Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 11, 2023

Bitcoin Price Fluctuations Amid Economic Events

Bitcoin's recent price dynamics have been tumultuous, with a sharp decline to under $42,000, wiping out gains from the previous week's high of $45,000. This downturn, one of the largest in recent times, was driven by various factors, including robust U.S. economic data, short-term holders’ profit-taking, and macroeconomic fundamentals, leading to over $426 million in crypto futures liquidations in the past 24 hours. 

Despite being down 10% from its year-to-date high, this pattern aligns with historical bullish trends in the crypto market. Upcoming economic events, including the Federal Reserve's interest rate decision and U.S. inflation data release, are expected to bring volatility. 

The Fed's anticipated steady interest rates and the projected slight drop in November's CPI inflation data could significantly impact market movements, with Bitcoin already showing signs of retreat.

Ethereum's Major Price Swing and Recovery

Ethereum experienced its largest price swing in two years, resulting in liquidations of long positions worth over $82 million. The ETH price crashed below $2,200 due to significant selling pressure from large holders and macroeconomic uncertainty. Whales selling off their holdings and impending CPI and inflation data releases contributed to market volatility. Ethereum has shown signs of recovery and may reclaim the $2,300 level if Bitcoin's price continues to rise.  

Crypto Investment Products' Continued Inflows

Crypto investment products saw an 11-week streak of inflows, adding $43 million last week, totaling $1.8 billion. Bitcoin remained popular, but experienced decreased inflows. Investors allocated $8.6 million into Short Bitcoin products last week, representing 20% of total crypto inflows. 

Despite skepticism, 11 consecutive weeks of inflows into crypto investment products continued, reaching $43 million. Notably, Bitcoin attracted $20 million, contributing to a year-to-date total of $1.7 billion. Ethereum saw its sixth week of inflows, reversing previous outflows. 

AVAX Token's Market Surge

AVAX token surges 9% amidst market correction, reaching $35.63. Large transactions peak at nearly 1,000, signaling a bullish trend. Active bank involvement in RWA tokenization on Avalanche network boosts price. On-chain activity and addresses show upward trajectory, with 1.93 million transactions and 6.12 million total addresses with balance.  

BlackRock's SEC Warning Over Bitcoin Classification

BlackRock warns the SEC that classifying Bitcoin as a security could disrupt trading and lower its value, referencing Ripple's legal battles. They fear a similar decline in value to Ripple's XRP. The SEC's decision on Bitcoin's status, possibly in January, has sparked anticipation. Ripple's struggles demonstrate the potential consequences of SEC actions on cryptocurrency valuation.  

SEC's Accusations Against Binance

The SEC accuses Binance and Changpeng Zhao of deliberately violating U.S. law, highlighted by a $4.3 billion settlement. Binance allegedly evaded regulations to attract U.S. users. The SEC also warns of crypto investment risks, emphasizing market volatility and fraud, and notes the lack of regulatory protections for crypto exchanges.

Google's Updated Crypto Ads Policy

Google is updating its crypto ads policy to allow advertising of "Cryptocurrency Coin Trusts" in the U.S., effective Jan. 29. This includes financial products enabling trading in trusts with large digital currency pools. The policy, applying globally, requires Google certification and adherence to local laws. Violations will lead to account suspension after a prior warning. 

This change coincides with anticipated approvals of spot bitcoin ETFs in the U.S., with decisions expected from the SEC in mid-January on applications from firms like BlackRock and Grayscale. Google's stance on crypto ads has evolved since its 2018 ban, recently allowing NFT game promotions with restrictions.

Uniswap v3 Deployment on Rootstock

Uniswap version 3 (v3) has been deployed on Bitcoin sidechain Rootstock by GFX Labs, expanding DeFi opportunities. Oku, the team behind the trading terminal, will offer Rootstock trading tools. This merger brings Ethereum's smart contracts and Bitcoin's security to enable on-chain swaps, liquidity depth, and yield opportunities on Bitcoin's network, boosting DeFi potential.  

SBI Holdings and Saudi Aramco's Crypto Venture

SBI Holdings considers a partnership with Saudi Aramco, planning semiconductor projects and mutual crypto investments. Saudi Arabia aims to become a major crypto hub, leading in transaction growth globally. MENA's crypto economy is valued at $390 billion, ranking sixth in the world. A Japanese-Taiwanese partnership also plans a semiconductor factory in Japan.  

HTX's Troubled Waters After Security Breaches

HTX experienced a $258M net outflow following a $30M hack. Three attacks in three months targeted HTX, Heco Bridge, and Poloniex, linked to Justin Sun. HTX's reserves shifted from 46.2% BTC, USDT, and WETH to over 58% TRX, HT, and stUSDT. Users' concerns are evident due to the exchange's security issues and asset composition.  

Ledger Live Software Raises Privacy Concerns

Sleuths discovered Ledger Live software, used with Ledger hardware wallets, transmitting extensive user data to a service called segment.io. This includes crypto transactions and asset information. Users can disable some analytics. Speculation abounds on Ledger's intent, from potential commercial resale to internal use. Concerns stem from the compromised trust due to previous controversial actions by Ledger.  

Goldman Sachs' Fed Rate Forecast Update

Goldman Sachs revised its forecast for the Fed's first interest-rate cut to Q3 2024, citing bullish factors such as an expected spot ETF launch and declining U.S. Treasury yields. Fed funds futures traders anticipate a decline in the benchmark interest rate from 5.25%-5.5% to 4% by the end of the next year, which may impact borrowing costs and risk-taking in the economy and financial markets.  

Solana's Bonk Coin Outperforms Pepe

Solana's Bonk (BONK) memecoin surged 370% in a month, becoming the third-largest memecoin with a market cap of $762 million, surpassing Pepe. Its revival was fueled by listings on major exchanges and a surge in derivatives trading. Despite a rocky start, Bonk's value skyrocketed by 6,215% in the past three months, outperforming established memecoins.  

Immutable's IMX Token Defies Market Trends

Immutable's IMX token has notably surged, bucking the trend amid a 5% market decline. IMX climbed 10% to $2.00, reaching a 20-month high and is up 83% over the last 30 days. Positive partnerships and predictions powered IMX community’s anticipation to see it enter the top 25 market cap coins, making it a standout performer in the current gaming token landscape.  

Top Altcoin Gainers and Losers

Gainers:

Injective INJ (+20.03%)

Immutable X IMX (+11.97%)

KuCoin Token KCS (+11.21%)

Losers:

Rocket Pool RPL (-20.91%)

Terra LUNA (-15.47%)

Terra Classic LUNC (-15.10%)