Weekly Crypto Market Update - October 17, 2023

LAST WEEK'S RECAP:

• U.S. CPI rose 3.7% YoY in September v.s. 3.6% est, Core CPI rose 4.1% YoY, in line with estimation and down from previous months' 4.3%.
• SEC will not appeal court decision on Grayscale bitcoin ETF.
• Tether appoints CTO Paolo Ardoino as CEO.
• MetaMask added Stripe's fiat on-ramp for U.S. users.
• Deribit will list XRP, SOL, and MATIC options.
• Ferrari started accepting crypto payments for its luxury sports cars in the U.S.

LEGACY MARKETS – DXY

DXY is still consolidating on top of the new range. However, it has seen some signs of slowing down. In reaction to this S&P500 & NQ have regained some upwards momentum. If DXY keeps stalling here or even retraces a bit deeper the entire market likely sees more upside.

LEGACY MARKETS – VIX

VIX kept some elevated levels mainly in reaction to the geopolitical events in the Middle East. In the short term, this initial reaction likely fades out if there are no larger-scale escalations.

BTC WEEKLY VIEW

BTC is creeping close back to $28.6k. However, for the first time in a while, it sustained a Sunday rally and had a larger impulse move. For the last couple of months, large volatility days have almost solely been in US hours and not EU/Asia hours so it’s an interesting change of behavior. The question still stands if it’s again a single trend day or if we can finally see multiple days of impulse behavior.

ETH WEEKLY VIEW

ETH is still grinding on the apex of its 2 largest trends. With volatility at all-time lows, it’s just a matter of time at this point for “real” crypto volatility to kick in, which will result in real trending behavior once more. If ETH can clear 2k it opens up the door for some serious upward acceleration and likely drags the entire altcoin market with it.

ETH/BTC

ETH/BTC as mentioned is still bleeding lower, for now, everything seems to point at BTC leading the initial impulse with ALT/BTC pairings likely taking a hit in the short term.

TOTAL3 USD MARKET STRENGTH

TOTAL3 is also still in range and on support. With BTC expected to go upwards. TOTAL3 likely gets to resistance again.

TOTAL3 BTC MARKET STRENGTH

ALT/BTC is also still weak relative to BTC and building a price range. For now, it seems the entire market is waiting for the next large BTC move.

SUMMARY

• BTC sustaining Sunday price actions and rallying in the early morning hours on a Monday morning seems to indicate there’s interest out of Asia again. For the past months, any day with decent volatility has always been during the US session.
• ALT/BTC is bleeding lower, on what likely will be a BTC initial ETF / halving front-run 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: Rizza Carla Ramos