Weekly Crypto Market Update - December 18, 2023

LAST WEEK RECAP:

• U.S. CPI increased 3.1% YoY in November, same as expected, the lowest level since June of this year.
• U.S. Fed kept interest rate unchanged in December FOMC meeting; anticipates 3 cuts in 2024.
• Ledger Connect Kit was compromised, allowing attackers to drain users’ wallets on dozens of decentralized apps.
• Solana surpasses Ethereum in DEX Volume with BONK price rally.
• Worldcoin launched “World ID 2.0", the new version is integrated with Shopify, Mercado Libre, Reddit, and Telegram.
• P2P platform NFT Trader got hacked; 37 BAYC, 13 MAYC, 4 World OF Women, and 6 VeeFriends worth 1,080 ETH stolen.

LEGACY MARKETS – DXY

DXY is still in the range and has been trending lower. As long as DXY stays within range or even lower, stocks and crypto will likely keep their upward trend.

LEGACY MARKETS – VIX

No visible movement. VIX still bleeding lower & DXY being within the large range should give markets room to move further without too many hiccups. Note that VIX is approaching levels not seen since the lows before COVID rally.

BTC WEEKLY VIEW

BTC is still struggling at the 44-46k. With BTC slowing down, we’re also seeing alts pullback. This will likely keep going until we see BTC put in a solid range low. A first interesting zone should be 37-39k.

ETH WEEKLY VIEW

ETH is still over 2k. With BTC slowing down, we’d like to see ETH/BTC picking up once BTC finds solid support levels. If ETH/BTC picks up, the ETH/USD pair likely stays above 2k before taking over into Q1.

ETH/BTC

ETH/BTC is compressing right on range lows. It's likely that the ETH/BTC market will soon see a large volatility expansion. This also aligns with our idea of BTC/USDT stalling and rotating into ETH.

TOTAL3 USD MARKET STRENGTH

No visible change. TOTAL3 flipped back into the 2021 price range. With BTC pulling back a bit and the market being quite heated in the short term, we’d expect some sort of consolidation here before the trend continues.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC still in the same range. In line with our ETH/BTC expectations, the ALT/BTC likely also commences in tandem.

SUMMARY

• Large NFT exploit over the weekend sees multiple wallets drained that have used NFT Trader
• BTC stalls at 44k and the market slowly cools off after weeks of good price action.

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