Coin360 Daily Dispatch | Crypto Market Updates & Highlights | December 27, 2023

Bitcoin's Brief Dip and Rebound

Bitcoin briefly dipped to $42,000 but rebounded, approaching $43,000 again. Significant movements in Bitcoin and other cryptocurrencies, like a $191.88 million transfer to Coinbase, hint at potential liquidation by major holders. The Korean Bitcoin market shows a high premium, suggesting strong retail investor activity but also serving as a potential indicator of price tops. 

Smart money index reached a record high of 13,711, indicating strong bullish sentiment among institutional investors ahead of SEC's decision on Bitcoin ETF. Market participants anticipate a potential "sell the news" scenario after the ETF launch, with expectations of record inflows driving Bitcoin's price up by nearly 60% this quarter. The U.S. national debt reaching a new high of $33.9 trillion could have indirect implications for the crypto market, reflecting broader economic challenges. 

MicroStrategy's Massive Bitcoin Purchase

MicroStrategy has bolstered its Bitcoin holdings, purchasing 14,620 BTC for $615.7 million between November and December 2023. This acquisition, at an average of $42,110 per Bitcoin, increases their total to 189,150 BTC, valued at approximately $5.9 billion. This strategic move, amidst potential Bitcoin ETF approval, reflects their strong belief in Bitcoin's future, now holding nearly 1% of its total supply.

SEI's Record High Amid Bullish Trends

The SEI price hit a new all-time high, surpassing $0.52 amid a swift rally since November. The daily RSI and wave count support the bullish trend. However, failing to close above the $0.58 resistance area may trigger a sharp drop. The RSI indicates a bullish momentum, despite a slight price decrease.  

CZ's Net Worth Soars Despite Legal Woes

In 2023, despite legal challenges, former Binance CEO CZ's net worth surged by $25 billion due to Bitcoin's rise. However, it remains below previous highs. Binance paid a $4.3 billion fine, and CZ faces potential prison time but could serve a reduced sentence. Other crypto figures also saw wealth growth, like Coinbase's CEO and Winklevoss twins, while FTX's imprisoned ex-CEO's net worth plummeted. BNB has risen to over $310 and regained the fourth position from Solana.  

2023: A Milestone Year for Crypto ETFs

In 2023, the crypto ETF landscape saw notable developments, including the launch of the first leveraged bitcoin futures ETF and a surge in inflows to funds trading in blockchain and crypto-aligned stocks. Optimism prevails for the approval of spot bitcoin ETFs in 2024, with potential forecasts indicating a significant influx into these ETFs.  

Mt. Gox's Overpayment Glitch

Mt. Gox, once a major Bitcoin exchange, mistakenly issued double payments to customers affected by its 2014 hack. Nearly ten years later, as compensation began, a system glitch led to these overpayments via bank and PayPal. The exchange has requested the return of these funds, citing legal obligations.

Thunder Terminal Hack Exposes Security Flaws

Thunder Terminal suffered a hack, losing 86.5 ETH and 439 SOL, affecting 114 wallets. Despite assurances of no private key compromises and promises of full refunds and benefits, the hacker claimed to have user data, demanding a 50 ETH ransom. The breach was linked to leaked session tokens and a MongoDB URL exploit. 

The incident drew attention from blockchain investigator ZachXBT, who expressed frustration with the crypto community's demands, leading to his temporary withdrawal from public engagement.

Shimmer Bridge Enhances Blockchain Interoperability

The Shimmer bridge, leveraging LayerZero's technology, facilitates value transfer between various blockchains such as Ethereum, Binance Smart Chain, Polygon, and more. LayerZero connects over 50 blockchains, allowing interoperability for developers. ShimmerEVM broadens its reach with cross-chain messaging, enabling asset exchange and interaction across LayerZero-supported blockchains.  

Taproot Wizards' Script Challenges Bitcoin Ordinals

Taproot Wizards launches a script to reject Bitcoin Ordinals inscriptions. Created by Rijndael, the script allows nodes to reject Ordinals transactions, causing a potential chain split. However, experts doubt its impact, considering the valid nature of Ordinals. The debate resurfaced after OCEAN mining firm rejected Ordinals transactions due to potential drawbacks and benefits.  

Nigeria Reverses Crypto Ban for Banks

The Central Bank of Nigeria lifted the ban on local banks and financial institutions serving crypto firms, following a reversal of a 2021 directive. This move is expected to spur the use of cryptocurrencies, with the pan-African exchange Yellow Card planning to seek licensing in the country. The new regulatory framework aims to promote a surge in user adoption and engagement.  

Hong Kong's New Stablecoin Regulations

Hong Kong plans to regulate fiat-referenced stablecoins (FRS) and requires issuers to obtain a local license. The criteria include fully backing stablecoins with reserves equal to their value, segregation and safekeeping of assets, and full disclosure. The consultation period for the legislative proposal ends on Feb. 29, 2024, aiming to manage the risks associated with stablecoin development.  

South Korea's Crypto Disclosure Law for Officials

South Korea will require about 5,800 public officials to disclose their cryptocurrency holdings next year. This follows the passage of legislation in May, making crypto assets part of annual asset disclosure for high-ranking government officials. Major domestic crypto exchanges plan to develop a separate information system for property registration by June.  

Solana's DEXs See Liquidity Surge

Solana's DEXs experienced a tenfold liquidity increase since October, with December volumes tripling the previous high. This surge, partly fueled by significant airdrops from Pyth and Jito, has narrowed the gap with Ethereum's DeFi. Solana's DEX volume rose 26% to $5.8 billion, while liquid staking saw a decline.

Top Altcoin Gainers and Losers

Gainers:

Bitcoin SV BSV (+37.30%)

Optimism OP (+26.96%)

Astar ASTR (+24.54%)

Losers:

Bonk BONK (-11.81%)

Fantom FTM (-5.98%)

Celestia TIA (-5.58%)