Weekly Crypto Market Update - February 5, 2024

Weekly Crypto Market Update - February 5, 2024
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Weekly Market Updates

LAST WEEK RECAP:

  • U.S. nonfarm payrolls increased 353K in Jan, much better than the estimated 185K; the unemployment rate held at 3.7%, against the estimated 3.8%.
  • Federal Reserve holds interest rate at 5.25%-5.5% range, Powell said cut in March is not “base case”.
  • Ethereum’s Dencun upgrade goes live on Sepolia testnet.
  • FTX expects to pay crypto customers in full, and won’t restart due to a lack of buyers.
  • Binance Web3 wallet launched Bitcoin inscriptions marketplace.
  • Meta shares surged 20% due to soaring profit, better than the expected guidance and its first dividend.
  • Genesis reached $21M settlement with SEC over the Gemini Earn program.

LEGACY MARKETS – DXY

DXY Market | Kairon Labs Crypto Market Maker Trader Insight - February 5, 2024

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. It did see some upward movement within the range. This can put some pressure on weaker assets.

LEGACY MARKETS – VIX

VIX Market | Kairon Labs Crypto Market Maker Trader Insight - February 5, 2024

VIX, as mentioned last week, is also getting stronger together with the dollar. For assets that are trading strong, it’s not a real problem but crypto has become fairly flat after the ETF launches. If DXY and VIX pick up further, it’s a reasonable assumption for BTC and thus, the crypto market sees lower prices in the near term, too.

BTC WEEKLY VIEW

BTC Market | Kairon Labs Crypto Market Maker Trader Insight - February 5, 2024

BTC is still at the top of the macro range and keeps struggling at the 43-44k zone. The market is seeing a lot of alt derisking in anticipation of fresh BTC volatility coming in. For higher prices, the ideal scenario would be BTC flipping over 45k which would confirm further bullish upside. A dip into the mid-30s would also be a good opportunity.

ETH WEEKLY VIEW

ETH Market | Kairon Labs Crypto Market Maker Trader Insight - February 5, 2024

ETH is still trading in total limbo without any clear sign of relative strength. The altcoin market is at the moment tied to the strength of ETH/BTC ratio everytime this picked up a little altcoins showed more strength. For now, ETH/USD is still bullish as long as the market consolidates above the 2k region.

ETH/BTC

ETH/BTC Market | Kairon Labs Crypto Market Maker Trader Insight - February 5, 2024

ETH/BTC has still failed to find any sustained rally on larger time frames. At the moment, ETH/BTC is at a quite critical point; anymore downside and it basically retraces the entire ETF rotation trade, which likely leads to significantly lower prices for the ratio.

TOTAL3 USD MARKET STRENGTH

USD Market | Kairon Labs Crypto Market Maker Trader Insight - February 5, 2024

TOTAL3 just like ETH/USD is consolidating above resistance, which is usually good for a continuation move later on. This likely correlates with ETH if ETH can find relative strength over BTC.

TOTAL3 BTC MARKET STRENGTH

BTC market strength - Kairon Labs Trader Insights February 5, 2024

ALT/BTC is also still failing to break over the resistance of the range. When it finally does break we’ll likely see a more market-wide altcoin rally in the top 100 coins.

SUMMARY

  • Market is in limbo with BTC struggling at the last real point of resistance before all-time highs. Meanwhile, ETH can’t find its footing against BTC leading to altcoins seeing a ton of derisking.

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

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