Research Summary
The report provides a comprehensive analysis of the cryptocurrency market for the week of January 5. It covers the performance of major cryptocurrencies such as Bitcoin ($BTC) and Ethereum ($ETH), as well as altcoins like $SEI and $TIA. The report also discusses market trends, including liquidation events and the performance of Ethereum beta coins.
Key Takeaways
Bitcoin’s Market Performance
- Bitcoin’s Volatility: Bitcoin started the year at $42.3k, broke out of its $44k resistance, and almost reached $46k. However, it experienced a significant drop on January 3, going from $45.3k to $41k in an hour, before bouncing back to $42.5k.
Ethereum and Altcoins
- Ethereum’s Performance: Ethereum showed signs of strength on December 28 but ended up giving back all its recent gains. It currently stands at $2220, and ETHBTC is back to its 0.051 bottom.
- Altcoin Performance: The best-performing altcoin of the week was $SEI, a high-throughput, low latency alt L1, which is up +560% over the last three months and +40% in the last seven days.
Market Trends
- Liquidation Events: January 3 was a massive liquidation day, with the total Open Interest on the main exchanges going from $24bn to $19bn. This was due to high funding rates suggesting many people were long on leverage.
- Ethereum Beta Rotation: The report suggests that the market is looking for the next narrative/rotation, which seems to be Ethereum-centered. ETH-related coins, especially $ARB and $LDO, led the post-crash recovery.
Noteworthy Coins
- Notable Performers: $TIA has been a strong performer since its launch, up 7x with any significant drawdown. It is up +36% this week and currently stands close to $16. Another coin following $TIA’s performance is $NTRN: Neutron Finance, which fits in the modularity narrative.
Actionable Insights
- Monitor Market Trends: Investors should keep an eye on market trends such as liquidation events and Ethereum beta rotation, as these can significantly impact the performance of cryptocurrencies.
- Consider Diversification: The report highlights the performance of various altcoins, suggesting that diversification into these coins could potentially yield significant returns.
- Stay Informed: Keeping up-to-date with news and developments in the cryptocurrency market, such as rebranding or redenomination of coins like $MKR, can provide valuable insights for investment decisions.
