Weekly Crypto Market Wrap: 29 March 2024

London: 29 March 2024 (TraderMade): The crypto market has been on a roller-coaster, with BTCUSD displaying significant volatility due to shifting macroeconomic expectations. Here's a condensed overview of the technicals, sentiment, and market drivers.

Key Takeaways

• The Federal Reserve's announcement of three rate cuts this year sparked a bullish market across bonds, stocks, and cryptocurrencies.
• BTCUSD signaled a potential upward movement, experiencing a double false break of the $65,000 level and the 20-day EMA.

Technicals

The past week was characterized by macro shifts and market deleveraging leading up to the FOMC meeting on March 20th. The Fed's more dovish stance triggered a bullish reaction across assets, including BTCUSD.

This led to a notable break of the $65,000 level and the 20-day EMA. Influential bank forecasts suggest a potential surge in BTCUSD.

Key Levels to Watch $50,000, $65,000, $69,000, $70,000, $80,000

Spot Desk Insights

Fiat to Crypto Onramps Strong

The spot desk noticed a skew towards onramps, with the AUD strengthening and USD bidding on BTC and Alts. Ethereum (ETH) faced liquidation due to an expected ETF delay. Watch Blackrock for its market influence.

Alts Bid Across Themes

Interest in various tokens rose, with attention on DOT, FIL, OP, SSV, ORDI, and others. OM rallied ~130% on its 'Hongbai' test network launch and financial license applications in Hong Kong and the UAE.

FOMC Drama and Market Response

BTCUSD saw fluctuations, declining before the FOMC meeting and rebounding post-announcement. This volatility presented opportunities for clients to capitalize on the dip.

Derivatives Desk Insights

Wholesale Investors Only

Post-rally, futures basis/funding rates slightly retreated but surged post-FOMC. Yield-generating perp strategies (long spot, short perp) are preferred for carrying earnings and waiting for the next market move. High beta movers could approach 100% APY.

Market Update

Bitcoin has been on a downtrend since March 14th, but the breach of the trend line suggests potential upward movement.

Bitcoin: Rebounded to $66,000-$67,000 after dipping to $60,000 midweek. Analysts expect a decrease in ETF activity, making way for the halving event.

Ethereum (ETH): Gained 10.04% on Wednesday, reaching $3,530.72. Despite this surge, it's down 27.41% from its all-time high.

XRP: Increased 10.41% on Thursday, reaching $0.63844. However, it is still down 80.59% from its all-time high.

Weekly Recap

• Spot Bitcoin ETFs outflows: Grayscale's GBTC lost $642 million in a day.
• EU committees approved a ban on anonymous crypto transactions via hosted wallets.
• MicroStrategy's stock surged 180% this year after it sold its debt to buy more Bitcoin. It now owns 1% of the total Bitcoin.
• Solana surpassed Ethereum in blockchain activity amid the recent meme trend.

Conclusion

Understanding the crypto market requires a grasp of technicals, sentiment, and key factors influencing price movements. With upcoming economic indicators and the BTC halving event, traders and investors should stay vigilant and adaptable to seize emerging opportunities.