State of the Crypto Markets

Macro Overview

• US Unemployment Claims Drop Below Forecast, a Negative Sign for Crypto: Weekly US Unemployment Claims totaled 216K, which is lower than the expected 232 K. This is viewed as a negative sign for the crypto market, as it tends to have a negative relationship with lower unemployment numbers.
• G20 Summit: Global Leaders to Discuss Cryptocurrency As India prepares to host the G20 Summit, cryptocurrency is expected to be a significant topic among world leaders. This summit could pave the way for creating a worldwide set of rules for digital currencies.

Crypto Markets Overview

• Market Movement: This week, the crypto markets experienced a slight 0.4% increase, bringing the total market capitalization to $1.021 trillion. Notably, both BTC and ETH saw a marginal rise of 0.67% and  0.11% respectively. Bitcoin’s dominance stands at 49.26%, while Ethereum’s holds at 19.17%.
• Solana and Visa Collaboration: Solana recently joined forces with Visa, a major player in global payments. Their partnership aims to make using cryptocurrency easier for everyday transactions, potentially leading to more people using it. As a result, Solana’s value increased by 5%.
• Vitalik Buterin Sells MakerDAO Tokens Amid Changes: Ethereum co-founder Vitalik Buterin sold all 500 of his MakerDAO tokens on CoW Protocol, receiving 353 ETH worth about $580,000. This move came after MakerDAO co-founder Rune Christensen revealed plans to rebuild the project on a new blockchain called NewChain, possibly linked to Solana. Following this news, the price of MKR slightly declined.
• JPMorgan’s Digital Currency: JPMorgan Chase & Co., the largest US bank, is exploring the creation of a new digital currency designed to speed up international payments and settlements, according to an insider cited by Bloomberg.
• Ark Invest’s Ethereum ETF Proposal: Ark Invest, in collaboration with 21shares, submitted a proposal to the SEC for an Ethereum-based ETF named ARK 21Shares Ethereum ETF. It aims to provide direct access to Ethereum and will be listed on the Cboe BZX Exchange, using the CME CF Ether-Dollar Reference Rate-New York Variant.
• Bitcoin Education in El Salvador: El Salvador’s Ministry of Education partnered with the nonprofit organization Mi Primer Bitcoin to introduce Bitcoin education into the public school curriculum by 2024.

TOP TOKENS UPDATE

• Cardano’s Transaction Surge: Cardano’s on-chain transaction volume has increased by over 1,700% since late January this year, despite the price not showing significant gains.
• Gala Games Co-founders in Legal Disputes: Co-founders of Gala Games, a blockchain gaming platform, are in court over two lawsuits, one alleging the theft of $130 million worth of Gala (GALA) and the other alleging corporate mismanagement, causing the price of the GALA token to drop significantly.
• Ripple’s XRP Escrow Release: Ripple released one billion XRP from its escrow system, with only a fraction available for sale on the market. The remaining 800 million XRP was re-locked into two different escrows, leaving Ripple with only 200 million XRP for market deployment. These tokens were unlocked by two known Ripple accounts in four transactions.
• Solana and Visa Collaboration: Solana recently joined forces with Visa, a major player in global payments. Their partnership aims to make using cryptocurrency easier for everyday transactions, potentially leading to more people using it. As a result, Solana’s value increased by 5%.

“Big Picture: Upcoming Weeks’ Key Economic Events”

Bitcoin Technical Analysis

Source: TradingView

Summary: 

• BTC was in a sideways range this week. Technical sentiment remains same as the last week.
• Notably, The open interest has been increasing in LTF(lower time frame) .
• Technically, it appears to have tested a trendline breakdown and the 50EMA in the 1-day timeframe, indicating a continued downtrend.
• Support levels include $25,300 (previous week low), $25,170 (previous month low), and approximately $24,800 (3-month low).
• Resistance levels are at $26,800 (previous week high) and $28,100 (50EMA Daily and retest level).

Ethereum Technical Analysis

Source: TradingView

Summary: 

• This week ETH moved in a sideways range. Not much changed, the bearish sentiments(as per technicals) remains the same.
• Notably, a “death cross” has occurred as the 50EMA crossed below the 200EMA, indicating a bearish trend.
• The chart also shows strong adherence to Fibonacci levels. It recently retested the 0.382 level before declining.
• Key support levels include $1,607 (0.5 Fibonacci level), $1,482 (0.618 Fibonacci level), and $1,582 (200EMA weekly and previous week low).
• Resistance is at $1670 &  0.382 Fibonacci level,  around $1,734.

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