Macro Overview
This week brought back the volatility in crypto markets with key macro announcements like US CPI, US Core CPI, US PPI, and Initial Jobless claims
- The US CPI (YoY) for June revealed that inflation in the United States continues to cool, reaching 3%, slightly lower than the estimated 3.1%. This is bullish for crypto.
US Consumer Price Index (CPI)
- US Core CPI (YoY) for June stood at 4.8%, below the expected 5%. This reading is positive for the crypto space. The US Core CPI also measures inflation but excludes food and energy prices.
- US PPI which measures the change in the price of goods sold by manufacturers came at 0.1% for June (MoM), lower than the estimate of 0.2% signaling positive signs for inflation coming down.
- US Initial jobless claims which measures the number of individuals who filed for unemployment insurance for the first time during the past week came at 237K, lower than the estimate of 250K. This is also seen as an encouraging sign for crypto since the dollar is inversely correlated to crypto.
Crypto Markets Overview
- This week, crypto markets are up by 6.6% totaling 1.26 trillion with BTC and ETH up by 4.6% and 8.1% respectively. Bitcoin dominance stands at 48.5% with Ethereum at 19.2%.
- XRP price explodes over 70% as judge rules in favor of Ripple in SEC Case not regarding it as a security. Following this announcement, XRP became the 4th largest crypto by market capitalization. This seems to be a major win for the company, as the case has been ongoing for more than three years
- Polygon Proposes Token Switch From MATIC to POL for More Utility. POL will work as a multipurpose token that can be used to validate multiple Polygon-based networks, allowing a 1:1 conversion from $MATIC
- No. of individual wallets holding at least one bitcoin has soared to an all-time high of 1,008,737 million. This surge in wallet distribution suggests an increasing decentralization of the Bitcoin network.
- The crypto market witnessed a positive trend, with crypto-linked investment products experiencing net inflows of US$136 million in the last week. This marks the third consecutive week of inflows, effectively correcting the prior nine weeks of outflows.
- U.K. bank Standard Chartered predicted that Bitcoin will reach $50,000 by the end of 2023 and $120,000 by the end of 2024, signaling the bull run has already started
- Tech giant Google is allowing the integration of non-fungible tokens (NFTs) into its widely popular Android app and game marketplace, Google Play. This signals a significant milestone in Google’s embrace of blockchain technology.
- Kava 14, an EVM-compatible blockchain on Cosmos, is live and will feature internal bridging of assets between EVM Chains and Cosmos
- BNB Chain to undergo “ZhangHeng” upgrade later this month and is said to massively improve chain security. The hard fork is forecasted to occur on 19th July 2023
Bitcoin Technical Analysis
Summary:
- BTC made another attempt this week to break out of a sideways range that lasted for three weeks. However, yesterday it retraced back into the range. To confirm further bullish momentum, BTC needs to maintain a level of $31,800 and close above it in the daily timeframe.
- The general market sentiment and news are favorable, but it is advisable to closely monitor the price action before making any decisions.
- The resistance level is located at $32,448, while the support level is at $29,077.
- The cumulative open interest has witnessed a significant increase during this week.
Ethereum Technical Analysis
Summary:
- During this week, ETH experienced a respectable upward rally of 8%.
- As mentioned in the previous weekly report, ETH showed adherence to the resistance level at 2022 and is currently consolidating below that threshold.
- There is a resistance level situated at $2164, whereas support levels at $1936 and $1903 could potentially provide a foundation for price stability.
- When considering higher time frames, the overall outlook for ETH is bullish.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The Content is for informational and educational purposes only. The Content is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or securities or virtual digital assets or to participate in any investment or trading strategy.The Content or any part of it is not legal, financial, investment or tax advice. The calculations, data, risk return formulations, performance or market capitalization indicators are based on the independent data sourced by CoinDCX or third parties. Past performance is not indicative of any future results.
