Weekly Crypto Market Update - April 8, 2024

LAST WEEK RECAP:

• U.S. nonfarm payrolls increased 303K in March, well above 200K estimated. The unemployment rate edged lower to 3.8% as expected.
• BlackRock added Goldman Sachs, Citigroup, UBS as APs for Bitcoin ETF
• U.S. Department of Justice transferred 2000 Silk Road BTC to Coinbase
• Ripple to launch USD stablecoin
• Wormhole initiated airdrop claim of W token, which also started trading in Binance
• Ethena’s synthetic dollar passed $2B market cap
• Bitcoin Cash (BCH) completed halving

LEGACY MARKETS – DXY

As we mentioned before, DXY is likely to stay in the 100-107 range which will help a risky asset rally. Currently consolidating just under a big resistance level, any rally into resistance could put some pressure on stocks and crypto.

LEGACY MARKETS – VIX

VIX is trading higher levels again this will open up a downside for markets if it sustains. However, if it fades again everything should be good to proceed or at least hold current levels.

BTC WEEKLY VIEW

BTC again is pushing for all-time highs this morning. With the nonstop ETF flows it seems like BTC will keep walking higher in a low-volatility manner.

ETH WEEKLY VIEW

ETH continued consolidating above resistance turned the support zone at 3.2K and started catching up with BTC this morning. ETH is likely to test the next 4k major resistance once it starts picking up with more popular re-staking and ETF narratives in May.

ETH/BTC

ETH/BTC is still holding near $0.05 key support, and we started seeing a rebound from this level. ETH/BTC is still expected to move higher from here given more ETH-related narratives down the road.

TOTAL3 USD MARKET STRENGTH

TOTAL3 started picking up after the leveraged longs were cleared and AI, meme, and BTC ecosystem is leading the way. We still expect a large upside move in alts once the BTC dominance ratio stabilizes and ETH starts running as well.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC still stays within the current range, as mentioned before, we expect the ratio to continue the breakout and have a major upside and test the resistance in the chart once BTC dominance stabilizes.

SUMMARY

• The market was undergoing a rate cut re-pricing due to rising inflationary pressures last week
• BTC is building more bullishness given increasing BTC ETF inflows and reduced leveraged with flattening perp funding rate
• The anticipated move resulting from the BTC halving event may need the injection of new macro liquidity which is largely dependent on new inflation data reading.
  

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