Quick Look at Crypto and Global Markets 02.01.2024
Below, you can find a 1-minute financial summary covering daily significant news related to cryptocurrency markets, global market developments, and domestic markets.
Cryptocurrencies
- Bitcoin exchange reserves have reached their lowest point in recent weeks, indicating a growing trend among investors to adopt a long-term strategy for holding Bitcoin. Consequently, the decline in the value of Bitcoin exchange reserves is apparent.
- Despite his previous negative stance on cryptocurrencies, JPMorgan CEO Jamie Dimon is facing criticism for his involvement in a Bitcoin ETF.
- The crypto community expressed discontent as the US Department of Justice opted not to initiate a fresh lawsuit against SBF. Prosecutors, in a submitted letter, emphasized the urgency of resolving the matter promptly.
- On December 31, Orbit Chain, a cross-chain bridge, acknowledged an external breach into their ecosystem. Reported losses, totaling approximately $81.68 million, encompassed various cryptocurrencies including USDT, USDC, Ether, WBTC, and DAI.
- A group identified as “Pink Drainer” managed to pilfer $4.4 million worth of Chainlink (LINKUSD) from a lone victim, deceiving them into approving a “Raise Confirmation.”
- According to a 2023 report by the blockchain security platform Scam Sniffer, over 324,000 cryptocurrency users encountered phishing scams during the year, resulting in losses of around $295 million.
- This morning, Bitcoin surpassed the $45,000 mark in anticipation of the potential approval of spot Bitcoin ETFs. The surge followed the SEC’s communication to applicants, indicating a possible decision on spot Bitcoin ETF applications as soon as Tuesday or Wednesday before January 10.
- In January, over 20 cryptocurrencies are set to be unlocked, with the most significant release occurring on January 12 in Aptos, totaling $234 million.
- Bitwise made amendments to its S-1 filing ahead of the SEC’s December 29 deadline for the spot Bitcoin ETF application, revealing a substantial $200 million in seed financing. This investment surpasses the seed financing disclosed by BlackRock earlier by a factor of 20.
- As part of the Culture Catalyst program, the Avalanche Association revealed plans to allocate investments towards a meme coin collection.
FED
- While the Federal Reserve is expected to maintain the policy rate unchanged in its initial meeting of the year, money market pricing indicates an 85 percent likelihood of the first interest rate cut occurring in March.
Global Markets
- The risk appetite is being subdued in global markets due to reports of Iran dispatching warships to the region in response to the US Navy sinking Houthis’ boats in the Red Sea.
- Gold, concluding Friday with a 0.2 percent decline at $2,063 per ounce, is presently being traded at $2,070, reflecting a 0.3 percent increase from its previous closing.
- News surrounding the standoff between the USA and Iran in the Red Sea is bolstering upward momentum in oil prices. Currently, Brent oil is being traded at $78.2 per barrel, marking a 1.8 percent increase.
- The first day of the new year saw a varied trajectory in USA index futures contracts.
- On the European front, markets maintained a narrow range last week amid the holiday, with investor attention now shifting to upcoming inflation data set to be disclosed in Germany and the Eurozone this week.
- In Asia, a prevailing negative trend was notable, with Chinese President Xi Jinping’s speech emphasizing economic challenges contributing to this downward trajectory.
- Furthermore, with yesterday’s earthquakes in Japan making headlines globally, Japanese markets remained inactive today in observance of a holiday.
