Macro Overview
- US CPI (Consumer Price Index) YoY: US CPI (yearly) came out at 3.1%, higher than the expected 2.0%. This news had a negative impact on the crypto market, causing it to initially drop. However, the market later recovered.
- US Unemployment Claims (Weekly): US Unemployment claims came out at 212k, lower than the expected 219k. 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 11.50% uptick, bringing the total market capitalization to $1.89trillion. Notably, BTC saw a rise of 12.14% and ETH saw a rise of 14.93d%. Bitcoin’s dominance stands at 53.90%, while Ethereum’s holds at 17.70%.
- Genesis Global Approved to Unload $1.3 Billion GBTC Shares: Genesis Global Holdco LLC received approval from Judge Sean Lane to liquidate its GBTC investments, totaling $1.3 billion. The bankruptcy tribunal granted Genesis’s request for sanction, allowing the sale to proceed. Additionally, Genesis can divest its holdings in alternative Grayscale funds like the Ethereum Classic Trust.
- Philippines Plans Central Bank Digital Currency Launch: The Philippines’ central bank, Bangko Sentral ng Pilipinas (BSP), is preparing to introduce a Central Bank Digital Currency (CBDC) within two years. This move aims to provide a stable and regulated alternative to the volatile cryptocurrency market. Unlike traditional digital currencies, the Philippine CBDC will not utilize blockchain technology but will instead leverage the Peso Real Time Gross Settlement System, as outlined in the National Payment Systems Act.
Top Tokens Update
- Telefonica Partners with Chainlink for Enhanced Security: Spanish telecom giant Telefonica has formed a strategic alliance with web3 solution provider Chainlink Labs. The collaboration aims to integrate real-world telecommunications capabilities into blockchain networks, enhancing security. This move underscores Telefonica’s commitment to leveraging blockchain technology for improved functionality and reliability. LINK has surged by over 5% this week, reflecting positive market sentiment towards the partnership.
- Moonwell Launches ‘USDC Anywhere’ for Ethereum Lending: DeFi lender Moonwell introduces ‘USDC Anywhere,’ allowing users to lend USDC to Moonwell from various Ethereum networks. This innovative tool enables individuals to leverage their digital assets and send USDC throughout the Ethereum ecosystem, enhancing liquidity and accessibility within the decentralized finance space.
- VeChain Implements Programmable Smart Contract Wallets, VET Surges: VeChain (VET), the enterprise-grade L1 smart contract platform, has rolled out Account Abstraction (AA) on its blockchain ecosystem. This significant development enhances VeChain’s capabilities, allowing for programmable smart contract wallets. The implementation of AA has propelled VET to soar in value, reflecting investor optimism towards the platform’s advancements.
- Ripple Expands U.S. Presence with Acquisition of New York Crypto Company: Ripple has announced its acquisition of Standard Custody & Trust Co. in New York, aimed at bolstering its regulatory credentials in the U.S. This strategic move is part of Ripple’s broader strategy to expand its business scope in the U.S. market. By enhancing its regulatory compliance measures, Ripple seeks to extend its services beyond its core function as a payment network. XRP has surged by almost 8% this week, fueled by positive market response to the acquisition.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| Feb 22 | 12:30 AM | US FOMC Meeting Minutes | More dovish than expected is good for crypto |
| Feb 22 | 7:00 PM | US Unemployment Claims (Weekly) | Actual’ greater than ‘Forecast’ is good for crypto |
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is neutral to bullish.
- This week, BTC demonstrated robust bullish momentum, surging to a new yearly high at $52,000. Presently, it’s consolidating around this level, and if it successfully breaks out from this consolidation, it might see a substantial rally towards $60,000. Technically, the outlook remains positive, with support from the 20EMA D, and positive ETF inflows further reinforce this optimistic sentiment.
- Key support levels to consider are around $48,700, $47,850 and $47,150. On the upside, resistance levels include $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 to bullish.
- This week, ETH has outpaced BTC, demonstrating strong bullish momentum and currently finding robust support at the 20 EMA D. It’s consolidating, poised for potential further gains upon breaking this consolidation. Additionally, the strength of the ETH/BTC pair is a positive indicator for Ethereum.
- Significant support levels include $2690, $2600, and $2535, while resistance levels to watch are at $2900 and $3300.
- 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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