Weekly Crypto Market Wrap

London: 22 March 2024 (TraderMade): Welcome to the week's edition of the Weekly Crypto Market Wrap. Dive into the trends, developments, and insights shaping the digital asset landscape this week.

Key Takeaways

• Ethereum Upgrade: Successful execution of Dencun Upgrade aims to reduce data fees and enhance scalability on the Ethereum network.
• London Stock Exchange: Accepting applications for Bitcoin and Ethereum - - ETNs, providing more avenues for traditional investors.
• Grayscale's ETF: It is filed for a "mini" spot Bitcoin ETF, aiming to offer tax-free exposure to Bitcoin.
• Craig Wright Ruling: Australian computer scientist Craig Wright ruled not to be Satoshi Nakamoto after a years-long legal battle.

Ethereum's Dencun Upgrade

This week, the Ethereum network successfully executed the Dencun Upgrade, which aimed to reduce data fees and enhance scalability drastically. This is a significant milestone for the platform.

London Stock Exchange and ETNs

In another positive development, the London Stock Exchange announced it would accept applications for Bitcoin and Ethereum Exchange-Traded Notes (ETNs), providing more platforms for traditional investors gaining exposure to digital assets.

Grayscale's "Mini" Bitcoin ETF

Grayscale has filed for a "mini" spot Bitcoin ETF, aiming to offer tax-free exposure to Bitcoin, further legitimizing the cryptocurrency in the eyes of institutional investors.

Craig Wright Legal Battle

In a long-awaited legal ruling, a judge has declared that Australian computer scientist Craig Wright is not Satoshi Nakamoto, ending a years-long legal battle over the identity of Bitcoin's mysterious creator.

Meme Coins and Network Growth

According to a recent investor bulletin by Franklin Templeton, meme coins have shown a strong correlation to network growth, shedding light on the speculative nature of these assets.

Hong Kong's CBDC Pilot

Hong Kong has officially started phase 2 of its Central Bank Digital Currency (CBDC) pilot, joining other countries in exploring the potential of digital currencies.

US Inflation Data

The CPI (US Consumer Price Index) showed that gasoline and shelter costs boosted inflation data, adding to the ongoing debate over inflationary pressures in the economy.

UK GDP Surge

Hopes of the UK leaving the recession have risen as the month-on-month GDP report shows a significant surge, indicating potential economic recovery.

Bitcoin Market Analysis

Bitcoin saw steady growth throughout the week, but towards the end, it breached the trend line, signalling a correction. This marks the end of the uptrend, prompting the price to readjust and determine its next move. Despite this, the overall market sentiment remains bullish.

• New All-Time High: Bitcoin soared to a new all-time high, surpassing the $71,000 mark. Within six days, the cryptocurrency surged over 40%, reaching $71,000 by the end of the week.
• Price Correction: Although there was a pullback about a week ago, optimism among BTC holders prevented significant declines. However, panic selling followed once BTC briefly topped $69,000, resulting in a notable correction to $63,724. This prompted large investors, known as whales, to sell off over 115,000 BTC, valued at more than $8.13 billion.

Altcoin Spotlight: EOS and PEPE

• EOS Market Analysis:

EOS experienced a significant one-day loss of 10.16% on Friday, marking its largest decline since January 3. The downward movement pushed EOS's market cap down to $1.2223B, which is just 0.05% of the total cryptocurrency market cap.

Trading Volume and Historical Performance: Traded within a range of $1.0553 to $1.1549 in the previous twenty-four hours, EOS recorded a drop in value over the past seven days, losing 13.12%. Despite its current price, EOS remains down 95.41% from its peak of $22.98 reached on April 29, 2018.

• PEPE Price Surge:

PEPE's price surge since February, breaking through resistance levels, raises questions about a potential new bullish trend or just a relief rally. Technical analysis on the daily timeframe indicates a positive trend, with the price reclaiming key horizontal areas and breaking out from descending resistance trend lines.

Bullish Sentiment: The daily Relative Strength Index (RSI) supports bullish sentiment, with readings above 50 and an upward trend indicating favourable conditions for buyers.

Conclusion

The cryptocurrency market is rapidly evolving, marked by major advancements in Ethereum upgrades, increased adoption of digital assets by traditional financial institutions, and significant price shifts in Bitcoin and altcoins such as EOS and PEPE. Moving forward, monitoring these developments will be essential.