State of the Crypto Market

• Market Movement: This week, the crypto market experienced a -0.87% fall, bringing the total market capitalization to $3.12 trillion. Notably, BTC saw a fall of -0.26% and ETH saw a fall of -0.10%. Bitcoin’s dominance stands at 61.20%, while Ethereum’s holds at 10.38%.
• Bybit Multi-Signature Wallet Hacked for $1.4 Billion ETH: Bybit’s multi-signature wallet was hacked, resulting in a loss of $1.4 billion worth of ETH, reportedly by North Korea’s Lazarus Group. Bybit officials confirmed the incident on Twitter, with the CEO assuring users that their funds remain secure on a 1:1 basis. CoinDCX is unaffected by this event, as it has no relation to Bybit, and user funds on the exchange remain fully secured.
• Pi Network Finally Goes Live, but PI Coin Faces Strong Selling Pressure: Pi Coin officially went live, but its price dropped significantly after listing. The decline was driven by the contrast between speculative IOU prices and the actual market price, leading to a sell-off. Additionally, early adopters and miners likely offloaded their holdings in large volumes, increasing supply pressure. Concerns about Pi Coin’s long-term viability have also made investors cautious, further contributing to the price drop.
• SEC to Drop Lawsuit Against Coinbase: Coinbase CEO Brian Armstrong announced that the SEC intends to dismiss its lawsuit against the exchange with no fines or business changes. The lawsuit, filed in June 2023, alleged that Coinbase operated as an unregistered securities exchange and failed to register its staking service.

Top Tokens Update

• Maker (MKR) Surges After $156M Token Burn: Maker (MKR) rallied following a massive $156.77 million token burn, significantly reducing its circulating supply. Whale Alert reported that wallet ‘0xf65’ executed eight large burn transactions on February 20. The supply reduction has fueled optimism among market participants, reinforcing a bullish outlook for MKR.
• Litecoin (LTC) Poised for Potential Breakout Amid ETF Speculation: Litecoin’s market cap has surged 46% in the past two weeks, with daily transaction volume rising from $2.8 billion in August 2024 to $9.6 billion recently. The key catalyst is speculation around a Litecoin ETF, as CoinShares has filed for a listing on Nasdaq, currently under SEC review. Analysts estimate a 90% probability of approval by the end of 2025, fueling bullish sentiment around LTC.
• Ethereum Fees Drop by 70%, Potentially Boosting Network Activity: Ethereum’s transaction fees have fallen over 70% this week, with daily fees dropping to $7.5 million from $23 million. This decline is attributed to a recent gas limit increase, which expanded block capacity and reduced congestion. Historically, lower fees have driven higher network usage, as seen in 2021 and mid-2023. If this trend continues, Ethereum could experience increased on-chain activity, though the key question remains whether this demand will be sustained.

“Big Picture: Upcoming Weeks’ Key Economic Events”

Bitcoin Technical Analysis

Summary:

• The current sentiment around BTC is Neutral.
• BTC initially saw an upside move but dropped following yesterday’s Bybit news. The overall price action remains choppy, with BTC trading between the 20 EMA and 100 EMA on the daily timeframe. It is currently range-bound in the higher time frame, and this consolidation could continue for several more days until a decisive breakout occurs in either direction.
• Key support levels to consider are around $95,000 and $92,000 On the upside, resistance level is at $99,400 and $106,000.
• 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 endeavours.

Ethereum Technical Analysis

Summary:

• The current sentiment around ETH appears Neutral.
• ETH remained choppy, attempted to break out of consolidation but failed to sustain momentum. ETH/BTC is still at key support, indicating a crucial level for price direction. In the next few days, ETH is expected to trade sideways until a decisive breakout occurs in either direction.
• Significant support levels include $2550 and $2350, while resistance levels to watch are at $2765 and $2850.
• 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.

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