Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | November 4 - November 10, 2023
Crypto Weekly Market Update
Table of Contents
Crypto Market Overview
- Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments
Crypto Market Updates
- BlackRock's Ethereum Trust: A New Institutional Milestone
- SEC's Bitcoin ETF Review: A Market Game Changer
- Hong Kong Opens Crypto ETFs to Retail Investors
- Binance Launches Web3 Wallet Amid SEC Scrutiny
Banking and Regulatory Updates
- Major Investments in Crypto Startups by SC Ventures and SBI
- Global Firms Embrace Crypto Expansion
- China Criminalizes Theft of Digital Collections
- Rise in UK Cryptocurrency Scams: Lloyds Bank Report
Crypto Exchanges and Platforms
- Poloniex Hack: Over $100 Million in Crypto Stolen
- Celsius Emerges from Bankruptcy with New Plans
- Elon Musk's xAI Unveils Grok: A New AI Chatbot
- "The Simpsons" Episode Boosts NFT Interest
- UV Light Incident at ApeFest: Legal Action Ensues
- OpenSea Valuation Slashed Amid Market Downturn
- Roblox CEO Discusses NFTs and Digital Object Portability
Crypto Weekly Recap: Price Actions, Market Trends, and Key Developments
- Weekly change: +7.31%
- On Sunday, Bitcoin broke through the $35,000 resistance level, peaking at over $36,000 in the evening (UTC) before retreating to around $35,000 by early Monday.
- Amidst ETF excitement, Bitcoin stabilized between $34,700 and $35,300. This coincided with Hong Kong's SFC considering retail access to spot crypto ETFs.
- Bitcoin's open interest exceeded $15 billion on Tuesday. Transaction fees hit a 5-month peak, with predictions of a 20% price drop not materializing.
- Bitcoin rose to $35,800 on Tuesday and hit a year-to-date high of $37,900 on Thursday, spurred by the SEC's potential approval of 12 spot Bitcoin ETFs.
- The crypto market's value increased by $50 billion overnight, with Bitcoin reaching an 18-month peak.
- Bitcoin's market capitalization overtook Tesla's, nearing $38,000, fueled by ETF-driven momentum.
- MicroStrategy's Bitcoin holdings gained $1.2 billion in value during the rally.
- Short-term Bitcoin holders gained $1.8 billion in profits within 48 hours on Thursday, with Bitcoin's value then stabilizing above $36,000.
- Matrixport predicted an imminent Bitcoin surge towards $45,000.
- Bitcoin ceded the spotlight to Ethereum by week's end, yet investor interest stayed strong, evidenced by CME surpassing Binance in Bitcoin futures open interest.
- Weekly change: +16.67%
- ETH significantly outperformed BTC this week.
- On Monday, Ethereum's transaction volume hit a six-month peak, settling transactions worth over $213 billion.
- Ethereum's price climbed past $1,900 on Sunday, buoyed by the broader market trend.
- CoinShares reported on Monday that crypto funds reached a $767 million peak over six weeks, with Ether recording its largest inflows since August 2022.
- A 'Smart Whale' withdrew approximately $32 million in Ethereum from Binance.
- The founder of LHV Bank reportedly owns $470 million in Ethereum but lost access due to a missing private key.
- Finder's Wednesday predictions indicated a downward revision in Ethereum's future value: $1,840 by 2023, $5,824 by 2025, and $14,411 by 2030.
- Ethereum's price fluctuated narrowly between $1,817 and $1,915 from Monday to Thursday morning.
- On Thursday afternoon, Ethereum hit a 7-month high, exceeding $2,100, following BlackRock iShares Ethereum Trust's registration in Delaware.
- Ethereum micro wallets reached 100,000, according to Santiment.
- Ethereum fees spiked to $100 briefly after BlackRock filed for an ETH ETF.
- Since Monday, the global Ethereum supply has decreased, with 5,800 ETH (about $11.8 million) permanently removed from circulation.
- SK Telecom launched a Web3 wallet in collaboration with Aptos and Atomrigs Lab.
- Arbitrum DAO approved a proposal for token staking and might use $3.9B from its treasury for this purpose.
- Ava Labs cut 12% of its workforce to reallocate resources, as reported by the CEO. Avalanche's C-Chain saw a decline in user activity and transactions in Q3, with a 27% drop in TVL.
- Coinbase discontinued support for Bitcoin SV, advising holders to withdraw to avoid potential liquidation.
- Cardano-based DEX MuesliSwap announced an upcoming refund site amid user concerns.
- Cardano partnered with Polkadot for multi-chain expansion.
- HashKey exchange in Hong Kong listed Chainlink for professional investors.
- Coinbase and Ether liquid staking tokens like Lido and RocketPool surged following BlackRock's ETH ETF news.
- Conflux multichain protocol ceased operations after two years.
- FTX sold $200 million in ETH and $30 million in SOL without significantly impacting their prices.
- Evmos discontinued Cosmos support, focusing on Ethereum-based transactions.
- Scroll became the third most active Ethereum Layer 2 by throughput, overtaking ZkSync Era, boosted by a Scroll Origins NFT promotion.
- Genesis sought court permission to reduce its 3AC claim from $1B to $33M.
- FTX aimed to sell Grayscale and Bitwise assets worth $744M, with its FTT Token jumping 90% after Gensler's comments.
- Crypto lender Hodlnaut faced liquidation, as revealed in a court filing.
- Blockchain game Illuvium is prepared for an Epic Games Store release.
- Taiwan detained key JPEX personnel amid fraud investigations.
- JPMorgan Coin introduced programmable payments, with FedEx as an early adopter.
- Kraken explored solutions for industry challenges, amidst layer-2 speculations.
- Monero's community wallet was emptied following an attack.
- Near Foundation and Polygon Labs teamed up for a ZK solution. NEAR CEO declined Wintermute's USN token swap offer, leading to a potential lawsuit.
- OneCoin's legal head admitted to money laundering and wire fraud.
- Polygon's MATIC token rose 21.15% in a week, with a 54% market cap increase in three weeks. Significant accumulation was noted among addresses holding 100,000 to 10 million MATIC.
- Polygon Labs launched a $85M grant program to attract developers.
- HSBC collaborated with Ripple's Metaco for security token custody, with Ripple potentially reducing a $770 million SEC fine.
- SafeMoon CEO's bail was delayed due to flight risk concerns.
- KuCoin and Gate exchanges announced to list BRC-20 memecoin Sats.
- Sui partnered with Space and Time to integrate zero-knowledge tools in Web3 games.
- Sushi introduced 'Smart Pools' to enhance LP efficiency.
- Tether's USDT supply hit a new high, exceeding 84 billion.
- The Graph prepared to launch new blockchain data services, including AI-assisted querying.
- Ton Network processed a record 104,715 transactions per second, with Toncoin hitting an 11-month high following Telegram's 'Giveaways'.
- USDC announced a 7% fee reduction for stablecoin transactions, with issuer Circle considering a 2024 IPO.
- WstETH joined Base after LayerZero's miss.
BlackRock's Ethereum Trust: A New Institutional Milestone
BlackRock's filing for an iShares Ethereum Trust marks a pivotal move in institutional crypto investment. Submitted on November 9, 2023, it follows their Bitcoin Trust and spot bitcoin ETF proposals. The market reacted positively, with Ethereum's price jumping 8% to over $2,040, showcasing strong investor confidence.
Ethereum has risen 60% this year, outperforming Bitcoin. The anticipation of a spot ether ETF boosted ether's liquid staking platforms and Coinbase shares. A significant Ethereum transaction saw a whale move 25,700 ETH to Binance. This development signifies growing institutional acceptance of Ethereum and cryptocurrencies at large.
SEC's Bitcoin ETF Review: A Market Game Changer
The SEC is reviewing 12 Bitcoin ETFs, including BlackRock and Grayscale's applications. Grayscale is negotiating with the SEC to convert its Bitcoin Trust into a spot ETF. Bloomberg analysts see a 90% chance of ETF approval by January 2024. Bitcoin's price surged over 20% in October, indicating market optimism. A spot Bitcoin ETF could attract $50-100 billion in five years.
ARK Invest plans digital asset ETFs focusing on Bitcoin and Ethereum futures. MicroStrategy reports significant Bitcoin profits. BlackRock filed for an Ether ETF. JPMorgan warns of potential market volatility. The SEC's decisions could significantly impact the crypto investment landscape.
Hong Kong Opens Crypto ETFs to Retail Investors
Hong Kong's Securities and Futures Commission (SFC) is revolutionizing its approach to cryptocurrency, now allowing retail investors to access spot crypto ETFs. Previously, only professional investors with portfolios over 8 million HKD were eligible. This change, effective from October, requires retail investors to pass a knowledge test and meet net worth criteria.
Crypto ETF assets, including Samsung Bitcoin Futures Active and CSOP Bitcoin Futures, have grown to $65 million. Banks like UBS Group AG and HSBC are offering crypto ETFs to wealthy clients. This policy shift could significantly influence global cryptocurrency regulation and market dynamics.
Binance Launches Web3 Wallet Amid SEC Scrutiny
Binance's new Web3 Wallet, integrated into its app, offers user control in DeFi, supporting diverse blockchain interactions and dApps. It features cross-chain swaps and enhanced security but risks access loss on password misplacement or app uninstallation. Trust Wallet's token TWT dropped 17% post-launch, despite supporting 30 blockchains and introducing Wallet as a Service (WaaS).
Binance faces SEC scrutiny over potential securities law violations with its token offerings and staking programs. Concurrently, Bitcoin's market cap outstripped Tesla, nearing $38,000, buoyed by expectations of an SEC-approved Bitcoin ETF, signaling a bullish trend in the crypto market.
Major Investments in Crypto Startups by SC Ventures and SBI
Standard Chartered's SC Ventures and SBI Holdings plan a $100 million investment in crypto startups, targeting areas like DeFi and the metaverse. SBI also eyes a separate $663 million fund for web3 and AI.
Concurrently, Lightspeed Faction launches a $285 million fund for early-stage blockchain projects, leveraging its team's extensive industry experience. These initiatives signal robust confidence in the blockchain sector's growth potential, reflecting a strategic commitment to nurturing emerging technologies in the crypto and blockchain landscape.
Global Firms Embrace Crypto Expansion
DZ Bank, Germany's third-largest, plans to offer crypto custody to institutional clients by 2024, responding to rising demand for digital assets. HSBC collaborates with Ripple's Metaco for a tokenized securities custody platform, launching in 2024, focusing on security tokens. Linekong Interactive invests $15 million in Bitcoin network projects, emphasizing asset issuance and NFTs.
Deutsche Börse aims to develop a digital securities registry and a trading platform for digital assets by 2026, targeting institutional investors. Additionally, they plan a regulated cryptocurrency exchange for 2024. Nomura's Laser Digital introduces an Ethereum fund for institutions, featuring a 5.5% yield staking facility.
China Criminalizes Theft of Digital Collections
China has recently announced that stealing digital collections, including non-fungible tokens (NFTs), is now considered a criminal offense, liable for theft sentencing. This decision aligns with the country's efforts to protect digital property and data. The government's statement categorizes digital collections as both data and virtual property, making them subject to property crime laws. Intrusion into systems housing these digital collections is also deemed a violation.
Despite China's 2021 ban on most crypto-related activities, the interest in NFTs remains, evidenced by recent developments like Alibaba's Xianyu marketplace lifting censorship on NFT-related keywords and China Daily's plans to create its own NFT platform. This move reflects China's evolving stance on digital assets and its commitment to regulating the digital economy.
Rise in UK Cryptocurrency Scams: Lloyds Bank Report
Lloyds Bank reports a 23% rise in UK cryptocurrency scams, heavily impacting young investors aged 25-34. Victims often make three payments before recognizing the scam, with average losses of $13,115. Concurrently, the UK's Financial Conduct Authority (FCA) issued 146 alerts under new crypto promotion regulations.
These rules aim to ensure fair and clear marketing of digital assets, reflecting the sector's evolving nature. Nearly 5 million UK adults held crypto as of August 2022, highlighting the need for such protective measures. Critics, however, worry about creating a misleading "halo effect" around regulated crypto investments.
Poloniex Hack: Over $100 Million in Crypto Stolen
Poloniex, a crypto exchange, experienced a significant hack, losing over $100 million. Initially thought to be $60 million, the loss was later updated to over $100 million, attributed to a private key compromise. The exchange disabled the affected wallet and is investigating.
Justin Sun, Poloniex's owner, promised full reimbursement to affected users and offered a 5% bounty for the return of the stolen funds. The hack's impact included a 20% price surge in Tron (TRX). Security reports indicated the stolen assets involved Ethereum, Tron, and Bitcoin, marking this as one of the largest hacks in centralized exchange history.
Celsius Emerges from Bankruptcy with New Plans
Celsius, a cryptocurrency lender, has emerged from bankruptcy following a court-approved plan, which includes distributing about $2 billion in Bitcoin and Ether to creditors and offering them equity in a new entity, NewCo. Managed by the Fahrenheit consortium, NewCo will expand mining operations and monetize Celsius' assets, subject to regulatory approvals.
This development comes after Celsius' bankruptcy in July 2022 and legal challenges involving its former CEO, Alex Mashinsky, who faces trial in 2024 for fraud charges. The plan's approval does not determine the securities status of Celsius' CEL tokens or its Earn Program.
Elon Musk's xAI Unveils Grok: A New AI Chatbot
Elon Musk's AI startup xAI unveiled Grok, a unique chatbot designed to tackle unconventional queries. Grok, inspired by "The Hitchhiker’s Guide to the Galaxy," boasts real-time world knowledge and a humorous edge. Despite Musk's AI apprehensions, xAI emphasizes developing misuse safeguards.
Grok's beta version, limited to select U.S. users, outperforms ChatGPT 3.5 in certain aspects but may produce inaccuracies. Grok's launch spurred over 400 cryptocurrencies, collectively exceeding $10 million in market cap. These tokens, quickly adopted by traders, include scams causing significant losses.
NFT Market Map
"The Simpsons" Episode Boosts NFT Interest
In a recent "The Simpsons" episode, the show humorously critiqued NFTs and crypto. The episode featured Bart Simpson becoming a living NFT and included references to the overvaluation of NFTs, with appearances by notable collections like Beeple and Bored Ape Yacht Club. This isn't the first time the show has touched on crypto themes. Following the episode, NFT collections inspired by "The Simpsons" saw a surge in interest.
The Springfield Punks collection, blending CryptoPunks aesthetics with "The Simpsons" elements, achieved nearly $2.5 million in sales in under 24 hours, becoming a top trend on OpenSea. Other collections, like "SimpsPunks" and "The Chimpsons Official," also gained prominence. Interestingly, while the episode satirized NFTs, it coincided with signs of recovery in the NFT market.
UV Light Incident at ApeFest: Legal Action Ensues
At Hong Kong's ApeFest, UV lights caused eye and skin issues for attendees, confirmed by Yuga Labs and Jack Morton Worldwide. Over 15 people reported vision loss and skin irritation. UV-A lights, prevalent in UV radiation on Earth, were implicated. Asif Kamal, Artfi CEO, experienced an eye infection and facial burns, leading to legal action against Yuga Labs.
Less than 1% of 2,250 attendees were affected, but Yuga urged medical attention for symptoms. Kamal's case highlights the need for stringent safety measures at public events, emphasizing human well-being in community-centric gatherings.
OpenSea Valuation Slashed Amid Market Downturn
OpenSea, a leading NFT marketplace, faced a drastic 90% valuation cut by investor Coatue Management, plummeting from a $13.3 billion valuation in its Series C round in 2022. This comes amidst a broader market downturn, with OpenSea also announcing a 50% staff reduction. NFT sales have significantly slowed, with weekly sales dropping from about 176,000 to 23,000 and weekly sales value declining from $118 million to $62 million.
Meanwhile, Blur, a rival NFT marketplace, saw its token value surge by 33% following OpenSea's staff cuts. Blur's token had already risen 80% over three weeks, further boosted by OpenSea's downsizing. Blur's success is attributed to its competitive business model, offering lower royalty fees and attractive incentives, challenging OpenSea's higher fee structure.
Roblox CEO Discusses NFTs and Digital Object Portability
Roblox CEO David Baszucki envisions a future where nonfungible tokens (NFTs) and digital objects can move seamlessly across multiple platforms. In a recent interview, he discussed the potential for top brands and celebrities, like Elton John, to create and sell unique digital items on Roblox, which could then be transferred off-platform as NFTs. This vision aligns with the growing interest in NFTs, as evidenced by a reported spike in NFT sales volumes.
For instance, the Bored Ape Yacht Club (BAYC) collection saw the highest trading volume in the last 30 days, amounting to 35,226 ETH (approximately $66.7 million). Additionally, there was a 12% increase in NFT traders during this period. Despite a loss in Q3, Roblox reported a 20% year-over-year growth in booking estimates, driven by higher in-game spending and an increase in total users.
This article has been refined and enhanced by ChatGPT.