Crypto Market Pulse - July 22, 2024

LAST WEEK RECAP:

• Crypto rallied following the unsuccessful assassination attempt on Donald Trump.
• Trump picks crypto-friendly J.D. Vance as his VP.
• President Joe Biden drops out of the 2024 presidential race.
• Kraken confirms receipt of Mt. Gox Bitcoin; creditors are to receive it before August.
• Reddit poll showed that 55% of Mt․Gox customers do not intend to sell their BTC.
• CBOE confirmed that five ETH ETFs, including VanEck, Invesco, Fidelity, 21Shares, and Franklin Templeton, will begin trading on July 23.
• Binance.US receives court approval to invest $40 million in US Treasury bills.
• Grayscale launches new decentralized AI fund.

LEGACY MARKETS – DXY

DXY has kept trending lower. Since it’s just trading in its 2-year range, the longer it trades in it, the smoother equities and crypto should be going forward.

LEGACY MARKETS – VIX

VIX spiked in the early morning on Monday, likely as a consequence of Biden's withdrawal from the presidential elections.

BTC WEEKLY VIEW

All the signs seem positive for BTC at this point, with Trump using it as a major political ploy. Due to all the events surrounding the elections, attention will be high on crypto for the coming months.

ETH WEEKLY VIEW

With the ETH spot ETF going live on July 23rd, ETH will likely vacate the 3-4k range. If inflows are large enough, ETH could quickly trade upwards to ATHs.

ETH/BTC

ETH/BTC is surprisingly weak going into tomorrow's ETF launch. It seems BTC’s strength is coming from comments made about the elections. For ETH/BTC outperformance, the market likely needs large inflows on the ETF launch.

TOTAL3 USD MARKET STRENGTH

Alts are mostly still building new bases, with some select ones really outperforming. But most, after the large price declines, are just building larger ranges for now, with BTC and ETH taking center stage.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC is still chopping near range lows. For a general alt season to start, we’d want this ratio to break out of the range (above the red-marked area)

SUMMARY

• A lot of favorable points seem to be converging for the crypto market. The Fed is hinting more and more at rate cuts, which will likely result in a first cut in September. Together with the launching of the ETH ETF and BTC being a major topic for the elections, it seems attention to crypto will return sooner rather than later.

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 Joshua Van de Kerckhove

Edited by: Marianne Dasal