Coin360 Daily Dispatch | Crypto Market Updates & Highlights | March 4, 2024

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Crypto Market Update

Table of Contents

Market Trends and Predictions

• Bitcoin's Surge to New Peaks
• Ethereum's Price and User Surge
• Qatari Billionaire's Bitcoin Buzz
• BlackRock's Bitcoin ETF Draws Billions

Regulatory and Fraud Alerts

• Hong Kong SFC Warns Against BitForex
• China Reiterates Crypto Warnings

Stablecoin and Network Updates

• Tether's Market Cap Hits $100 Billion
• Omni Network's Major Ether Deal

Government and Institutional Involvement

• US Government's Bitcoin Holdings Grow
• Nigeria and Binance's Regulatory Tussle

Global Developments and Future Prospects

• Worldcoin Nears 4 Million Users
• Taiwan's Upcoming Digital Currency Laws
• Telegram's TON Token Sale Strategy
• FTX's Creditor Claim Deadline Set

NFT and Meme Coin Phenomena

• Meme Tokens' Market Surge
• CryptoPunks' High-Value Sale
• Bitcoin NFTs Outshine Ethereum

Bitcoin's Surge to New Peaks

Bitcoin's price surge has been notable across several fronts, nearing $67,000 with over $550M in new GBTC outflows, marking a new 2024 high surpassing $66,000 and nearing all-time peak as the halving approaches. It hit a new all-time high against the Euro and British Pound following a surge past $66,000. CryptoQuant flagged Bitcoin's price as "overheated" based on their "bull-bear" indicator, highlighting potential market overheating. Meanwhile, 10X Research predicts a record-breaking price surge on the horizon as OTC desks dry up, signaling a strong demand and bullish market dynamics.

Ethereum's Price and User Surge

The Ethereum market is bullish, with the ETH price surpassing $3,500 ahead of the Dencun upgrade (EIP 4844), boosting scalability and reducing layer-2 fees. Meanwhile, Ethereum Layer 2s witnessed a surge in active users to 3.5 million, with transaction throughput reaching new highs. The Dencun upgrade is expected to further reduce Layer 2 transaction costs by introducing Binary Large Objects (blobs), making transactions significantly cheaper. ZkSync Era led the Layer 2s in active users, likely driven by airdrop speculation, while Linea saw a record transaction volume and user activity.

Qatari Billionaire's Bitcoin Buzz

Bitcoin's recent surge past $66,000 has sparked widespread speculation of a significant purchase by a Qatari billionaire following the Bitcoin Atlantis conference, with rumors fueled by the sighting of a Qatari jet. Discussions have been ignited on social media, with notable figures like Max Keiser and Anthony Scaramucci commenting on the possibility of Qatar adding Bitcoin to its balance sheet. The speculation is based on various hints, including a high-profile visit by the Emir of Qatar to El Salvador and cryptic predictions by Edward Snowden about a national government buying Bitcoin. 

Additionally, the activities of a mysterious Bitcoin wallet, known as "Mr100," holding over 51,164.74 BTC worth $3.32 billion, have further fueled these rumors, suggesting a significant move by an entity outside the US, possibly Qatar, into Bitcoin investment.

BlackRock's Bitcoin ETF Draws Billions

BlackRock's iShares Bitcoin ETF achieved $203 million in inflows on March 1st, contributing to a record week with $1.7 billion in net inflows across US bitcoin funds, despite a $492 million outflow from Grayscale's fund. Total crypto fund inflows hit $7.6 billion year-to-date, with Bitcoin attracting 94% of recent weekly inflows of $1.73 billion. Ethereum-focused products saw $85 million in inflows, the highest since July 2023. 

BlackRock's ETF rapidly amassed $10 billion in AUM in just over seven weeks, outpacing the growth of the first US gold-backed ETF. Crypto investment products' AUM is nearing an all-time high of $83 billion, with trading volumes exceeding $30 billion, at times accounting for half of global Bitcoin trading volumes.

Hong Kong SFC Warns Against BitForex

Hong Kong's Securities and Futures Commission (SFC) has issued warnings about BitForex, a virtual asset trading platform suspected of fraud, for not being licensed and for users' difficulties in withdrawing assets, leading to a shutdown and potential $57 million outflow. Simultaneously, the SFC has flagged six websites for impersonating licensed exchanges HashKey and OSL, with victims reporting withdrawal challenges and demands for excessive fees. The Hong Kong Police Force is working to block access to these fraudulent sites and social channels, highlighting the risks of trading on unregulated virtual asset platforms.

China Reiterates Crypto Warnings

China's state media warns against cryptocurrency risks amid Bitcoin's price surge, citing concerns over capital flight and financial instability. The government banned crypto activities in 2021 but didn't outlaw individual ownership. Despite this, Binance saw significant activity from Chinese users, accounting for around 20% of its global trading volume in 2023. 

Tether's Market Cap Hits $100 Billion

Tether's USDT stablecoin surpasses a $100 billion market cap, marking a 9% year-to-date growth. USDT leads the stablecoin market, notably surpassing competitors like USDC. Tether backs each USDT token 1:1 with assets like U.S. Treasury Bills, showing a profitable quarter. Concerns linger over asset quality, despite continued efforts to shore up security and reduce risks.  

Omni Network's Major Ether Deal

Omni Network secures $600M Ether deal from Ether.Fi for EigenLayer restaking, enhancing security for its network. EigenLayer, with a TVL of $10.3B, received $100M funding from a16z and $50M from Blockchain Capital. Liquid staking thrives on DefiLlama, with $54.7B TVL; EigenLayer leads restaking protocols with 99.96% TVL share, gaining investor interest.  

US Government's Bitcoin Holdings Grow

The US government continues to amass large amounts of Bitcoin through seizures, now holding nearly 1% of the circulating supply. Recent transfers totaling $922 million from Bitfinex hackers have further expanded their holdings, highlighting the government's substantial leverage in the industry. This trend aligns with growing global acceptance of Bitcoin in traditional finance.  

Nigeria and Binance's Regulatory Tussle

Binance executives were reportedly summoned by Nigeria's House of Representatives over allegations affecting the naira exchange rate, with potential consequences for non-compliance. The Nigerian government accused Binance of financial crimes, prompting a $10 billion fine claim, which Binance denied, stating a lack of knowledge about the fine and refusing to pay for the release of detained executives. Discussions between Binance and the Nigerian government aim to resolve issues, but the presidential adviser retracted the $10 billion fine statement, clarifying no specific mention of Binance being informed about it.

Worldcoin Nears 4 Million Users

Worldcoin's user base nears 4 million with rapid growth, amidst global privacy probes. The blockchain project, co-founded by Sam Altman, uses iris scanning for human identity verification and has integrated with major platforms. South Korea and other jurisdictions are investigating its data practices. Despite this, WLD token price surged 246% in the past month.  

Taiwan's Upcoming Digital Currency Laws

Taiwan plans to introduce new digital currency laws in September 2024 to safeguard investors and regulate the digital asset market. The draft bill aims to protect customers and supervise the industry, proposing fines for unlicensed virtual asset service providers. Taiwan also considers accepting spot Bitcoin ETFs, while prohibiting foreign VASPs without regulatory approval.  

Telegram's TON Token Sale Strategy

Telegram plans to sell TON tokens below market prices, aiming to reduce its supply concentration. CEO Pavel Durov emphasizes decentralization benefits and ad revenue-sharing initiatives to boost investor optimism. TON's price rallied post-announcement. The private sales involve locking TON for up to four years with a linear unlocking schedule, while also providing fiat liquidity for Telegram.  

FTX's Creditor Claim Deadline Set

FTX Digital's liquidator sets May 15, 2024, as the deadline for creditors to file electronic claims through a PwC-managed portal. The first payouts in USD are expected between late 2024 and early 2025. FTX Digital Markets and FTX Trading Ltd. have agreed to merge assets for coordinated creditor payouts, ensuring fair treatment for all claimants.  

Meme Tokens' Market Surge

Meme tokens have reached a combined market capitalization of over $50 billion, with a notable increase to $52,037,190,398, marking a surge of 18.07% and a trading volume spike of 32.28% valued at $17,254,856,236. This growth is attributed to viral social media trends, community engagement, and retail investor enthusiasm. Despite concerns about volatility and speculative nature, meme tokens like Dogecoin and Shiba Inu have gained significant traction. Meanwhile, the broader crypto market has surpassed $2.5 trillion, with meme coins outperforming sectors like DeFi and NFTs, with Messari reporting a $40 billion market cap for meme coins.