Weekly Crypto Market Update – June 5, 2023

Last Week’s Recap:

• Biden signed the debt ceiling bill into the law
• U.S. job number in May increased by 339K, better than the 190K est.
• The US unemployment rate rose to 3.7% v.s. 3.5% (estimated)
• Offshore Chinese Yuan stablecoin CNHC Team reportedly arrested in China.
• Nansen announced a 30% job cut.
• Hong Kong's Securities and Futures Commission (SFC) began accepting crypto exchange license applications on June 1st.
• Gate io issued a warning of legal action against those spreading rumors of bankruptcy without any concrete source.

Legacy Markets – DXY

DXY is quite strong. Moving close to the range high now at 106. With equities still holding a trend even though DXY is strong, there’s a good possibility that crypto is actually “lagging” at this point. And will see a relative repricing to what we’ve seen in S&P500 & Nasdaq.

Legacy Markets – VIX

VIX has reached its lowest levels since June 2021. Correlations across the board should drop and give breathing room to lagging assets. Think about weaker tech stocks, but crypto.

BTC Weekly View

BTC is still stuck under 30k. The price structure has likely matured enough by now to see an actual expansion that we think can happen in the near future.

ETH Weekly View

ETH is still holding the 1.8k area perfectly as support. As mentioned with equities being so far ahead of crypto now, we think it’s a matter of time before crypto makes the “catchup” move.

ETH/BTC

ETH/BTC seems to find relative strength when BTC is low in volatility. We’re more interested in seeing its behavior when crypto starts to catch the trend again.

TOTAL2 – USD Market Strength

TOTAL2 is still struggling under the 2021 support just like BTC. End of last week some alts have started catching some strength. With multiple L1/2s moving.

TOTAL2BTC – BTC Market Strength

TOTAL2/BTC: As mentioned in the previous part, alts started catching some strength end of last week. This is also clearly visible in the TOTAL2/BTC ratio. If BTC stays low volatility for longer it’s likely that the stronger alts will start running again.

Summary

• Crypto lagging equities. If equities can keep strength there’s a high probability that crypto will play catchup soon.
• Select altcoins already started moving with multiple L1/2’s, LSD, Metaverse/Gaming coins.
• Apple is revealing its mixed reality headset this week, this could boost the metaverse narrative.
• AI coins have been regaining strength in the wake of NVDA’s new ATH.
  

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