Weekly Crypto Market Update - July 24, 2023

LAST WEEK’S RECAP:

• Despite exceeding expectations in terms of EPS and revenue, Tesla's operating margin experienced a decline to 9.6% in Q2.
• During Q2 2023, Tesla confirmed that they did not sell any of their $333 million worth of Bitcoin holdings.
• Gnosis made headlines by launching Gnosis Pay and Gnosis Card, the world's first decentralized payment network and self-custodial debit card.
• Uniswap shook the market by introducing UniswapX, a cross AMM protocol that garnered significant attention.
• The U.S. Senate stepped towards regulating DeFi protocols by proposing a bill to implement AML policies on their platforms.
• Coindesk is finalizing a $125 million sell deal with an investor group.
  

LEGACY MARKETS – DXY

DXY is now within the new range between 101-98. As long as DXY just trades within this range, it should provide favorable conditions for risk assets to continue. However, the market is closely monitoring big tech earnings, which could be a significant risk factor.

LEGACY MARKETS – VIX

For the past few weeks, the VIX has shown little activity, and volatility in major cryptocurrencies has remained exceptionally low for over a month. At some point, we’d expect crypto to catch up on the current trend. Low-quality Nasdaq tech stocks have started rallying since NVDA and AAPL started slowing down. We’d expect crypto to exhibit some correlation to this movement.

BTC WEEKLY VIEW

BTC has been range-bound for weeks. Interesting areas would be a reaction at the 28k area or a definitive breakout above 33k. Meanwhile, interesting actions are happening on-chain in smallcap altcoins.

ETH WEEKLY VIEW

ETH is currently holding a similar position to BTC. However, there has been a surge in on-chain activity due to the emergence of UNIBOT. Additionally, low-cap cryptocurrencies are gaining increasing momentum in the market.

ETH/BTC

ETH/BTC ratio is still weak. The reaction so far at range low has been less than expected. At this point, it just seems like a lack of action in general on large-cap coins.

TOTAL3 – USD MARKET STRENGTH

TOTAL3 is also experiencing a period of consolidation. However, there has been a significant increase in on-chain activity, particularly in the lower-cap coins. The gambling narrative has gained traction and is being fueled further by actions surrounding UNIBOT.

TOTAL3/BTC – BTC MARKET STRENGTH

The high-cap cryptocurrencies appear to be closely approaching significant price levels. Should they surpass these levels and start trading above them, it is expected that the overall market will gain substantial momentum, with altcoins likely outperforming BTC. This outperformance is already being observed in smaller-cap cryptocurrencies.

SUMMARY

• On-chain small-cap altcoins have been kicking off with the rise of UNIBOT.
• The top 100 is still struggling. However, with the large XRP move and the launch of Worldcoin (Sam Altman - OpenAI CEO), we can expect some media attention that will quite possibly reactivate interest in the altcoin space.
• The main risk in the current market is big tech earnings. Last week, TSLA saw a huge drop, causing BTC and other parts of the market to have significant pressure.
  
  

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