Coin360 Daily Dispatch | Crypto Market Updates & Highlights | February 17, 2024

Bitcoin Whales' Bullish Accumulation

Bitcoin whales amassed $5 billion in BTC within ten days, signaling bullish sentiment post $50,000 surge and coinciding with spot Bitcoin ETF launches attracting $4.5 billion in net flows. Mixed signals surround the rally, supported by strong trading volumes but stalling at the $52,000 resistance, prompting sustainability concerns. 

Institutional investors notably drove the rally, contributing to a supply squeeze, while improved market liquidity propelled Bitcoin's 20% price increase in 2022. Meanwhile, mining difficulty surpassed 80 trillion, indicating a doubling over the last year, with an anticipated halving event impact leading to potential adjustments in difficulty.  

Ethereum Gains Whale's Favor Over Bitcoin

A notable crypto whale transitioned from Bitcoin to Ethereum, converting 280 Wrapped Bitcoin (WBTC), valued at $14.6 million, into 5,150 ETH through Aave, signaling a bullish stance on Ethereum amidst its outperformance against Bitcoin. Ethereum's price trajectory towards $3,000 is supported by a recent 21.5% gain, with the backdrop of a potential U.S. ETF listing enhancing its appeal. However, historical data suggests caution at this price level. For instance, a 42% gain in early April 2022 was followed by a 46% drop over the subsequent 40 days.

Spot Bitcoin ETFs Captivate Investors

Spot Bitcoin ETFs have surged, with U.S.-based funds reaching over $37 billion in assets under management (AUM), capturing a significant market share akin to one-third of gold ETF assets. In January alone, Bitcoin ETFs dominated 83% of the AUM from all new ETF launches, despite constituting only 14% of the new products. This remarkable influx highlights Bitcoin's growing appeal among investors. Additionally, a record $323.90 million net inflow was observed in one day, pushing the total to $5 billion. BlackRock's iShares Bitcoin ETF (IBIT) leads with over 119.6K BTC, valued at more than $6.2 billion.

Worldcoin's Rally Amid AI Crypto Fusion

The Worldcoin (WLD) token, founded by OpenAI's Sam Altman, surged by over 12% to $4.39 amid the launch of Sora, an AI model. The crypto rally also boosted Bittensor (TAO) by 7% and Fetch.ai by 5%. Investors speculate on the value at the intersection of AI and crypto, aiming to decentralize AI and verify content authenticity on the blockchain.   

Celsius Returns Billions to Creditors

Celsius distributes $2B of crypto to 172K creditors, with 75% collected. PayPal and Coinbase manage distribution. Non-compliant creditors face delayed distribution. Speculation on market impact. Rescue funds recall assets for timely repayment. Former CEO's trial set for 2024. Legal scrutiny over potential conflict of interest in representing multiple bankrupt crypto entities.  

Meanwhile, Coinbase and Circle call for increased U.S. regulation of digital asset firms, citing concerns about Tether's role in alleged terrorist financing. Tether's CEO defends the company's compliance efforts, emphasizing cooperation with global law enforcement and adherence to OFAC sanctions. 

VanEck Navigates SEC Hurdles for Ethereum ETF

VanEck's updated S1-A filing for an Ethereum ETF faces SEC delays due to concerns about Ethereum's proof of stake transition. Despite delays, there's a 60% chance of approval by May, supported by positive feedback from SEC commissioner Hester Peirce. VanEck settled with the SEC for $1.75 million over undisclosed influencer involvement in a previous ETF launch. Additionally, a fee reduction was announced for its HODL Bitcoin ETF amidst a competitive ETF market.  

Honduras Bans Banks from Crypto Transactions

The National Banking and Securities Commission of Honduras banned banks from handling cryptocurrencies due to lack of regulation, citing risks of fraud, money laundering, and terrorism financing. The resolution, effective immediately, also prohibits supervised institutions from holding crypto-based derivative instruments. Despite this, Honduras is home to Bitcoin Valley and Próspera, where crypto is being embraced.  

Digital Euro to Enhance Privacy and Security

ECB Executive Board member Piero Cipollone addressed the European Parliament on the digital euro, emphasizing privacy protections and infrastructure collaboration within the EU. The digital currency aims to provide superior privacy and security compared to commercial payment solutions, with plans for minimal data collection, top-tier cybersecurity, a digital euro rulebook, and measures to ensure financial stability.  

Solana and Filecoin Forge Decentralized Storage Partnership

Solana and Filecoin have partnered to enhance decentralized storage solutions in the blockchain industry. Filecoin's capabilities will improve data accessibility and usability for Solana users, driving innovation and adoption. The collaboration aims to revolutionize data storage, promoting security, accessibility, and reliability. This signals a pivotal shift towards decentralization with significant implications for the industry.  

Coinbase Supports Bitcoin Developers with Major Donation

Coinbase is donating $3.6 million to Brink as part of its winding down of GiveCrypto. Brink focuses on boosting the Bitcoin protocol through research, development, and supporting the developer community. The funds will directly support Bitcoin developers. Previously, Brink received $5 million from Jack Dorsey's funding initiative and 5% of VanEck's spot Bitcoin ETF profits.  

Binance's Futures Challenge Aims to Dominate

Binance announced a Futures Ultimate Challenge to boost activity on its crypto derivatives platform, offering prizes including a Tesla Model Y. With $24.05 billion in Bitcoin open interest, Binance controls nearly 25% of the market share. The initiative reflects Binance's aspiration to compete not just within crypto but also against traditional finance entities.

Crypto Trader Falls Victim to Phishing Scam

A phishing attack targeted a crypto trader, resulting in the theft of 180 million BEAM tokens worth $5.1 million from a trader named Kirill Marinov. The scammer exchanged the tokens for 1,629 ETH. BEAM's price dropped to as low as $0.027 post-heist before recovering to near $0.029. Phishing scams targeting crypto investors are a significant concern, emphasizing the need for heightened security measures.

Starknet's STRK Token Airdrop Excites the Community

Starknet's STRK token airdrop, set for Feb. 20 to June 20, is causing a buzz, with over 700 million tokens to be distributed among 1.3 million wallets, including Ethereum stakers and developers. The futures market for STRK is active, with a slight price dip but optimistic trading volumes. Meanwhile, a notable Ethereum whale, managing 1000 validators worth around $100 million, has clarified his eligibility for the airdrop amidst confusion with a centralized exchange.

Top Altcoin Gainers and Losers

Gainers:

Bitget Token BGB (+19.18%) 

Kaspa KAS (+17.18%) 

Siacoin SC (+16.82%) 

Losers:

Dymension DYM (-7.87%) 

VeChain VET (-7.37%) 

Render Token RNDR (-7.00%)