BTC Leads Rally Amid Market Volatility

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Last week, the cryptocurrency market experienced a growth of 5%, moving from a market capitalization of $1.06 trillion to $1.113 trillion.After weeks of upward momentum, the indices across markets saw a decent pullback across the board. Despite this , post CPI print marking in higher than expected caused the market to move to the down side a bit but a recovery to the upside was fast. The upward rally was further intensified in coming days with BTC outperforming all other major indices. While the move has taken BTC to $24,700 mark, more sustained movements will help to make the market constitution healthier.

Source: Tradingview
BTC analysis

Ethereum Price Analysis:

Ethereum (ETH-USD), despite its recent price drop, continues to be at the forefront of decentralised finance, smart contracts, NFTs, and other rapidly expanding trends that should support long-term price growth. The ability of investors to sell staked Ethereum could be a future catalyst, and the Zhejiang Testnet’s success in enabling test withdrawals suggests that this upgrade is soon to come.

Source: Tradingview

Ethereum token price bounced off the support level at $1,462 and broke above the resistance levels at $1,580 and $1,672. This shows that buyers are trying to stop the correction near $1,500, which is a psychological price level. If bulls keep pushing the price above $1,672 and keep it there, the pair could go up to $1,766 and then to $2,000 as long as the Shanghai upgrade hype is going. The bears will try hard to defend this area. If bears want to strengthen their position, they will have to fight hard to defend the $1,672 level and push the price down below $1,580. If they do that, the ETH/USDT pair might extend the correction to the support level at $1,462.

Fundamental Updates

On 14th Feb, CPI marked in at 6.4%, higher than the expected 6.2% mark. A downside momentum had already developed leading up to the event with a slight dump on the  release. Subsequently, the markets turned around and rose higher while liquidating an insane amount of positions to each side. A lot of fundamental and macroeconomic indicators are yet to turn positive sustainably and hence the rally upto new highs needs to sustain before a reliable growth trajectory can be achieved.

Feb 16th will bring the release of PPI and Core PPI numbers. The numbers are expected to come in at 5.4% and 4.9%, respectively. Each of the numbers hold a significant effect,  and any number higher than expected can affect the market’s momentum.

inflation number

Feb 23rd will have the Fomc meeting minutes released. In the current volatile market and deviating movements, Fed’s commentary will have higher nuance as the market conditions become more volatile and deviant.

Bitcoin returns were 9.84% for this week. The Alpha Blue Chip Focused Strategy returns were 15.51% during the same period (9 FEB – 16 FEB). The Top Cap Digital Assets Strategy and Arbitrage and Balanced Opportunities Strategy returns were 11.05% and 2.06%, respectively.

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