Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 25, 2024

Bitcoin's Varied Market Reactions: Stability, Whales, and Binance Support

Bitcoin's stability amidst a U.S. GDP growth of 3.3% contrasts with its 20% plunge following the introduction of spot Bitcoin ETFs. Reddit users actively bought the dip, diverging from other platforms' bearish views. 

Some whales accumulated over $50 million in BTC in three days, while others initiated a selling spree. Despite Bitcoin struggling below $40,000, significant Binance bid liquidity suggests underlying support. The ETFs, though currently pressuring prices, hint at long-term market optimism.

Ethereum's Market Shifts: Whale Accumulation and Exchange Activity

Ethereum whales accumulated over $64 million in ETH, adding 26,841 ETH in one day during a price drop. Significant withdrawals from exchanges included 7,779 ETH from Binance and 8,077 ETH from Bitfinex. Contrarily, Ether options market showed a bearish sentiment, with a one-week call-put skew at -8, indicating a preference for price decline bets. Ether traded at $2,210.

Bitwise Bitcoin ETF Gains and Losses

Bitwise's Bitcoin ETF, after revealing its on-chain address, received BTC donations, including 6969 sats. It holds 12,338 BTC, worth around $490 million. U.S. spot bitcoin ETFs saw a record $158 million outflow in one day, with Grayscale's GBTC losing $429 million. BlackRock's IBIT and Fidelity's FBTC gained $66 million and $126 million, respectively. Total net inflows stand at $824 million.

Changpeng Zhao's Legal Troubles in the US

Changpeng Zhao, the former CEO of Binance, was denied permission to leave the US for the UAE despite offering to pledge his $4.5 billion stake in Binance US. Zhao, facing charges for anti-money laundering violations, sought to travel for a relative's surgery. His request, including additional property and financial security, was rejected due to concerns about him not returning. 

Zhao, who stepped down following a $4 billion settlement with the US government, is awaiting sentencing and is considered a flight risk due to his substantial wealth and minimal ties to the US. Binance, meanwhile, has recovered from setbacks and seen significant inflows since the settlement.

Tesla's Bitcoin Holdings in Q4

In Q4, Tesla did not trade Bitcoin, indicating its retention of 9,720 Bitcoin. The company's Q4 report revealed $25.2 billion in total revenues, a 3% year-on-year increase, with net income reaching $7.9 billion, a notable rise from the previous year. Earnings per share were slightly lower than analyst forecasts, at 71 cents.  

SatoshiVM Token Controversy Heats Up

The SatoshiVM (SAVM) token controversy involves allegations between its adviser, MacnBTC, and Ape Terminal, each accusing the other of scams post-launch. SAVM's price dropped 38% amid these claims. MacnBTC alleges Ape Terminal unfairly allocated SAVM tokens to its team, profiting millions. Ape Terminal counters, accusing MacnBTC of similar gains. Both deny the accusations, with the crypto community viewing the situation skeptically.

Phishing Scam Targets Bitcoin and XRP Users

Trezor issued a warning about a phishing scam targeting Bitcoin and XRP users, involving a deceptive email urging an "urgent" wallet upgrade. The attack, leveraging a third-party email provider, mimicked Trezor's domain to trick users into revealing their recovery seeds. Following a support portal breach, Trezor deactivated the malicious link, advising affected users to transfer funds to new wallets.

Ozys Hacked, North Korea Suspected

Ozys, a South Korean blockchain company, incurred an $81.5 million hack on its Orbit Bridge protocol. The former chief information security officer is accused of weakening the company's firewall before the breach. Ozys is exploring North Korea's Lazarus Group's potential involvement and is taking legal action and collaborating with authorities to recover the stolen assets.  

UK's Digital Pound Exploration

The Bank of England and HM Treasury have not made a final decision on launching a digital pound but are exploring the feasibility and designs of a central bank digital currency (CBDC). They intend to prioritize privacy and control and protect access to cash. The digital pound, or 'Britcoin,' is not expected to launch before 2025.  

Polygon Labs Unveils AggLayer

Polygon Labs is launching AggLayer, a protocol to unify blockchain networks, enhancing user experience by making multiple chains feel like one. It leverages zero-knowledge proofs for seamless integration of layer 1 and 2 blockchains. Concurrently, Polygon and Warner Music Group's Web3 Music Accelerator program is advancing music industry innovation, supporting projects like MITH and Muus Collective, which focus on artist-fan engagement and digital collectibles.

Worldcoin's New User-Friendly Orb

Worldcoin plans to release a new, friendlier Orb with alternative colors and shapes for a user-friendly iris scanning experience. The company aims to reach billions of users rapidly and has raised $250 million in funding. Despite criticism, over 3 million users have signed up for Worldcoin, with the new Orb design currently undergoing field testing.  

Synthetix Launches V3 Perpetuals on Base

Synthetix has launched V3 perpetuals contracts on Base, offering simplified derivative product launches and trading. New products are expected, including a perpetual futures exchange called Infinex. The upgrade includes diversified collateral options and new features like cross margin capabilities and permission delegation. Synthetix aims for decentralized governance and fee earnings from diverse collateral across multiple chains.  

Sygnum Bank's Successful Funding Round

Sygnum, a Swiss crypto bank, closed a $40 million funding round, valuing the firm at $900 million. It previously closed a $90 million funding round in January 2022, valuing the firm at $800 million. The bank's assets under management have grown to $4 billion, serving 1,700 clients from over 60 countries. The funding will support expansion into new markets.  

Bitcoin Inscription Tokens' Market Performance

The underperformance of Bitcoin Inscription tokens ORDI and SATS is attributed to Bitcoin's "sell-the-news" sentiment and declining demand. ORDI and SATS have dropped by about 34.50% and 50% in 2024, respectively. Their price movements correlate strongly with Bitcoin, with ORDI directly inscribing data onto Bitcoin's blockchain—leading to a close alignment with BTC's performance.  

AltLayer's Token Launch and Valuation

AltLayer's native token (ALT) began trading on exchanges with $300 million in volume, creating a $2.9 billion fully diluted valuation. The project opened a 300 million ALT airdrop, representing 3% of the total supply, with 33% already claimed. ALT token holders can engage in governance and pay protocol fees, while rollup services and restaked rollups are part of the project's offerings.  

Top Altcoin Gainers and Losers

Gainers:

Bittensor TAO (+11.44%)

Pyth Network PYTH (+7.04%)

OKX OKB (+6.11%)

Losers:

Sui SUI (-9.96%)

Blur BLUR (-9.89%)

Celestia TIA (-9.32%)