Weekly Crypto Market Update - April 22, 2024

LAST WEEK RECAP:

• BTC completed the fourth halving, the BTC block reward was reduced from 6.25 BTC to 3.125 BTC
• Iran played down reported Israeli attack, signalled no retaliation
• Runes Protocol launched on Bitcoin, the active minting caused a surge in transaction fees
• Worldcoin (WLD) to launch World Chain as L2 on Ethereum
• Tether expanded USDT to TON blockchain

LEGACY MARKETS – DXY

DXY is still on top of the range. If the strength keeps persisting - and it would try to vacate the range to the upside - crypto and equities could be pressured more. If it breaks down and falls back in range, it will open the window for the rallies in all sectors to continue.

LEGACY MARKETS – VIX

The elevated VIX levels have opened the door for larger corrections on both equities and crypto. Ideally with the initial shock of Middle East escalation gone, the VIX retraces again and the market shakes off the initial scare.

BTC WEEKLY VIEW

As mentioned last week, we noted the strength BTC had on the altcoin wipeout. And for now, it still seems like BTC is just consolidating on the previous all-time high before continuing the trend.

ETH WEEKLY VIEW

As mentioned last week, the drop was likely a good “buy the dip” moment. With markets shaking off the geopolitical scare and if no further escalation happens, we’d expect the trend to pick up again relatively soon.

ETH/BTC

ETH/BTC is nearing its long-term trend. And it's being quite resilient in going lower, with the BTC halving out of the way, the next big narrative in crypto should be the ethereum ETF.

TOTAL3 USD MARKET STRENGTH

TOTAL3 on the wipeout was a great buying opportunity. Lots of altcoins are setting up for trends - this coupled with ALT/BTC ratios finally seeming ready to rotate against BTC should be the start of a market-wide alt season.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC general index seems to be setting up for a strong rotation. With BTC still consolidating on ATHs, it seems only a matter of time for alts to finally start going. Timeline-wise, it seems the market is at a similar point as January 2021.

SUMMARY

• Market shakes off the initial geopolitical scare in the Middle East
• Next big crypto narrative should be the Ethereum ETF.
• ALT/BTC ratios setting up for market-wide “Alt season”
  

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