Coin360 Daily Dispatch | Crypto Market Updates & Highlights | August 6, 2024

This article comes to you with the generous support of Betplay.io. Discover the excitement and rewards that await you at Betplay.io with a 100% welcome bonus and 10% weekly cashback!

Crypto Market Update

Table of Contents

Crypto Market Updates

• Bitcoin Rebounds Amid Market Volatility
• Whale Accumulates Ethereum During Market Dip
• US Bitcoin ETFs Experience Significant Outflows
• Semler Scientific Increases Bitcoin Holdings

Crypto Security and Hacks

• Ronin Network Recovers Lost Funds from Hack
• WazirX Pursues Legal Action After Hack

Regulatory and Legal Developments

• SEC Resists Coinbase's Subpoena Requests
• Democrats Push to Ban Political Betting Contracts
• India Demands $86M in GST from Binance

Stablecoins and Financial Products

• Ethena Maintains Stablecoin Peg Amid Downturn
• Pendle Finance Launches Yield Tokens

Corporate and Industry News

• Starknet Foundation CEO Resigns
• TrumpCoin Plummets Amid Controversy
• Transak Introduces Wire Transfers for US Buyers

Bitcoin Rebounds Amid Market Volatility

Bitcoin rebounded 13% at one point to approximately $56,900, driven by US market support and increased buying on Coinbase, with trade volume reaching $8.1 billion, the highest since March 2024. Despite a brief plunge below $50,000, experts like Matt Hougan of Bitwise see a buying opportunity. Concurrently, the U.S. government moved 300 ETH worth $700,000 to Bybit, raising sell-off concerns amid Ethereum's decline. However, Ethereum rebounded 8% to over $2,500. Both assets face market volatility, influenced by macroeconomic factors and potential policy updates from the Fed and Bank of Japan.

Whale Accumulates Ethereum During Market Dip

A mysterious whale with over $1.57 billion in assets quietly accumulated Ethereum during a market dip. Known as "7 Siblings," this entity purchased $129 million worth of ETH as its price dropped to $2,305, following a strategic buying spree over 12 hours. Other whales also joined in, purchasing a total of 144,071 ETH amid the market correction. Ethereum is currently trading at $2,511.

US Bitcoin ETFs Experience Significant Outflows

US spot bitcoin ETFs saw $168 million in net outflows on Monday amidst market turbulence. Grayscale’s GBTC led with $69.12 million outflows, followed closely by Ark Invest and 21Shares’ ARKB with $69 million. Fidelity’s bitcoin fund reported $58 million outflows. The sector also experienced significant volatility, influenced by global equities and macroeconomic factors.

Semler Scientific Increases Bitcoin Holdings

Semler Scientific has bolstered its Bitcoin holdings by purchasing $6 million worth of BTC, despite facing a 17.41% loss on its overall investment. This move follows the firm's strategy to integrate Bitcoin into its treasury, with plans to raise $150 million through securities to further fund its cryptocurrency acquisitions.

Ronin Network Recovers Lost Funds from Hack

The Ronin Network recently recovered $12 million lost in a bridge exploit, with $500,000 awarded to ethical hackers. The incident involved 4,000 ETH and $2 million in USDC, rectified through swift actions and audits. This follows a major $622 million hack earlier this year. Security flaws in the Ronin Bridge were identified, underscoring ongoing risks in crypto infrastructure.

WazirX Pursues Legal Action After Hack

WazirX responded to a significant hack by filing an FIR under IT Act sections 66(B) and 153A, signaling serious pursuit of the case. The exchange abandoned plans to distribute losses after facing backlash, opting instead to seek a $230 million investment and explore partnerships. This move underscores their commitment to recovering and strengthening security measures.

SEC Resists Coinbase's Subpoena Requests

The SEC is resisting Coinbase's broad subpoena requests for SEC Chair Gary Gensler's pre-SEC emails, calling them excessive. Coinbase aims to challenge SEC's crypto regulations using Gensler's correspondence. This legal clash underscores tensions between a major crypto exchange and the regulatory body.

Democrats Push to Ban Political Betting Contracts

Senator Elizabeth Warren and other Democrats are pushing the CFTC to ban political betting contracts, citing concerns over election integrity. Polymarket reports over $500 million in bets on the 2024 US presidential race, prompting fears of manipulation and public trust erosion in democracy. It came as Kamala Harris strategically chose Minnesota Governor Tim Walz as her running mate, aiming to boost electoral appeal. 

Walz's focus on regulating crypto kiosks in Minnesota adds a unique angle. Initially an underdog in predictions against Josh Shapiro, his selection over Shapiro hints at Harris' evolving campaign tactics towards the crypto industry's interests. After rumors circulated that Tim Walz might be Kamala Harris' VP pick, meme coins surged in value. However, the excitement quickly faded, leading to a sharp crash in their prices. 

India Demands $86M in GST from Binance

India's Directorate General of GST Intelligence (DGGI) has demanded $86 million in GST from Binance for transaction fees from Indian customers, marking the first major regulatory action against a crypto firm in India. Binance allegedly earned approximately $476 million from Indian transaction fees, underscoring significant tax compliance challenges for global crypto exchanges.

Ethena Maintains Stablecoin Peg Amid Downturn

Ethena navigated a significant Ethereum market downturn without its USDe stablecoin de-pegging, managing $50M in redemptions smoothly. Despite initial panic, USDe maintained its $1 peg and saw strategic deployment in Bybit's perpetual swaps. The protocol's resilience highlights its ability to handle market stress, though risks remain in high ETH funding fees and stablecoin stability during crises.

Pendle Finance Launches Yield Tokens

Pendle Finance has launched PT-weETH and PT-sUSDe on Term Structure, bolstering yield token utility. They offer a 12% APY on Ethereum with maturity this month. This move has boosted Pendle's token value by 40%. Upbit's support for Pendle's markets aims to enhance capital efficiency, drawing interest from dYdX users exploring the platform.

Starknet Foundation CEO Resigns

Diego Oliva, CEO of Starknet Foundation, has resigned from his position, effective immediately. He had held the role since March 2023. James Strudwick, who joined the foundation in January 2024, will succeed him as executive director. Oliva will assist in the transition over the coming month. Under Oliva's leadership, Starknet launched the Provisions project and several ecosystem development initiatives.

TrumpCoin Plummets Amid Controversy

TrumpCoin (DJT), a Solana-based memecoin linked to Barron Trump and Martin Shkreli, plummeted over 98% as liquidity vanished. Shkreli accused Barron of orchestrating the crash by withdrawing liquidity, reducing DJT's market cap from $56 million to below $500,000 before a partial recovery. Barron has not confirmed involvement, casting doubt on the token's origins amid controversy.

ransak Introduces Wire Transfers for US Buyers

Transak introduces wire transfers for US crypto buyers, offering a convenient method with a 1% fee and high transaction limits. This new service aims to enhance security and accommodate larger transactions, setting it apart as the first fiat-to-crypto platform to offer such an option. It targets increased adoption by simplifying access to cryptocurrencies for American users.