Macro Overview
- US CPI (Yearly): The US Consumer Price Index (CPI) reflects a yearly inflation rate of 3.4% for December, higher than the expectation and an increase from November’s 3.1%. The increased inflation has a negative impact on the crypto market.
- US PPI (Monthly): The US Producer Price Index (PPI) for the month reports a -0.1%, falling short of the expected 0.1%. This outcome is considered positive for both the crypto and general markets.
- Weekly US Unemployment Claims Show a Decline: The weekly report on US unemployment claims reveals a decline, with figures coming in at 202k compared to the anticipated 209k. While the drop indicates strength in the job market, it introduces a slight negative influence on the crypto market due to its historical inverse relationship with cryptocurrencies.
Crypto Markets Overview
- Market Movement: This week, the crypto markets experienced a 3.57% uptick, bringing the total market capitalization to $1.634trillion. Notably, BTC saw a rise of 0.53% and ETH saw a rise of 13.03%. Bitcoin’s dominance stands at 51.35%, while Ethereum’s holds at 18.66%.
- SEC Approves First US Bitcoin ETFs, Boosting Market Confidence: In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) grants approval to 11 exchange-traded funds (ETFs) tracking Bitcoin. This significant development marks the first-ever approval for U.S.-listed Bitcoin ETFs, opening doors for broader cryptocurrency market participation. The news catalyzes a surge in BTC prices, touching $49,000 a few days after the announcement, signaling increased investor interest and confidence.
- BlackRock CEO Larry Fink Sees Value in Ethereum ETF: BlackRock CEO Larry Fink expresses the value of having a spot Ethereum (ETH) ETF, following the recent approval of 11 spot Bitcoin ETFs by the SEC. Fink’s acknowledgment of Ethereum’s potential as an ETF asset class signals growing recognition of the broader cryptocurrency space. The approval of Bitcoin ETFs contributes to positive sentiment, leading to notable upside momentum for ETH.
Top Tokens Update
- Worldcoin Sets New Records in Argentina, Sustains High Adoption in India: Worldcoin achieves new adoption milestones in Argentina and maintains robust adoption levels in India, despite pausing its Orb verification service. The platform surpasses 5 million accounts, integrates successfully with Shopify, and releases an update to the verification process. Worldcoin’s continued growth and presence in diverse markets underscore its global impact.
- Injective Launches Volan Upgrade for Real-World Asset Support: Injective, a Cosmos-based blockchain, introduces the Volan upgrade. This enhancement focuses on supporting software related to real-world assets and improving interactions with other Cosmos chains. The Volan upgrade positions Injective as a versatile blockchain platform, emphasizing connectivity and functionality in the realm of real-world assets.
- Fox Partners with Polygon to Combat Deepfakes with ‘Verify’ Tool: Media giant Fox Corp. collaborates with Polygon to combat deepfakes by launching the blockchain-powered tool, ‘Verify.’ This automated tool aims to authenticate genuine articles and images, mitigating the impact of AI-generated media stories or deepfakes. The partnership reflects a proactive approach to addressing misinformation and enhancing media authenticity.
- XRP Surges 12.3% Following Fake BlackRock Filing: XRP experiences a sudden 12.3% surge triggered by a fake filing in Delaware claiming the existence of a “BlackRock iShares XRP Trust.” The false corporate registration causes confusion among XRP holders. BlackRock, a $9 trillion asset manager, promptly clarifies that it did not file the document, underscoring the impact of misinformation on cryptocurrency markets.
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is neutral to bearish.
- This week, BTC experienced a new higher high $49,000 level but didn’t sustain and gave a fall to $43,000(major support level) and is currently holding up there. On a macro level, it appears bearish if it doesn’t bounce back from here, as ‘sell the news’ prevails in the market.
- This bearish outlook is supported by patterns in lower timeframes and the overall bearish price action/indicators. Key support levels to consider are around $42,000 (50EMAD), $40,600, and $37,800. On the upside, resistance levels include $44,500 and $48,000.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears bullish.
- This week, ETH gave a huge upside move and outperformed BTC as the ETH spot ETF approval speculation increases. Technically, ETH has breached the major $2450 resistance level and made a new higher high, currently holding above $2500 and 20EMA D.
- Significant support levels include $2450 (S/R flip), $2280 and $2175, while resistance levels to watch are at $2900, $3300 and $3540.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.
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