Weekly Crypto Market Update - March 4, 2024

LAST WEEK RECAP:

• The U.S. headline PCE increased 0.3% MoM and 2.4% YoY, both as expected. The U.S. Core PCE increased 0.4% MoM and 2.8% YoY, also the same as expected.
• MicroStrategy purchased another 3,000 BTC for ~$155 million averaged at $51,813. Total holding is now 193,000 BTC averaged at $31,544.
• Bank of America’s Merrill and Wells Fargo will offer BTC ETF for Clients.
• BlackRock’s BTC ETF crossed $10 billion in AUM.
• Frax Finance plans to publish proposed revenue sharing within 10 days.
• Blast Mainnet is live.
• Telegram will reward channel owners 50% of ad revenue, with payments made in Toncoin.

LEGACY MARKETS – DXY

DXY is still within the larger range of 106-100. As mentioned for now it likely keeps building more price structure within the range. The longer it stays within the range, the more risk assets have an upside, especially in tech stocks and crypto.

LEGACY MARKETS – VIX

VIX is still failing any attempt at getting out of the lows (13-14 area). As long as that continues, there’s no real downside in the market. It’s something to keep an eye on with lots of AI stocks in parabolic and crypto meme coins also going parabolic.

BTC WEEKLY VIEW

BTC is quite literally under “infinite bid” since the ETF. With prices near ATH’s, it doesn’t look like it will slow down as long as the ETF inflows keep up.

ETH WEEKLY VIEW

ETH finally reached the 3.5K area. With ETH/BTC still being heavily compressed but holding up against the accelerated BTC move, it’s likely that ETH also goes for ATH’s as soon as the ETH ETF narrative picks up more steam and ETH/BTC gains some ground on BTC again.

ETH/BTC

ETH/BTC is still failing every reversal attempt due to the sheer strength that BTC is seeing. Once BTC slows down, the ETH/BTC reversal will likely aid in the ETH/USD ATH rally.

TOTAL3 USD MARKET STRENGTH

TOTAL3 saw a large breakout, mainly and surprisingly led by meme coins. At the moment, all meme coin rallies are sucking all the liquidity out of the other alts.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is still in the range and surprisingly hasn’t really moved even though some altcoins have seen large parabolic movements.

SUMMARY

• BTC is near all-time highs while meme coins are on a market-wide parabolic run.
• At the moment, meme coins are sucking up most of the liquidity, letting other altcoins run dry. When/if meme coins consolidate, a lot of other alts will likely play catch-up given that BTC doesn’t see large corrections.

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