Macro Overview
- FOMC Minutes: According to the latest FOMC minutes, officials expressed a desire to witness further progress towards achieving the 2% inflation target before considering rate cuts. Additionally, officials reiterated their vigilance regarding inflation risks, underscoring their cautious approach to monetary policy adjustments.
- US Unemployment Claims (Weekly): US Unemployment claims came out at 201k, lower than the expected 217k. This news is slightly negative for the crypto market due to the inverse relationship between unemployment claims and crypto.
Crypto Markets Overview
- Market Movement: This week, the crypto market experienced a 0.10% uptick, bringing the total market capitalization to $1.90trillion. Notably, BTC saw a fall of -1.75% and ETH saw a rise of 4.30%. Bitcoin’s dominance stands at 53.00%, while Ethereum’s holds at 18.65%.
- Reddit Dips into Crypto Treasury: Social news network Reddit has been utilizing its excess cash to acquire small amounts of Bitcoin and Ether since 2022, signaling its belief in the significant potential of crypto and blockchain. Additionally, Reddit has experimented with Ether and MATIC as forms of payment for virtual goods sales, further integrating cryptocurrencies into its ecosystem.
- Coinbase Backs Grayscale’s Ethereum ETF Bid: Coinbase, the largest crypto exchange in the U.S., has thrown its support behind Grayscale’s application to convert its Ethereum Trust into a spot Ether Exchange-Traded Product (ETP). By urging the Securities and Exchange Commission (SEC) to approve Grayscale’s proposal, Coinbase is advocating for the expansion of investment opportunities in the crypto market.
- Spot Bitcoin ETFs Witness First Single-Day Outflow Since January: On February 21, spot Bitcoin (BTC) ETFs experienced net outflows totaling $35.6 million, marking the first instance of negative numbers since January. This move, potentially driven by profit-taking, contrasts with the 17 consecutive days of net inflows observed earlier. BlackRock and Fidelity notably led the previous inflow trend.
- Andreessen Horowitz Invests $100M in EigenLayer: Venture capital firm Andreessen Horowitz has injected $100 million into EigenLayer, a crypto restaking startup, following its recent funding round. This substantial investment underscores growing interest in EigenLayer’s restaking model, reflecting broader confidence in innovative solutions within the crypto industry.
- CME to Launch Euro-Denominated Micro Bitcoin and Ether Futures: The Chicago Mercantile Exchange (CME) plans to introduce euro-denominated micro bitcoin and ether futures contracts on March 18, pending regulatory approval. This announcement follows heightened activity in CME bitcoin and ether futures, signaling increasing demand for crypto derivatives in traditional financial markets.
Top Tokens Update
- PSG Joins Chiliz Blockchain as Validator: Paris Saint-Germain (PSG), the renowned French football club, has made history by becoming the first football club to act as a validator on the Chiliz blockchain. This strategic move underscores PSG’s commitment to embracing blockchain technology, with implications for both the sports and cryptocurrency industries. The CHZ token has surged by nearly 15% this week following the announcement.
- Worldcoin Surges 40% Amid AI Token Boom: Worldcoin, a cryptocurrency, has experienced a significant 40% surge and achieved a record high, fueled by the broader uptrend in AI tokens following Nvidia’s earnings results. The chipmaker’s robust fourth-quarter earnings and optimistic first-quarter guidance have instilled confidence in the artificial intelligence sector, driving a rally in AI-related cryptocurrencies.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| Feb 28 | 7:00 PM | US Prelim GDP q/q | Actual’ less than ‘Forecast’ is good for crypto |
| Feb 29 | 7:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is neutral.
- This week, BTC has mostly traded within a 3.5% range, oscillating between resistance at $52,500 and support at $51,000. Currently, it’s hovering near the support level. While funding rates are neutral, the price action and EMAs present a mixed outlook. Traders should remain cautious and seek opportunities when BTC breaks out of this sideways range.
- Key support levels to consider are around $48,700, $47,850 and $47,150. On the upside, resistance levels include $52,500, $57,500 and $59,200.
- 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 neutral .
- This week, ETH has shown better performance compared to BTC, but it’s currently trading in a sideways zone, echoing the mixed signals seen in BTC. The 4-hour 20EMA acts as a robust support level, and a breach of that could trigger a downturn. Conversely, a breakout from this range could propel ETH towards $3,150.
- Significant support levels include $2890, $2690, $2600, and $2535, while resistance levels to watch are at $3020, $3150 and $3260.
- 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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