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The crypto market continues to evolve with dynamic shifts in investor sentiment, regulatory landscapes, and technological advancements. This week, particular attention is being directed towards six coins that are poised at critical junctures, each for unique reasons. Here’s what to watch:
#1 Bitcoin: ETF Data, Monthly Close, And US PCE
Bitcoin remains the market’s bellwether, with its movements closely monitored by investors and analysts alike. This week, the focus will be again on the daily spot Bitcoin ETF inflows and outflows, a key indicator of institutional interest.
However, the monthly close on Thursday will be under the microscope as well. According to Rekt Capital, a renowned crypto analyst, “This February, BTC is again pressing beyond the Macro Diagonal. Worth watching for the Monthly Close again [above $40,941]. The reason it’s important to watch for a Monthly Close beyond this Macro Diagonal resistance is because price has upside wicked beyond the Macro Diagonal in the past (orange circle).”
It was wise to watch out for a Monthly Close beyond the Macro Diagonal this past January as indeed $BTC formed an upside wick in the end
This February, BTC is again pressing beyond the Macro Diagonal
Worth watching for the Monthly Close again$BTC #Crypto #Bitcoin https://t.co/gAI35SasS6 pic.twitter.com/VNwodLd2l9
— Rekt Capital (@rektcapital) February 18, 2024
On the weekly time frame, a close above $48,400 would be extremely bullish, perhaps with a retest of this support. If BTC holds above this level, it could rally towards the 0.786 Fibonacci retracement level at $57,380.
BTC price, 1-week chart | Source: BTCUSD on TradingView.com
Moreover, the PCE inflation data release on Thursday in the US also looms large, given its implications for Federal Reserve policy and, by extension, risk assets like Bitcoin. With recent CPI inflation data exceeding expectations, the PCE data’s impact on market sentiment and Bitcoin’s price trajectory will be pivotal.
According to data from the CME Group’s FedWatch Tool, there is currently only a 2.5% likelihood of interest rates dropping in March, while a majority anticipates a rate cut by June (56.4%). If PCE data overshoots expectations as well, it could be a bummer for Bitcoin and crypto. The $48,400 support level would be crucial to hold.
#2 Uniswap: Governance Proposal And SEC Attention
The Uniswap Foundation recently introduced a proposal to revise its governance structure, which aims to incentivize UNI token holders who stake and delegate their tokens. This proposed change is significant as it includes a long-discussed fee switch mechanism, which could significantly influence Uniswap’s price dynamics if implemented.
The outcome of this proposal is particularly sensitive given Uniswap’s status as a project based in the United States, where regulatory actions from the Securities and Exchange Commission (SEC) could be looming. However, the crypto community is optimistic. Among others, crypto analyst The Crypto Dog stated:
Uniswap fee switch ushering in a new era. SEC has lost its bite. I’m impressed, very bullish for defi, US based/US compliant builders, and the broader crypto market. Watch it pricing in now across the markets.
The decision on this proposal will be initially gauged through a snapshot vote set for March 1, 2024, followed by an on-chain vote scheduled for March 8, 2024. This governance upgrade, if passed, could set a precedent affecting not only Uniswap but potentially other projects within the cryptocurrency ecosystem.
#3 Lido Finance: Revenue Sharing And Ethereum ETF
Should Uniswap’s initiative to implement revenue sharing succeed, it could prompt other prominent projects, such as Lido Finance (LDO), to also introduce revenue-sharing mechanisms.
Lido could be a beta-play of the restaking narrative and spot Ethereum ETF, with the final approval deadline in mid-May. Moreover, the Simple Distributed Validator Technology (DVT) Module testnet will be released soon. It aims at enhancing the functionality and efficiency of the Uniswap protocol.
#4 Blur: Blast L2 Launch
Blur is on the cusp of launching Blast L2 next week, a significant advancement for Ethereum’s Layer 2 scaling efforts. This initiative, spearheaded by Blur’s founder Pacman, aims to augment Ethereum’s scalability and reduce asset depreciation for Blur users.
The introduction of Blast L2, an optimistic rollup solution, is designed to offer native yield opportunities while preserving the security integrity of the Ethereum network. Impressively, the project has already garnered substantial financial interest, securing over $400 million in funding within just three weeks of its announcement.
Unique to Blast is its promise of passive income for its users, setting it apart from other Layer 2 solutions by offering a distinctive approach to blockchain network benefits.
#5 Starknet: Revised Crypto Token Unlock
Following the major launch controversy, Starknet has adjusted its token distribution strategy to mitigate potential selling pressure. Originally, a significant portion of Starknet tokens was scheduled for release, but in a strategic pivot, the project has now decided to delay the bulk of these unlocks. Specifically, only 0.64% of the initially minted 10 billion tokens will be released on April 15, a stark reduction from the initially planned 13.4% (1.34 billion tokens).
This phased unlocking strategy will continue monthly at a rate of 0.64% (64 million tokens) until March 15, 2025. This revised schedule aims to stabilize the market and prevent sudden influxes of tokens from impacting the token’s price negatively.
Furthermore, Starknet’s Total Value Locked (TVL) is on an upward trajectory, bolstered by the initiation of a 40 million STRK Incentive Campaign, designed to encourage engagement and investment within the Starknet ecosystem. Notably, Starknet remains unlisted on several major centralized exchanges, presenting a potential growth opportunity.
Featured image created with DALL·E, chart from TradingView.com
