Crypto Market Pulse - May 21, 2024

LAST WEEK RECAP:

• The US CPI increased 3.4% YoY in April, same as estimated and lower than previous 3.5%. The monthly CPI increased 0.3%, lower than 0.4% estimated.
• The US Core CPI increased 0.3% MoM and 3.6% YoY; both are the same as estimated. The annual reading was the lowest since April 2021, while the monthly reading was the smallest since December.
• The US PPI increased 0.5% MoM in April v.s. 0.3% estimated, and core PPI increased 0.5% MoM in April v.s. 0.2% estimated. However, the March reading was revised from an initial 0.2% to -0.1%. April's annual PPI was 2.2%, and its annual core PPI was 2.4%.
• GameStop shares soared again as 'Roaring Kitty' became active on social media after 3 years. The major memecoins' price also moved higher.
• Wisconsin Investment Board announced a $162 million investment in BTC ETF.
• US BTC ETFs recorded five consecutive days of inflows last week.

LEGACY MARKETS – DXY

DXY, after showing early signs of weakness last week, has now entirely rejected its range high and is trending downwards again.

LEGACY MARKETS – VIX

VIX has also completely fallen back into lower levels posing no threat at the moment to the market. With SP500 making new all time highs it seems that most markets will go higher.

BTC WEEKLY VIEW

After two months of consolidation ATHs, BTC saw a big impulse to move upward. This will most likely result in a continuation of the uptrend. WCrypto is now also entering the realm of political issues with elections later this year.

ETH WEEKLY VIEW

Monday ETH ETF approval ratings from analysts surged from 25% ->75% causing an instant rally on ETH as the market had not priced in any chance of approval in May. With crypto becoming a political weapon for the elections after Trump mentioned it, it seemingly has put pressure on the SEC to rush an approval. Deadline is 23rd of May.

ETH/BTC

The ETF speculation seems to have also bottomed ETH/BTC ratio for now. It’s still in a larger downtrend but if the ETH ETF gets approved it likely keeps outperforming BTC for quite some time.

TOTAL3 USD MARKET STRENGTH

With ETH taking center stage after the increased odds of ETF approval, it’s likely that a more broad altcoin rally will happen shortly after. Ethereum strength in previous cycles has always been a large precursor to market wide altcoin seasons.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC is still working on rotating the downtrend relatively to BTC. ETH is now outperforming in terms of the likelihood of ETF approval. It's only a matter of time before this also starts running.

SUMMARY

• ETH ETF approval odds jump from 25% to 75%. Issuers are making last-minute adjustments to their filings. The deadline is the 23rd of May.

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 is prepared by Kairon Labs Traders: Joshua van de Kerckhove, and Patrick Li

Edited by: Marianne Dasal