Navigating the Crypto Seas: Weekly Market Recap and Halving Insights

Published on: Mar 15, 2024|4 min read

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London: 15 March 2024 (TraderMade): Welcome back to another thrilling edition of our Weekly Crypto Market Wrap!

Key Takeaways

Bitcoin's surge past $70,000 signifies new all-time highs, reflecting an unpredictable market influenced by ETF issuers and market makers, as observed in the dynamics between crypto-native and institutional futures markets.
Increased volatility on the spot desk, exemplified by Tether briefly trading above parity, underscores heightened market activity. Altcoins like Ethereum (ETH) and projects such as Fantom are gaining traction, indicating a broader market interest beyond Bitcoin.
Key events such as US CPI reports, Ethereum's Dencun upgrade, and bond auctions are poised to influence market sentiment, emphasizing the importance of staying informed and adaptable.
Attention turns to the upcoming Bitcoin halving event and its potential impact on market dynamics. Past halvings have been associated with price fluctuations, highlighting the speculative nature of the crypto market and the challenges in predicting its influence.

Last week's market action left many traders breathless as Bitcoin (BTC) continued its relentless climb, easily shattering previous all-time highs. The journey to the $70,000 milestone was nothing short of exhilarating, with debates raging over what level would mark the ultimate peak.

But as they say, above $70K, all bets are off—we're in uncharted territory now. The dynamics between crypto-native futures and institutional futures markets have been particularly intriguing. While the former has seen explosive growth, the latter has maintained relative orderliness.

This divergence hints at underlying complexities driven by ETF issuers and market makers, who deftly navigate the landscape to mitigate risk and capitalize on opportunities.

Spot Desk Volatility and Altcoin Surge

Volatility on the spot desk has seen a notable uptick, with Tether briefly trading above parity – a rare occurrence that sparked increased offramp activity among opportunistic traders.

Meanwhile, altcoins and major cryptocurrencies like Ethereum (ETH) have been gaining traction, with bids pouring in and certain projects, like Fantom, making significant strides. The DAG-based blockchain ecosystem continues to intrigue, promising innovative solutions and driving investor interest.

Inflation Narrative and Trade Ideas

As the specter of inflation looms, all eyes are on the upcoming US CPI report, poised to shake up intermarket volatility. With sentiment seemingly unstoppable, caution is advised against fading moves higher in the crypto space.

Amidst the enthusiasm, trade ideas like the Fusionist (ACE) token present compelling opportunities backed by strong fundamentals and upcoming catalysts.

Derivatives Desk Insights and What to Watch

Navigating the derivatives market requires a keen understanding of evolving dynamics for wholesale investors. As protection becomes increasingly expensive, strategies like collar options offer a cost-effective approach to managing downside risk.

Meanwhile, the BTC Basis rate continues its ascent, presenting enticing yield opportunities for savvy traders.

Key events like US CPI reports, Ethereum's Dencun upgrade, and bond auctions will likely shape market sentiment in the coming days. Stay tuned for potential market-moving developments and be prepared to adapt to changing conditions.

Bitcoin Halving: Unraveling the Mystery

As Bitcoin's price surges to new heights, attention turns to the upcoming halving event and its potential impact on market dynamics. It is scheduled to occur roughly every four years. As a result, the pace of Bitcoin production decreases.

It is needed to reinforce Bitcoin's scarcity narrative. While past halvings have been associated with price fluctuations, predicting their exact influence remains challenging amidst the speculative frenzy of the crypto market.

Weekly highlights:

Bitcoin hits $72k, surpassing gold.
Tether reaches a $100B cap.
The SEC delays Ethereum ETFs.
The FED Chair comments on CBDC.
El Salvador's Bitcoin gains.
The ECB prepares for rate cuts.
US nonfarm payrolls grow.
Bitcoin halving speculation.

In conclusion, the crypto landscape remains as thrilling and unpredictable as ever. Whether you're a seasoned trader or a curious observer, staying informed and agile is key to navigating these turbulent waters. As we brace for the unknown, one thing is certain – the journey promises to be anything but dull.