Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 31, 2024

Bitcoin's Market Reacts to Federal Reserve Decisions

Bitcoin's price stays near $43,500, with significant attention on upcoming Federal Reserve decisions. Market depth for Bitcoin has increased, reflecting heightened trading activity, according to Kaiko. JPMorgan Asset Management warns of potential over-optimism in markets regarding Fed rate cuts. Whale entities withdrew 100,000 BTC from exchanges, suggesting a possible trend shift. A survey of 10,000 investors indicates 84% expect Bitcoin to surpass its previous $69,000 high post-halving in 2024.

Ethereum's Dencun Upgrade and Ether Trading Surge

Ethereum's Dencun upgrade aims to reduce layer-2 scaling costs. Ether options trading volume hit a record $20 billion, led by Deribit. Standard Chartered predicts Ether's price to reach $4,000 by May amid potential U.S. approval for spot-based Ether ETFs. Ethereum's network sees intensified activity, with 484,000 unique daily addresses, coinciding with a price rebound, fueling market optimism.  

Ripple Co-Founder's Hack Impacts XRP Market

Ripple co-founder Chris Larsen's personal XRP accounts were hacked, leading to the theft of about 213 million XRP, valued at $112.5 million. This incident caused a nearly 5% drop in XRP's price, now trading at just over $0.50. Larsen clarified that Ripple itself was not attacked and that exchanges had frozen the affected addresses. Law enforcement is involved in the case. The hack and subsequent price drop also triggered over $4 million in leveraged XRP position liquidations, predominantly long positions.

Jupiter Token Airdrop Boosts Solana's Market

The Jupiter token airdrop for Solana-based wallets has seen substantial demand, with JUP opening at $0.42 and surging over 70% to $0.72 within an hour. JUP token soared to a $905 million market cap within 30 minutes of its 10 am EST launch, becoming the sixth-largest DEX. With 1 billion tokens airdropped to nearly 955,000 addresses, JUP's circulating supply is 1.35 billion. The project aims for community ownership but initially downplays token utility.  

Tether's Record Profit from U.S. Treasury Bonds

In Q4 2023, Tether posted record net profit of $2.85 billion, driven by $1 billion in U.S. Treasury interest. For the year, total net profit was $6.2 billion, with $4 billion from Treasury bonds. Assets include $80.3 billion in Treasurys, $2.8 billion in Bitcoin, and $3.5 billion in gold. Tether moved to higher-quality assets after 2022 crypto downturn.  

FTX Bankruptcy Update: No Revival, Customer Repayment Plan

FTX, a bankrupt crypto exchange managed by Sam Bankman-Fried, anticipates full customer repayment and has ceased efforts to revive the platform due to a lack of buyers. The FTT token surged 11% post-announcement before dumping hard with an over 16% drop. Bankman-Fried was found guilty of misappropriating customer funds before the exchange's 2022 collapse, as reported by Reuters.  

SEC's Lawsuit Dismissal Attempt Against DEBT Box Questioned

The SEC sought to dismiss its lawsuit against DEBT Box, accused of defrauding investors of $50 million. Judge Shelby criticized the SEC's attempt, citing misleading representations. Meanwhile, Terraform Labs, facing an SEC fraud lawsuit, claimed bankruptcy protection to preserve value and resolve claims. Assets and liabilities stand between $100 million and $500 million.  

Whale Transactions Stir Solana's Market

Solana (SOL) whales have moved $82 million in two transactions, raising speculation. Despite a 24-hour 2.96% price dip, SOL has shown a 16.40% increase over the past week. Market analysts remain bullish, with a potential rally target at least $115. Whale activities and large transactions continue to influence SOL's market dynamics.  

Binance to Reduce Stake in Gopax Amid Compliance Issues

Binance intends to reduce its stake in South Korean exchange Gopax due to the latter's liquidity issues and compliance concerns following the FTX collapse. Binance acquired a 72.26% stake in Gopax in February 2023 to resolve its liquidity problems. The plan includes converting loans to equity and selling shares to ease debt and aid in Gopax's registration renewal.  

Sui's Rise in DeFi Rankings, Record Token Surge

Sui, a layer-1 blockchain, has rapidly ascended into the top 10 DeFi rankings, with a TVL exceeding $430 million. Its mainnet launched in May 2023, featuring a delegated proof-of-stake consensus. SUI, the native token, has surged 109% in January, reaching a record-high $1.65. Strategic integrations with Banxa and Mysten Labs demonstrate Sui's commitment to seamless and low-cost transactions.  

Token Unlocking in February 2024: Implications for Major Projects

In February 2024, nearly $1 billion worth of tokens will unlock from projects such as Optimism, Avalanche, The Sandbox, Aptos, and Sui. Avalanche has the highest unlock with 9.54 million AVAX tokens valued at $344.17 million. Aptos will unlock 24.84 million APT tokens worth $229.54 million, potentially affecting its price. The Sandbox will inject $95 million into circulation.  

Hong Kong Investigates Worldcoin Over Privacy Concerns

The Hong Kong Privacy Commissioner's Office is investigating Worldcoin over potential privacy breaches, prompting concerns about the collection and processing of sensitive personal data. Simultaneously, Worldcoin's utility token, WLD, has experienced a significant 8.8% decrease, currently valued at $2.35. The investigation's impact raises questions about the project's future and implications for investors.  

Filecoin Partners with Pyth for Enhanced Market Data Access

Filecoin integrated Pyth price feeds to enhance its decentralized storage network, enabling real-time market data accessibility for developers. This collaboration aims to advance decentralized finance opportunities, democratize storage access, and establish resilient markets within the Filecoin ecosystem. Pyth Network provides 400+ live market data feeds, securing over $2 billion in value.  

UK Police Seize Bitcoin in Chinese Investment Fraud Case

Police in the UK seized 61,000 BTC, valued at $1.78 billion from a Chinese investment fraud. Jian Wen is on trial for allegedly laundering bitcoin for her former employer, Yadi Zhang, who is accused of stealing $6.4 billion from 128,000 investors. Zhang converted the stolen funds into bitcoin and fled, while Wen denies the charges against her.  

Bitfinex Securities Launches in El Salvador

Bitfinex Securities launches in El Salvador after securing a license under the country’s Digital Assets Issuance Law. With strong anticipation for digital investment services following the debut of US spot Bitcoin ETFs, the platform plans to introduce various products, expand its reach in Central and South America, and engage both domestic and international issuers.  

Top Altcoin Gainers and Losers

Gainers:

Ronin RON (+4.40%) 

Sui SUI (+4.02%) 

SATS 1000SATS (+3.55%) 

Losers:

FTX Token FTT (-16.01%) 

Manta Network MANTA (-12.54%) 

NEAR Protocol NEAR (-7.82%)