Coin360 Daily Dispatch | Crypto Market Updates & Highlights | April 15, 2024

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Crypto Market Update

Table of Contents

Crypto Market Fluctuations

• Bitcoin Climbs Past $66K Despite Rising Commodity Prices
• Ethereum Drops Against Bitcoin, ETF Prospects Rise
• Net $126M Outflows from Crypto Investment Products
• NEO Leads Crypto Recovery with Ecosystem Growth

Regulatory and ETF Developments

• Spot ETF Approvals Mark Milestone in Crypto Market

Banking and Custodial Services

• LBBW to Offer Crypto Custody Services in 2024
• $1.7 Million Lost in Tokenization Protocol Hack

Exchange and Platform Updates

• South African Exchange VALR Obtains CASP Licenses
• Whale Boosts Ethena Token Amid Price Volatility
• Arbitrum's "Cliff Unlock" Event to Impact Token Price
• Solana Network Update Sparks Token Price Surge
• Crypto Market Volatility Threatens Major Liquidation
• Buterin's Privacy Advocacy Spurs RAIL Token Surge
• Adidas and Stepn NFT Collaboration Launches

Bitcoin Climbs Past $66K Despite Rising Commodity Prices

Before seeing a brief down to $63,000 today, Bitcoin’s price had rebounded to around $66,000 after touching lows near $60,800 was noted after the Iran - Israel tensions, despite concerns that rising commodity prices due to geopolitical issues could dampen bullish sentiment. There is a focus on the approaching Bitcoin halving, which historically influences price movements, with some predicting BTC could reach $70,000. However, it’s worth noting that the recovery appears lackluster without significant whale participation, as large holders are not aggressively accumulating more Bitcoin, potentially anticipating a further drop. 

Additionally, market metrics such as the short-term holders' cost basis and elevated Bitcoin funding rates suggest that the market may be overheated, with risks of another price correction looming. Overall, traders are advised to monitor ETF flows and the impact of regulatory and macroeconomic developments closely.

Ethereum Drops Against Bitcoin, ETF Prospects Rise

Ethereum's price has fallen to a three-year low against Bitcoin, down by about 33% since the Merge. Analysts see this as a potential buying opportunity, especially with the upcoming Hong Kong Ethereum ETFs. Aligning with their comments, Ethereum whales have been actively buying ETH, showing resilience despite recent market dips, spurred by approvals of Hong Kong-based Bitcoin and Ether ETFs. On the other hand, Ethereum funds have recorded five consecutive weeks of losses, totaling $118 million in outflows, amid geopolitical risks and dimming hopes for U.S. spot Ethereum ETFs. The contrasting trends reflect a complex interplay of market optimism and investor caution.

Net $126M Outflows from Crypto Investment Products

Last week saw significant net outflows of $126 million from cryptocurrency investment products, driven by $767 million of outflows from the Grayscale Bitcoin ETF (GBTC). Additionally, the United States experienced the largest outflows at $145 million, while Germany saw net inflows of $1.7 million. Altcoins, including Ethereum, also witnessed net outflows.  

NEO Leads Crypto Recovery with Ecosystem Growth

After a significant downturn due to Middle Eastern tensions, some cryptocurrencies started to recover today, including ONDO and TON. NEO was among the cryptos that led the market's recovery, surging 36% following a weekend crash. NEO's recent success can be attributed to its growth in the NEO X ecosystem and the support for the token, amid favorable developments in the Chinese regulatory environment.  

Spot ETF Approvals Mark Milestone in Crypto Market

The Hong Kong Securities and Futures Commission has approved spot Bitcoin and Ethereum exchange-traded funds (ETFs), marking a significant milestone in the region's crypto market. Prominent asset managers, including China Asset Management, Bosera Capital, and Harvest Global Investments, are involved, with the ETFs expected to launch by the end of April.  

LBBW to Offer Crypto Custody Services in 2024

German bank LBBW will launch crypto custody services in H2 2024 in collaboration with Bitpanda. The move caters to rising corporate demand for digital assets like Bitcoin and Ethereum. LBBW aims to support its corporate customers' crypto strategies and explore new business models using blockchain technology, ensuring trust, security, and regulatory compliance.  

$1.7 Million Lost in Tokenization Protocol Hack

Grand Base, a real-world asset tokenization protocol on Coinbase's layer-2 blockchain, suffered a $1.7 million loss due to a private key compromise, resulting in stolen tokens and a plummet in token value. The hacker exploited the system by minting unauthorized tokens. Users were cautioned to avoid interacting with the compromised contract.  

South African Exchange VALR Obtains CASP Licenses

VALR, a leading crypto exchange in South Africa, obtains Category I and II CASP licenses from the FSCA, positioning it as a pioneer in regulatory compliance. With over 1,000 institutional clients and half a million traders globally, VALR offers advanced trading services and emphasizes compliance, security, and innovation in serving the crypto community.  

Whale Boosts Ethena Token Amid Price Volatility

Ethena (ENA) token’s surge today was supported by a significant whale who withdrew and staked 18.12 million ENA tokens despite price fluctuations. Market cap rose by 2.88% to $1.666 billion, with a volume drop of 32.11%, yet the strong 54.16% volume/market cap ratio indicates sustained investor interest.  

Arbitrum's "Cliff Unlock" Event to Impact Token Price

Arbitrum is set to conduct a "Cliff Unlock" event on April 16, 2024, releasing 92.65 million ARB tokens, worth about $116.73 million. Similar events have resulted in short-term price fluctuations, with the previous Token Unlock causing a 25% price drop before recovery. Other projects, such as Axie Infinity and Immutable X, are also unlocking substantial token amounts this week.  

Solana Network Update Sparks Token Price Surge

Solana developers have launched the v1.17.31 update to alleviate network congestion, with further upgrades planned. Anza, a Solana-focused devshop, outlined the improvements, including enhanced visibility into staked versus non-staked packets and refined treatment of nodes. Following the news, Solana's native SOL token surged 10%, reaching $156 before a slight correction to $152.  

Crypto Market Volatility Threatens Major Liquidation

Over the weekend, Curve founder Michael Egorov faced potential liquidation due to CRV's drop to $0.42, mortgaging 371 million CRV valued at $156 million. The health rate reached a critical 1.1. Crypto market volatility led to significant liquidations on both centralized and decentralized exchanges, with losses totaling $1.556 billion and $120 million, respectively, conveying widespread impact.  

Buterin's Privacy Advocacy Spurs RAIL Token Surge

Ethereum co-founder Vitalik Buterin's advocacy for privacy in crypto transactions, exemplified by his use of RailGun, led to a 150% surge in the native RAIL token's price and a 10,000% increase in trading volume. This sparked over 5% price increases in top privacy-focused digital assets. However, such privacy tools are drawing increased regulatory scrutiny.