State of the Crypto Market

• Market Movement: This week, the crypto market experienced a 10.40% fall, bringing the total market capitalization to $3.10 trillion. Notably, BTC saw a fall of 6.58% and ETH saw a fall of 15.73%. Bitcoin’s dominance stands at 59.35%, while Ethereum’s holds at 12.40%.
• Market Decline: The crypto market witnessed a sharp downturn, with Bitcoin’s dominance climbing to 60% and altcoin valuations dropping by 16% in just three days. Contributing factors include uncertainty from Fed rate cuts, corrections after the event-driven Trump rally, and rising USD dominance. Altcoins faced further strain due to Bitcoin’s decline and its growing market share, intensifying the sell-off.
• Record Outflows Hit US Spot Bitcoin ETFs, Ending Positive Streak: On Thursday, U.S. spot Bitcoin ETFs experienced an unprecedented $680 million in daily outflows, breaking a 15-day streak of positive inflows.
• SEC Approves First Hybrid Bitcoin-Ethereum ETFs From Hashdex, Franklin Templeton: The U.S. Securities and Exchange Commission (SEC) has approved the first spot exchange-traded funds combining Bitcoin and Ethereum. Nasdaq will list the Hashdex Nasdaq Crypto Index US ETF, and the Cboe BZX Exchange will list the Franklin Crypto Index ETF, as per a filing released Thursday. The Trusts will hold a proportion of Bitcoin and Ether based on their respective free-float market capitalizations.

Top Tokens Update

• Aptos Co-Founder and CEO Mo Shaikh Steps Down to ‘Start New Chapter’: Mohammad Shaikh, co-founder and CEO of layer-1 blockchain Aptos Labs, has resigned to “start a new chapter,” with co-founder and chief technology officer Avery Ching stepping in as the new CEO. Shaikh co-founded Aptos Labs alongside Ching in 2021, assisting in its mainnet launch in October 2022 and helping the firm raise $400 million and establish key partnerships. Notably, APT is down by over 25% this week, although it’s unclear if this drop is directly related to Shaikh’s departure, as most altcoins have been affected by a broader market correction.
• German Regulators Order Worldcoin to Delete User Data: German regulators have ordered Worldcoin to delete biometric user data due to violations of the General Data Protection Regulation (GDPR). The Bavarian State Office for Data Protection (BayLDA) issued the order, prompting World (formerly Worldcoin) to file an appeal against the ruling, sparking a legal battle.
• Shiba Inu and Chainlink Partner to Expand Multi-Chain Ecosystem: Shibarium, Shiba Inu’s Layer-2 blockchain network, has partnered with Chainlink to enhance its growing decentralized ecosystem through cross-chain interoperability. By integrating Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and the Cross-Chain Token (CCT) standard, Shiba Inu assets like SHIB, LEASH, and BONE can now operate seamlessly across 12 blockchains.

Bitcoin Technical Analysis

Summary:

• The current sentiment around BTC is Neutral.
• This week, Bitcoin (BTC) saw a significant drop due to Fed rate cuts and an increase in USDT dominance. As a result, altcoins dropped even harder as Bitcoin’s dominance increased. For the next week, BTC could either consolidate or slightly retrace on the upside, as the market appears oversold. However, there is still no clear direction for the market, so users should remain cautious.
• Key support levels to consider are around $91,000 and $85,000. On the upside, resistance level is at $102,500 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

• The current sentiment around ETH appears Neutral .
• This week, Ethereum (ETH) dropped significantly as the ETH/BTC pair lost key trendline support, contributing to the overall market decline. ETH dominance continues to decline, adding to the uncertainty. For the next week, the technical outlook looks uncertain for now. We may see some consolidation for a few days, as is typically seen after a market fall.
• Significant support levels include $3070 and $2900, while resistance levels to watch are at $3545 and $3975.
• 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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