LAST WEEK'S RECAP:
- Tornado Cash founders charged with money laundering and sanctions violations.
- Eigenlayer TVL increased to $240M after increasing the cap to 100K ETH, it also opened a new NFT series “EigenWorlds” with free minting.
- Base revealed a decentralization blueprint for Superchain.
- Balancer is exploited for nearly $900k after vulnerability warning.
- Pepe price plummeted after the team’s multi-sig transfer worth 16.045 trillion PEPE to CEX.
LEGACY MARKETS – DXY
DXY is back in the large range between 101-106. It does seem that the velocity of the trend is decreasing. The slower DXY rises, the more chance equities & crypto have to keep stable/ trend upwards.
LEGACY MARKETS – VIX
After the Jackson Hole speech, and NVDA blowing out the earnings numbers, VIX saw an immediate drop. This was expected as the market saw a ton of hedging for these events. For now, the macro risk events are back to CPI readings.
BTC WEEKLY VIEW
BTC is still following the 2023 playbook. Meaning, that we can see 1 large trending day (or 2) followed by weeks of small-range trading. For the majors, this is pretty bad. However, for on-chain smaller cap coins, this is great because they thrive in low-volatility BTC environments.
ETH WEEKLY VIEW
With the primary trend broken from January 2023 (Also on BTC), the long-term trend that was established from June 2022, is a little bit lower. Price is currently in between the two. For now, ETH is in the same boat as BTC. This could however change if the ETH/BTC behavior starts switching.
ETH/BTC timing-wise is gearing up for a move in Q4. Relative strength in ETH can boost the altcoin market but also the NFT market. For now, it’s a waiting game in crypto.
TOTAL3 – USD MARKET STRENGTH
TOTAL3 is still in range and cooking. The bull market starts above the red zone, if that level gets broken you’ll likely see a lot of strong trending alts.
TOTAL3/BTC – BTC MARKET STRENGTH
ALT/BTC has seen a very weak bounce so far. With BTC being where it is, it doesn’t seem there are a lot of alts that are thriving. For now this still likely needs more time to develop (See ETH/BTC timing-wise).
- NVDA beats earnings by a wide margin and shows that the AI demand is real.
- While CEX coins can’t seem to hold on to any sort of rally on-chain coins are flying in multiple market segments.
- The broader NFT market seems to be stabilizing, a good indicator for real stability/strength would be ETH volatility and observing how the ETH pricing of most collections reacts.
- BTC and ETH are both still in large ranges and are repeating this year's price action, after every single trend day market gets weeks of low volatility.
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.
Edited by: Rizza Carla Ramos
Kairon Labs provides upscale market-making services for digital asset issuers and token projects, leveraging cutting-edge algorithmic trading software that is integrated into over 100+ exchanges with 24/7 global market coverage. Get a free first consult with us now at kaironlabs.com/contact