Weekly Crypto Market Update - January 8, 2024

LAST WEEK RECAP:

• December FOMC Minutes showed rate cuts likely, but path highly uncertain.
• U.S. non-farm payrolls increased by 216,000 in December, better than the expected 170,000; the unemployment rate is 3.7%, lower than the expected 3.8%.
• Fox Business reported SEC held meetings with stock exchange officials.
• Matrixport report expected SEC to reject all ETF applications in January.
• Goldman Sachs in talks to become Authorized Participant for BlackRock, Grayscale BTC ETF.
• Manta Network announced the launch of the “Into the Blue” airdrop program.

LEGACY MARKETS – DXY

DXY is still within the larger range of 100-106. The current outlook suggests a sustained trading pattern within these levels, providing potential upside for both stocks and crypto.

LEGACY MARKETS – VIX

VIX saw a little rally last week with stocks and crypto coming to a temporary halt.

BTC WEEKLY VIEW

BTC is still compressing into the 44k resistance level. With the ETF announcement this week, the price will likely see increased volatility again. Altcoins have already been derisking in anticipation of this event.

ETH WEEKLY VIEW

ETH is also still consolidating above 2k. For now, ETH/BTC has been under a lot of pressure with BTC ETF as the main narrative. However, it’s likely that we see a shift to ETH ETF “next” following the BTC ETF approval. In theory, this should lead to almost an instant reversion in ETH/BTC.

ETH/BTC

As mentioned previously, ETH/BTC should reverse as soon as BTC ETF gets approved IF the “ETH ETF” narrative holds any merit.

TOTAL3 USD MARKET STRENGTH

TOTAL3 is flipping resistance into support. However harsh current altcoin correction may seem from a higher time frame perspective, it’s fairly healthy.

TOTAL3 BTC MARKET STRENGTH

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

SUMMARY

• ETF decision this week, with likely approval on Wednesday as per the latest news from Blackrock.
• Eyes for crypto should be on the ETH/BTC ratio reaction as soon as the news breaks. If approved ETH/BTC should pick up under the “ETH ETF” next narrative.

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