Weekly Crypto Market Update - July 10, 2023

Last Week’s Recap:

• U.S. non-farm payroll increased 209K in June vs 240K expected.
• BlackRock CEO Larry Fink viewed Bitcoin as 'digitizing gold'.
• Multi-chain halted service after $120M hack, CEO still missing for 1 month.
• The Chief Strategy Officer of Binance, Patrick Hillmann left the firm.
• Blur v2 is live with two BIG updates: “Trades now use 50% less gas” and “Trait bidding”.
• Distributed Validation Technology provider ssv.network released mainnet launch schedule.
• Grayscale added LDO to its DeFi fund.
• Azuki Dao's governance token contract (bean) exploited due to a contract vulnerability, and lost 35 ETH nodes.

Legacy Markets – DXY

DXY is still in the larger range. And as mentioned, it will likely keep ranging in this area for a couple of weeks until either 100 or 106 breaks.

Legacy Markets – VIX

VIX saw a little spike last week, which gave big tech its much needed break. Meanwhile, lower cap NASDAQ stocks (Especially 2021-2022 IPO stocks) started catch up moves. VIX likely keeps consolidating at sub-18, as seasonality wise, summers offer low volatility in markets.

BTC Weekly View

BTC has been flat every since the large rally from 25k. There seems to be a lot of headline risk, in regards to certain exchanges. There is also a lot of unknowns regarding companies in chapter 11 and their distribution schedule. For now this zone is clear indecision. Interesting zones would be dips 28-29k region or convincing breakouts above 32-33k.

ETH Weekly View

ETH is also still flat. With ETH/BTC grinding on support and BTC still having institutional limelight after all the ETF filings, we’d like to see the ratio gain strength again. This month, the ETH/BTC CME ratio contracts are launching, which indicates institutional demand for the ratio trade.

ETH/BTC

ETH/BTC ratio is still within the range. As mentioned in previous slide, timing-wise we’re seeking for strength this month with the launch of the CME ratio contract.

TOTAL3 – USD Market Strength

TOTAL3 and has arguably no relative strength at all. There are some outliers and also some idiosyncratic trades (SOL last week after robinhood distribution). Other then that, the top 125 is still a slow bleed for now. The market is waiting for a clear BTC / ETH wave that signals confidence. At the moment we’re at an inflection point with BTC consolidating right on the edge of the range.

TOTAL3/BTC – BTC Market Strength

TOTAL3/BTC is still in a strong relative downtrend against BTC. Until this gets above the green zone, BTC is the clear out performer, and liquidity flows will likely stay in that direction.

Summary

• ETH/BTC ratio futures launching on the CME in July.
• NFT market bounces back after Azuki’s lose over 50% of their value on the elementals mint.
• China consumer inflation eases to zero in June, and producer prices fell 5.4% showing an accelerating trend of lower prices.
  
  

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 any 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