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

Crypto Market Update

Table of Contents

Major Market Movements

• Crypto Fear & Greed Index Hits Extreme Fear
• Ethereum Drops Below $3,000 Amid Market Correction
• Governments and Mt. Gox Transfer Large BTC Volumes
• Bitcoin ETF Inflows Surge Amid Market Downturns

Crypto Projects and Innovations

• Multicoin Capital to Match Solana Donations
• PancakeSwap Distributes zkSync Tokens to Community
• Maple Finance TVL Surges 123% in Q2
• Ether.fi Season 2 Airdrop Postponed

Business and Legal Developments

• Bitfinex's El Salvador Hotel Project Falls Short
• Celsius Litigation Administrator Seeks $100 Million

Regional Developments

• South Korea Delays Virtual Asset Tax Regulations

Blockchain and NFT News

• Pavel Durov Praises Hamster Kombat Growth
• 3AC Wallet Buys Neon Village NFT

Crypto Fear & Greed Index Hits Extreme Fear

Today, the Crypto Fear & Greed Index fell to 26, the lowest since early 2023, reflecting extreme fear as Bitcoin dropped to $53,500. Bitcoin’s recent price actions include a brief recovery to $56,000 but face potential declines to $47,000 or lower, which some analysts consider normal market pullbacks. 

The Mt. Gox estate began repaying creditors, raising concerns about potential market impacts, while large government BTC sales also contributed to market volatility. Analysts emphasize the importance of a weekly close above $60,600 to maintain current support levels and avoid further corrections.

Ethereum Drops Below $3,000 Amid Market Correction

On July 5, Ethereum (ETH) dropped below $3,000, erasing pre-ETF approval gains, reflecting a broader market correction led by Bitcoin (BTC), before reclaiming this level. Traders feared a prolonged downturn despite the upcoming Ethereum ETF. Additionally, the Mt. Gox estate and German government moving significant BTC volumes exacerbated the sell-off. Justin Sun faced a potential $66 million loss amid this decline. 

A Grayscale survey indicated that nearly 25% of U.S. voters might invest in ETH following ETF approval, though awareness remains low. The crypto market saw a slight recovery today, rising almost 4% to $2.06 trillion after a drop to $197 trillion. While the market remains bearish, many cryptocurrencies have regained value.

Governments and Mt. Gox Transfer Large BTC Volumes

Recently, the German and US governments, along with Mt. Gox, transferred a significant 17,788 BTC, valued at $1.08 billion. The German is currently holding approximately 40,526 BTC valued at $2.3 billion. This move caused a temporary drop in BTC and ETH prices below $54,000 and $2,900, respectively, though prices recovered slightly. The market reacted with high volatility and technical indicators like the "death cross" and neutral RSI at 51.15 highlighted the uncertainty. 

Bitcoin ETF Inflows Surge Amid Market Downturns

Bitcoin ETF inflows surged over $143 million on July 5, boosting Bitcoin's price above $56,000 amidst broader market downturns. The increase followed significant outflows from Grayscale's GBTC but strong inflows into other ETFs like Fidelity's FBTC and VanEck's HODL. This surge marked the highest inflow since June, offering relief amid recent market pressures.

Multicoin Capital to Match Solana Donations

Multicoin Capital will match every Solana donation to the Sentinel Action Fund until July 14. The conservative PAC supports four pro-crypto U.S. Senate candidates, aiming to foster responsible crypto innovation in America. Supported candidates include Sam Brown in Nevada and David McCormick in Pennsylvania, both highly rated by Stand With Crypto.

PancakeSwap Distributes zkSync Tokens to Community

PancakeSwap plans to distribute 2.45 million zkSync (ZK) tokens as part of a community reward program from July 5 to August 5. These tokens, originally unclaimed, will now support future development and community projects. The initiative aims to reward active contributors and new users alike, encouraging engagement and growth within its ecosystem.

Maple Finance TVL Surges 123% in Q2

Maple Finance's total-value locked (TVL) surged by 123% in Q2, reaching an all-time high of $230 million, driven by the launch of Syrup.fi, a retail-focused product. The platform's quarterly revenue also rose by 39%, outperforming the broader DeFi market's growth. Syrup.fi has already accumulated over $13 million in TVL since its June 25 debut.

Ether.fi Season 2 Airdrop Postponed

Ether.fi Season 2 airdrop claim, originally scheduled, is postponed to July 6, aiming for smoother integration. The update promises up to 150 ETHFI tokens for small stakers and introduces wallet validation with Chaos Labs to prevent Sybil activity. Participants must verify their wallets within 5 days to qualify. Ether.fi aims to distribute 5% more ETHFI tokens in this phase.

Bitfinex's El Salvador Hotel Project Falls Short

Bitfinex's ambitious project to build a Hilton hotel in El Salvador through crypto investments fell short of its $6.25 million goal, raising only $342,000. The initiative aimed to showcase digital currencies' potential for real-world ventures in El Salvador but struggled to attract sufficient funding. Despite setbacks, El Salvador remains committed to crypto integration, exploring new avenues like digital bonds to involve its citizens in investment opportunities. 

Celsius Litigation Administrator Seeks $100 Million

Celsius's Litigation Administrator filed legal action to recover $100 million from users who withdrew funds 90 days before the firm's bankruptcy. Over 1,500 account holders face potential returns, citing unfair benefits at others' expense. Separately, on July 5, Celsius and KeyFi CEO Jason Stone settled a three-year fraud dispute involving allegations of a Ponzi scheme and misrepresentation, resulting in missed millions for KeyFi.

South Korea Delays Virtual Asset Tax Regulations

Starting January 2025, South Korea will implement new tax regulations on virtual assets, impacting various tax types but not personal exemptions. The delay aims to address concerns about increased tax burdens on individual investors, clarifying aspects of income, gift, withholding, and corporate taxes related to cryptocurrencies. This adjustment provides stakeholders time to adjust to the forthcoming changes.

Pavel Durov Praises Hamster Kombat Growth

Pavel Durov, Telegram's CEO, lauded Hamster Kombat as the fastest-growing digital service, boasting 239 million users ahead of its token launch. The game, leveraging Telegram's blockchain, The Open Network, entices players with crypto rewards through token airdrops, aligning with a broader trend of gamifying blockchain experiences for mass adoption.