Weekly Crypto Market Update - December 4, 2023

LAST WEEK RECAP:

• Powell stated interest rate is “well into restrictive territory”, market priced in over 100 bps cut in 2024
• MicroStrategy has acquired an additional 16,130 BTC for ~$593.3 million at an average price of $36,785, as of Nov 29th, MicroStrategy holds 174,530 $BTC at an average price of $30,252.
• FTX received court approval to sell $873M worth of Grayscale, Bitwise Trust Assets.
• Starknet Foundation confirmed eligibility cutoff date for the airdrop has been set.
• Chainlink Staking v0.2 went alive on Ethereum mainnet.
• IOTA announced a $100M ecosystem fund.

LEGACY MARKETS – DXY

DXY is for now still stuck in its larger range without any sight of a potential exit any time soon. This should give most markets a lot of room to run even more risk on stuff (lower cap tech stocks and also broader altcoin rallies).

LEGACY MARKETS – VIX

VIX still bleeding lower & DXY being within the large range should give markets room to move further without too many hiccups.

BTC WEEKLY VIEW

Last week, we outlined 2 potential scenarios, it seems BTC is very much doing the second with the first really large resistance since 30k coming up at the 44-46k area. Ideally for altcoins BTC stalls and corrects at that point and creates a new range. This could finally give room for ALT/BTC pairings to garner a lot of explosive strength.

ETH WEEKLY VIEW

As mentioned last week ETH building price structure on top of 2k was quite bullish. Now that it has left almost a 2-year range the expansion could go on for quite a while. The first real price resistance is around the 3k zone. The strength in ETH has also revived NFT with liquidity flowing back into them.

ETH/BTC

ETH/BTC is still weaker and still can’t outperform when BTC gets somewhat more volatile. Most likely it will pick once BTC’s initial wave is finished and capital flows from BTC into ETH to speculate more on the chain.

TOTAL3 USD MARKET STRENGTH

TOTAL3 is also on the brink of breaking back into its 2021 range. If all these factors align (BTC consolidation after ±44k, ETH/BTC picking up) then TOTAL3 should see a massive move upwards, this of course means a massive alt season. The timing for this seems to be EOY into Q1. Also, the seasonality of January - March in bull markets has always been great for altcoins.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is still in the same range. And with BTC likely tagging 44k soonish, we think that at the green zone, ALT/BTC should bottom out and be the start of a potential alt season on top of BTC strength.

SUMMARY

• BTC breaks back over 40k.
• ETH breaking loose of the 2k area and BLUR outperforming is injecting liquidity back into NFT starting of a small rally so far.

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: Rizza Carla Ramos