Crypto Market Pulse - January 6, 2025

LAST WEEK RECAP:

• MicroStrategy bought another 2,138 BTC with an average of $97,837. So far, MicroStrategy holds a total of 446,400 Bitcoins, with an average cost of $62,428.
• Tether Bitcoin reserves have received 7,629 $BTC worth $705.25M from Bitfinex after being dormant for 9 months. So far, Tether holds a total of 82,983 Bitcoins, with an average cost of $36,125.
• U.S. IRS delays crypto tax reporting requirements until 2026, however, this does not mean individuals are exempt from paying taxes on their crypto gains.
• FTX officially started creditor payment on Jan 3rd.
• Binance Labs soon to be rebranded and CZ will participate in the investments on a personal level.
• Do Kwon pleads not guilty to US fraud charges.

LEGACY MARKETS – DXY

DXY has broken through the supply zone with no signs of slowing down. It is now near the highs from November 2022, poses a significant challenge for risk assets.

LEGACY MARKETS – VIX

VIX has recently shown a more subdued performance, with volatility decreasing and the market appearing calmer. This suggests a reduction in fear and uncertainty, which could imply a more stable market environment for the time being.

BTC WEEKLY VIEW

BTC is currently finding support around the 93k level. We expect to see it either rebound upward with picked-up volume or break below 93k to seek the next support level.

ETH WEEKLY VIEW

ETH has found support around the 3300 level and escaped from the consolidating level of 3500. This could signal a potential for further upside if it maintains momentum, but a strong break above 3500 would be needed to confirm a sustained bullish trend.

ETH/BTC

ETH/BTC saw a rebound last week, but given it was a low-volume week, we still need to wait for the market to provide stronger signals.

TOTAL3 USD MARKET STRENGTH

The rebound in TOTAL3 has been more noticeable and robust. We hope to see a strong rally to break through the previous high.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC shows a steady upward momentum after finding support at the descending trendline. However, some consolidation may be occurring as volume stabilizes.

SUMMARY

• Early last week, the crypto market struggled with risk-off sentiment due to low holiday liquidity, a strong DXY, and elevated VIX levels.
• Market conditions improved after New Year, with AI agents and DeSci altcoins leading a broader recovery fueled by Binance listings and returning liquidity.
• Sustained momentum depends on FTX repayment timelines and potential optimism around Trump’s upcoming inauguration.
  

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