ToE's Weekly Highlights #60

Digging up the grinds for the week.

Feb 04, 2024

Gmgm ToE readers! Alts bleeding but this is probably the best time to load your bags!

Macro: The Fed keeping rates steady indicates its cautious approach to policy in light of economic uncertainties. However, openness to future rate cuts shows willingness to support growth if needed.
Trend: Bitcoin bounced back into its $41k-$44k trading range after briefly dropping below $39k last week. It's unclear if this is a lower high before another drop or a return to bullish conditions. Sentiment doesn't seem bearish enough for the $39k level to be the final bottom after the ETF launch.
DeFi: LRTs protocols, Origin going into LRTs, Blast projects, Tokenless projects, $PEAQ, GCR life lessons, Aevo airdrop
Tools: Protect yourself from sim swapped, Farcaster VC dune list
Spicy Drama: Blast copied code, MIM exploited, Route fud, Ripple hacked

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Segmenting the megathread of content into 5 parts:

Macro news
Trending narratives
Defi happenings
Educational resources and tools
Spicy crypto drama

1. Macro News

The Fed keeping rates steady indicates its cautious approach to policy in light of economic uncertainties. However, openness to future rate cuts shows willingness to support growth if needed.

Powell emphasizing more data needed before rate cuts suggests the Fed will take a patient approach guided by incoming economic data.
Reducing the balance sheet on schedule shows the Fed remains focused on fighting inflation despite economic risks.

The sharp Nasdaq/S&P decline shows investors growing concerned about earnings and growth outlook amid rising economic uncertainty.
Google's miss on ad revenue highlights worrying signal for digital advertising outlook. Microsoft's strong earnings cushioned by cloud.
Increase in jobless claims to 224,000 suggests a mild cooling of the U.S. labor market, indicating a phase of stabilization following a period of significant job growth. Despite this uptick, layoffs remain historically low, pointing to an underlying robustness in the job market.

@arndxt_xo on macro pulses

@Stoiiic on Orderbook liq

@TheCryptoKazi biggest bull run

@0xcryptodave on BTC thoughts

@TheDeFinvestor feeling more bullish than bearish

@SpartanBlack_1 Fed will cut rates soon

@QuantMeta on your 2024 playbook

@ShinobiShiller on Macro predictions

@CryptoWithNick on Jan update

2. Trending Narratives

Bitcoin bounced back into its $41k-$44k trading range after briefly dropping below $39k last week. It's unclear if this is a lower high before another drop or a return to bullish conditions. Sentiment doesn't seem bearish enough for the $39k level to be the final bottom after the ETF launch.

Ethereum has underperformed all week, with the ETHBTC pair dropping daily since January 20. But the upcoming Shanghai upgrade could be bullish for Ethereum long-term.
Manta (+65%), Ondo (+50% after hitting 0.3-0.5 target), AltLayer (+50% after launch), Sui (+43% with volatility), CFX (+36% on Chinese New Year and L2 narrative), Avalanche (+19%), Solana (+18%), Secret (+14%), ICP (+17%), Injective (+13%), Tilia (+12%), Bittensor/TAO (+50% as leader in "decentralized AI" narrative), Helium (+33% as leader in DeFi Physical Network narrative), Dusk (+40% on ZK and RWA narratives and upcoming catalysts), Lisk (+45% on Binance listing and migration to Ethereum L2), Whales Market (+25x on "points" meta).
Apple VR headset launch possibly benefiting Render Token and metaverse tokens, Frax upcoming L2 launch and other catalysts, Klaytn & Finschia merge proposal, new "superfluid staking" project Vector Reserve.

@TheDeFinvestor on crypto watchlist