraced to around $100K, reflecting the market’s fragile sentiment following Trump’s inauguration.
• ETH continues to lag behind BTC in terms of price action, showing weakness near its trendline.
• Altcoins in general, have faced significant declines, particularly due to the liquidity drain caused by the $TRUMP and $MELANIA token issuance.
• While the market is near key support levels, further upside momentum depends on Trump’s potential crypto-friendly policies, which could drive a rally. For now, the market remains vulnerable to short-term downturns.
  

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