Crypto Market Pulse - May 27, 2024

LAST WEEK RECAP:

• The SEC has approved Form 19b-4 for eight Ethereum ETF issuers, which gives the green light for ETF ETF to launch; the approval also implies that the SEC explicitly recognizes ETH as not a security.
• While the 19b-4s have been approved, ETF issuers still need the SEC to sign off on their respective S-1 registration statements for the spot Ether ETFs to begin trading officially.
• U.S. House approved crypto FIT21 bill with Democratic support.
• Nvidia passed $1,000 after earning beat and announced a 10-for-1 stock split and an increased dividend.
• Binance stated that it prioritizes small and medium crypto projects in response to the problems caused by listing high FDV and low-circulation tokens.
• Trump's campaign started taking crypto donations.

LEGACY MARKETS – DXY

DXY is still trading within the large 100-106 range. As long as it doesn't break out over the 106-108 area, crypto and equities should have good odds of staying on trend.

LEGACY MARKETS – VIX

VIX is still bleeding lower, having reached yearly lows and levels not seen since the pre-COVID crash.

BTC WEEKLY VIEW

BTC is still in consolidation on ATHs. With the election approaching and both parties seemingly using crypto as a lever for votes, the market should keep a close eye on any serious comments on BTC, which could cause huge price movements.

ETH WEEKLY VIEW

After a surprise ETF approval caught the market off guard, ETH is almost back at yearly highs. With underlying strength finally in the ETH/BTC ratio, we will likely see ETH trending into ATHs before the ETFs go live.

ETH/BTC

As mentioned, ETH/BTC was waiting on the ETF news; with the ETF being approved, it almost rallied to new yearly highs and has broken the downtrend. With ETH/BTC rallying one can expect ETH onchain price action also picking up again.

TOTAL3 USD MARKET STRENGTH

With ETH taking center stage, likely, the general alt market will momentarily lag, and ETH sucks up most of the liquidity. Later on, the market will likely play the typical catch-up move.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC is still working on rotating the downtrend relative to BTC. With ETH now outperforming on the likelihood of ETF approval, it’s only a matter of time before this also starts running.

SUMMARY

• ETH ETF gets a surprise approval.
• With elections later this year, crypto has become a political tool. The market should keep a close eye on this whenever Trump or Biden speak for their campaigns.

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