Coin360 Daily Dispatch | Crypto Market Updates & Highlights | February 5, 2024

Bitcoin Dynamics: Range, Volume, and Economic Impact

Bitcoin remains in a tight $41,000-$44,000 range with modest January gains of 0.6%. Whale wallets peak, hinting at large holder moves. January 2024 saw the highest monthly Bitcoin volume since September 2022, indicating increased transactions. Analysts anticipate significant price moves post-April's Bitcoin halving. China's economic turmoil impacts 30% stock suspensions. 

Meanwhile, DXY climbs above 104 due to robust US jobs data. Speculation arises for a Federal Reserve rate cut by May. The upcoming release of more than 100 S&P 500 companies' earnings reports and varying expert opinions could influence Bitcoin's consolidation or correction patterns, with resistance at $48,000-$50,000 and a potential correction to $36,000-$38,000. 

Ethereum: Wallet Reactivation and Whale Activities

An Ethereum wallet inactive for over eight years transferred 100 ETH, sparking industry discussions. Reactivation of dormant wallets, including a 492 ETH movement, has drawn attention. Historic whale activities have led to market fluctuations in the past, prompting caution and vigilance. Ethereum's resilience suggests potential short-term volatility with a robust long-term trajectory.  

Crypto Inflows: Global Trends and US Leadership

Last week, crypto investment product inflows surged to $708 million globally, with Bitcoin accounting for 99% of total inflows. The US leads in inflows due to new spot Bitcoin ETFs, with significant contributions totaling $721 million. Notable inflows were also seen in Switzerland, Australia, France, Brazil, and Germany, while Canada reported outflows of $31 million.  

Nayib Bukele's Victory and Bitcoin's Future in El Salvador

Nayib Bukele, the pro-bitcoin president of El Salvador, declared victory in the 2024 presidential election with an estimated 85% of the votes and a majority in the Assembly. Bukele plans to maintain bitcoin as legal tender if re-elected, following El Salvador's adoption of bitcoin in 2021. The country holds a $131 million bitcoin portfolio with a $3.6 million profit.  

Hong Kong's Crypto Licensing Deadline Approaches

The Securities and Futures Commission in Hong Kong has set a deadline of Feb. 29 for crypto trading platforms to submit license applications or face closure by May 31. Investors are advised to trade only on licensed platforms and check the regulator’s lists for compliant platforms. Hong Kong has issued licenses to HashKey and OSL, with 14 other firms under review.  

Extradition and Legal Woes for Terraform Labs Executives

Former Terraform Labs CFO Han Chang-joon has been extradited to South Korea from Montenegro. Charged with falsified travel documents, Han and Terra co-founder Do Kwon were sentenced to four months in prison in Montenegro. Both the U.S. and South Korea seek Kwon's extradition to face criminal charges related to the collapse of Terraform Labs in May 2022.  

GoDaddy and ENS Collaboration for Web3 Domains

GoDaddy and ENS partnered to allow free pairing of .eth domains with traditional DNS domains. This benefits Web3 users by eliminating high gas fees. ENS deployed new smart contracts for the resolution process, promoting self-sovereignty. ENS developers disputed Unstoppable Domains' patent claims, asserting their own innovations in the domain naming system.  

Gitcoin Refocuses on Ethereum and Tech Development

Gitcoin restructures to focus on Ethereum grants, shifting from public goods to tech-centric approach. Two business units formed to coordinate product work and manage community and governance. DAO moving towards a "Labs" structure, granting software teams greater leadership. Aim to prioritize grants to strengthen association with technology development.  

FTX's Planned Sale of Anthropic Stake

FTX plans to sell its $1.4 billion stake in Anthropic, a rival to OpenAI. A hearing is set for Feb. 22. The sale aims to help FTX monetize its interest, benefiting stakeholders. Attempts to reboot the exchange failed, but FTX still has valuable data to monetize. Amazon also expressed interest with a potential $4 billion investment in Anthropic.  

DYdX Focuses on Permissionless Markets and Upgrades

DYdX has revealed its 2024 roadmap, focusing on Permissionless Markets, core trade execution upgrades, and enhanced onboarding and user experience. The introduction of Permissionless Markets aims to streamline market creation and trading processes, while core trading upgrades include improvements in order execution and social trading features. The platform also plans to enhance onboarding by integrating with popular centralized exchanges.  

Solana's Chapter 2 Preorder Success

Solana's successor to Saga, Chapter 2, amassed 60,000 preorders in under three weeks, set to roll out in 2025 at a cost of $450. The original Saga was priced at $1,000 but reduced to $599 before it sold out in Dec. 2023. Preordering Chapter 2 gives users the chance to earn rewards through referrals and a non-transferrable Element NFT.  

Controversy Over Ethereum WIF Token Launch

Several wallets, labeled as "insiders," acquired 24 million Ethereum WIF tokens for $3,000 in ether just as the tokens were issued. The price soared but then plummeted by over 80%. The creator of the original meme distanced themselves from the WIF team, creating high demand and $7.7 million in trading volumes.   

XRP's Clawback Feature: Approval and Concerns

The XRP community has shown overwhelming support for the Clawback feature with 94% approval. It allows issuers to recuperate tokens from specific accounts, aiding in regulatory compliance and risk management. However, concerns regarding user autonomy and the potential for misuse have sparked criticism, despite nearly unanimous validator approval. 

Rising Phishing Attacks Target Cryptocurrency Holders

Several high-profile phishing attacks have recently targeted cryptocurrency holders, resulting in substantial losses. A stETH holder lost 102.37 stETH, equivalent to $236,000. Additionally, in a separate incident, a Chainlink whale fell victim to a phishing link, losing $4.42 million. Overall, such scams have reportedly led to more than $1 billion in crypto theft since 2021.  

Blockchain Security Enhancements and Challenges

In 2023, blockchain security improved significantly, with crypto losses declining to $1.9 billion. Attack numbers increased by 14%, with BNB Chain targeted the most. The US led in hacks. Recovery of stolen assets was around 20%. The report emphasizes the need for extensive audits, real-time monitoring, and proactive security culture for future defense.   

South Korea's Crypto Regulation & Spot Bitcoin ETFs' Trading Volume

South Korea is developing a crypto regulation framework by July 2024. The Head of FSS will meet U.S. SEC Chair to discuss Bitcoin spot ETFs. BlackRock's iShares and Fidelity's ETFs saw significant inflows in January, with a combined total of approximately $4.8 billion, ranking among the top 10 ETF inflows across all categories. The cumulative trading volume of spot Bitcoin ETFs exceeded $30 billion. Genesis seeks court approval to liquidate Grayscale shares valued at nearly $1.6 billion to maximize returns during bankruptcy proceedings.

Hacker Selling Access to Law Enforcement Data on Crypto Platforms

A hacker is selling law enforcement access to issue emergency data requests (EDRs) on platforms like LinkedIn, Discord, Tinder, Binance, Coinbase, and Chainlink. Binance refuted leaked internal passwords and code on GitHub, denying user data leaks. However, Hudson Rock identified over 50 compromised Google law enforcement system credentials. The crypto community remains skeptical, leading to a negative impact on Binance's sentiment and user confidence in BNB token.  

Top Altcoin Gainers and Losers

Gainers:

Chainlink LINK (+5.20%) 

Frax Share FXS (+4.59%) 

Sui SUI (+3.62%) 

Losers:

Ronin RON (-10.38%) 

Render Token RNDR (-8.88%) 

Oasis Network ROSE (-7.12%)