Coin360 Daily Dispatch | Crypto Market Updates & Highlights | January 20, 2024

Bitcoin's Volatile Swing, Whales Signal Confidence

Bitcoin dropped to a new monthly low below $40,500, then rebounded to $42,000 before settling down at above $41,000 hours later. Bitcoin faces challenges with DXY strength and GBTC outflows causing price drops. Grayscale's transfer of 54,343 BTC to Coinbase and increased miner selling add downward pressure. 

However, a 15-month high in Bitcoin whale addresses suggests growing investor confidence and potential market recovery. Whales are also active in Ethereum and Chainlink, indicating interest in broader market revival. Stablecoin inflows exceed $4 billion, hinting at future capital movement back into volatile assets like Bitcoin.

Fidelity's FBTC ETF Surpasses $1 Billion in Days

Fidelity's FBTC ETF joined BlackRock's IBIT, surpassing $1 billion in inflows within five days. Other ETFs like ARKB and BTCO also performed well, but the market saw significant outflows. Conversely, Grayscale's GBTC ETF experienced over $2 billion in outflows, raising concerns about Bitcoin's selling pressure, despite overall strong inflows in rival ETFs like BlackRock and Fidelity.

Celsius and Alameda Hint at Market Dumps with Crypto Moves

Celsius Network and Alameda Research, linked to the defunct FTX, are moving significant crypto assets to exchanges, hinting at possible market dumps. Celsius transferred 34.08 million MATIC to Binance, while Alameda sent 135 WBTC, 207 WBTC, and 1150 ETH to Wintermute. These moves are part of their bankruptcy liquidation efforts. 

Concurrently, ex-FTX customers oppose the exchange's bankruptcy plan, arguing that the proposed USD repayments based on November 2022 values are unfair given the market's recovery, with a court decision pending.

CFTC Targets Debiex for Alleged Romance Scams

The CFTC has charged Debiex with romance scams, alleging a $2.3M misappropriation from five victims. The exchange's staff allegedly built romantic relationships to lure customers. Beware of Valentine’s Day scams and caution when using romantic connections for crypto. The rising method of targeted approval phishing is a new tactic used by romance scammers.  

1inch DAO Retains Swiss Firm for Legal Protection

The 1inch DAO engaged Swiss firm Storm Partners for legal representation, paying a $50,000 retainer fee. This aims to protect members from personal liability and defend the DAO's rights. Storm Partners will provide legal advice, with 200 hours expected for the retainer, and will deliver quarterly activity reports. This move is seen as significant for decentralized organization recognition.  

BlackRock Avoids XRP ETF, Spotlights Bitcoin and Ether

BlackRock, the world's largest asset manager, reportedly has no plans to launch a spot XRP ETF, unlike its move with Bitcoin and Ether. XRP is achieving milestones, with over 5 million wallets and a surge in transactions. Despite ongoing legal battles, analysts suggest its value could potentially soar to $27 per token.  

Frax Launches v3 with Trustless Frax Bonds

Frax completes v3 with Frax Bonds launch, offering trustless conversion to FRAX at maturity. Initial maturities are in 2024 and 2026, with $1.1M+ bids placed. FXBs aim to mirror U.S. Treasury rates and are usable in DeFi. Frax also allocated $20M to U.S. Treasuries with Centrifuge. Market cap stands at $653M.  

Top Altcoin Gainers and Losers

Gainers:

Akash Network AKT (+9.44%) 

Chiliz CHZ (+5.09%) 

Helium HNT (+4.13%) 

Losers:

Sei SEI (-7.24%) 

Lido DAO Token LDO (-7.18%) 

Blur BLUR (-6.28%)