Crypto Market Pulse - October 21, 2024

LAST WEEK RECAP:

• U.S. retail sales increased 0.4% in September, better than 0.3% expected.
• ECB (European Central Bank) cut 25 bps as expected.
• Trump’s Polymarket odds reached above 60%, the highest since August.
• Trump-backed DeFi project World Liberty Financial raised ~$11M.
• US BTC ETFs recorded 6 consecutive days of inflows.
• SEC approves spot BTC ETF option trading on NYSE, Cboe.
• BlackRock in talks with crypto exchanges such as Binance, OKX, and Deribit to integrate BUIDL token as futures collateral
• Radiant Capital suffered a $50M hack, which is the second hack to the protocol this year, the first hack cost $4.5M.
• The FBI arrested the man it says hacked the SEC's Twitter and posted the fake spot Bitcoin ETF approval.
• ApeChain and its official cross-chain bridge have been launched.

LEGACY MARKETS – DXY

DXY had a strong rebound from the lows. With it now trading at mid-range there’s a good chance it slows down a bit. This should give crypto and equities some relief/ more upside.

LEGACY MARKETS – VIX

VIX is showing more and more weakness. Falling below 21 already gave markets some good upside. Ideally, it falls completely back to the 12-14 range.

BTC WEEKLY VIEW

BTC set up a real reversal as discussed last week. With it trading near all-time highs and crypto being seasonality-wise very strong in Q4 it’s likely a matter of time before we break all-time highs.

ETH WEEKLY VIEW

ETH is close to breaking out of the 2.4-2.7k range. With ETH/BTC also finally staying stable while BTC was rallying to 68k it could be time for ETH to finally catch up.

ETH/BTC

ETH/BTC for how weak it’s been was able to hold the lows while BTC was rallying towards 68-69k. This shows there’s finally some underlying stability/relative strength building in the ratio.

TOTAL3 USD MARKET STRENGTH

As mentioned last week, if BTC could stay stable/rally alts would likely start trending. There have been a handful of alts that started and the stronger BTC stays the more likely more will follow.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC is still ranging. For a full “Altseason”, a range break to the upside would be the start of a massive trend of altcoin dominance over BTC.

SUMMARY

• ALT/BTC continues to show strength with TOTAL3/BTC being on the brink of a macro reversal.
• ETH/BTC showing relative strength while Bitcoin is trending for the first time in a while.

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