Weekly Crypto Market Update - February 12, 2024

LAST WEEK RECAP:

• BTC ETFs (ex-GBTC) now hold ~216K BTC, more than MicroStrategy’s 190K BTC holding.
• Starknet launched the STRK airdrop tracker on Voyager.
• Pandora announced major improvements to the ERC-404 standard, which combines ERC-20 and ERC-721 characteristics.
• Solana experienced another outage that halted blockchain transactions for five hours on Feb 6th.
• Wormhole released W token economics.
• EigenLayer TVL is close to $6 billion and entered the top 5 DeFi protocols.

LEGACY MARKETS – DXY

No visible movement. DXY is still within the larger range of 106-100. As mentioned, it's currently expected to continue building more price structures within this range. This could keep going for quite some time, this is overall good for equities & crypto.

LEGACY MARKETS – VIX

VIX completely lost all strength again last week. Afterwards, BTC started running up towards 48k. For now, it doesn’t seem like there is anything in the market that gives the VIX sustained upside.

BTC WEEKLY VIEW

With large net inflows in the BTC ETFs during the overnight sessions, the market is starting to see a front-run narrative of expected inflows for the next day. With BTC near range high, the market is at a large inflection point. For now, the strength seems to be centered around BTC and the majority of the altcoin market is barely moving.

ETH WEEKLY VIEW

ETH is still trading in total limbo without any clear sign of relative strength. The USD strength is at the moment purely carried due to BTC trading so strong.

ETH/BTC

ETH/BTC is on the absolute edge at the moment. If BTC breaks through the local high, a rally towards ATHs seems likely and in tandem, ETH/BTC will likely breakdown lower. This week should be fairly decisive in how this will play out.

TOTAL3 USD MARKET STRENGTH

TOTAL3 just like ETH/USD is being carried by BTC strength. If at any point BTC starts trading weaker, altcoins could have quite a bit of downside in their USD value.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is still in the range. With the relative weakness against BTC, it seems quite likely that the altmarket will finally trend towards the lower end of the range (green box).

SUMMARY

• BTC ETF inflows are leading the market at the moment, with most action centered around BTC and most altcoins lacking any sign of life while BTC is so strong. A couple of sectors do have momentum, especially gaming.
  
• With BTC at a large inflection point (local high), this week will be quite decisive if it breakthroughs and goes for ATHs or if it falls back in range and ALT/BTC ratios regain some strength.
  

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