Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 2, 2024

Bitcoin Nears $46K Amid ETF Hopes

Bitcoin's recent surge past $45,900, a peak not seen in 21 months, is stirring excitement across the crypto landscape. This bullish momentum is driven by anticipation of a U.S. spot Bitcoin ETF approval, with major firms like BlackRock and Fidelity finalizing their ETF offerings. Additionally, the crypto market is closely watching key U.S. economic reports, anticipating potential shifts in the Federal Reserve's policies. 

Amidst this, Matrixport predicts Bitcoin could hit $50,000 soon, citing institutional interest and the upcoming Bitcoin halving as catalysts. The renewed premiums in Bitcoin CME futures and Coinbase also indicate a spike in institutional interest. 

Grayscale's ETF Move Sparks SEC Speculation

Grayscale's latest Bitcoin ETF amendment with the SEC omits details of authorized participants, a key element usually required for ETFs. This move has raised questions, especially since other firms like Fidelity and WisdomTree have listed their participants. The SEC's decision on Bitcoin ETFs is eagerly awaited, with Polymarket traders betting on an 89% chance of approval by January 15. However, there's speculation that the SEC may delay its decision due to a heavy workload. 

Bitcoin's price has surged in anticipation, but some journalists, like Eleanor Terrett, doubt immediate approval, citing the SEC's unpredictable nature. Adding to this, K33 Research suggests that even if approvals occur, it might lead to a 'sell-the-news' event, with a 75% likelihood of prices dropping as traders take profits. This scenario is based on the current market's high exposure and the significant premiums on Bitcoin futures, indicating expectations of approval. The overall sentiment is a mix of optimism and caution, with the market bracing for any outcome.

Orbit Chain Breach: $81M in Crypto Stolen

Orbit Chain, a cross-chain bridge, confirmed a breach on December 31, 2023, leading to a loss of about $81.68 million in various cryptocurrencies. This incident contributed to December's total crypto theft nearing $100 million. The stolen assets, including Tether, USD Coin, Ether, Wrapped Bitcoin, and Dai, remain unmoved in the hacker's addresses. 

Orbit Chain is working with law enforcement and cybersecurity firm Theori to analyze the breach and has requested global exchanges to freeze the stolen assets. Users are advised to beware of scam repayment offers circulating on social media. The hack is part of a larger trend of significant losses to Web3 hackers and scammers in 2023, totaling between $1.51 billion and $2 billion.

Arbitrum and Optimism Tokens Hit New Highs

Arbitrum and Optimism tokens have surged in price, nearing all-time highs. Arbitrum hit $1.83, a 60% rise in a month, while Optimism reached $4.10 before currently trading at $3.87. Both tokens are crucial for governing their respective Layer 2 solutions. Transaction volumes for both networks have increased, with Arbitrum's TVL at $2.57 billion. In the meantime, Ethereum has returned to $2,400 for a short while before slightly dropping below this level at the time of writing.

Nansen's 2024 Crypto Market Predictions

Nansen analysts predict a positive outlook for cryptocurrency prices in 2024. They outline three main scenarios: a decline in inflation leading to a potential rise in Bitcoin, a re-acceleration of inflation, and the possibility of a recession. They also anticipate increasing interest in decentralized exchanges (DEXs), expecting them to become more dominant in 2024.

Ripple's XRP Sees Large Transfer to Bitstamp

An anonymous wallet owner transferred 27.7 million XRP worth $17.2 million to Bitstamp, potentially initiated by Ripple Labs. Over the past 24 hours, XRP's price rose by 4.81%. Ripple released 1 billion XRP from escrow, with 700-800 million XRP returned and locked until the next month, totaling over $600 million in fiat value.  

Sei Network's Rapid Ecosystem Growth

The Sei Network, a trading-focused blockchain launched in August 2023, has gained attention due to significant growth in its ecosystem. The SEI token and associated projects such as SEIYAN and SEILOR have experienced substantial increases in value and open interest. The network's forthcoming update aims to enhance speed and features for project developers.  

Coinbase and MicroStrategy Stocks Surge on Bitcoin ETF Anticipation

Bitcoin approaches $46,000, prompting a surge in Coinbase and MicroStrategy stocks. Coinbase's pre-market price spiked 6.4% to $184.99, experiencing a month-over-month increase of 36%. MicroStrategy shares surged 9.3% to $690.30, with a 25% gain over the past month. Anticipation of U.S. spot Bitcoin ETF approval is driving the market. MicroStrategy purchased 14,620 Bitcoins, totaling 189,150.  

Nest Wallet CEO Falls Victim to Phishing Scam

Nest Wallet CEO Bill Lou lost $125,000 to a fake LFG token phishing attack while attempting to claim an airdrop. The attack targeted Ethereum users with high transaction fees, aiming to migrate them to Solana. The scam resulted in several victims losing funds, prompting warnings about malicious drainer groups targeting Solana users.  

Stake Secures Naming Rights for Sauber's F1 Team

Stake, a crypto betting firm, secured naming rights to Sauber's F1 Team for 2024-2025. This marks a growing trend of cryptocurrency businesses entering Formula 1. The team will be rebranded as Stake F1 Team Kick Sauber, with Canadian rapper Drake participating in the unveiling. Stake's partnership expands its presence in the global fan base.  

Top Altcoin Gainers and Losers

Gainers:

Astar ASTR (+21.78%)

Sei SEI (+14.15%)

Conflux CFX (+11.59%)

Losers:

Helium HNT (-6.55%)

Bitcoin SV BSV (-6.50%)

Filecoin FIL (-4.34%)