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South Korean Regulators Turn up Heat on ‘Gangnam Style’ PSY’s NFT Concert Ticket Sales
The singer of “Gangnam Style,” PSY, could be set for an NFTclash with regulators in his native South Korea.
Per Biz World, the singer’s entertainment agency P Nation launched an NFT-powered pre-sale project for PSY’s concert tour in 2023.
No NFT Joy for ‘Gangnam Style’ PSY?
In October 2022, P Nation said it was launching a fan community called soPSYety. The agency said that the project was backed by NFTs, including a range named PSYger.
P Nation announced that for PSY’s Summer Swag and All Night Stand concerts, “opportunities to buy tickets in advance will be given to those who own PSYger NFTs.”
However, this policy may have landed the star and his firm in trouble with the South Korean Fair Trade Commission (FTC).
The FTC is reportedly on the warpath, and could “cancel” a much-awaited Major League Baseball showdown in Seoul next month.
In July 2023, the MLB unveiled plans for the Los Angeles Dodgers and San Diego Padres to open the 2024 regular season with two games in Seoul. The games are slated for March 20 and 21.
However, the FTC is concerned that the games’ main partner, the e-commerce giant Coupang’s Coupang Wow arm, is offering exclusive ticket access to its paid members.
The FTC, the media outlet reported, is considering investigating the MLB games and PSY’s NFT ticket sales, for possible violations of the Platform Competition Act.
The media outlet added that many critics have hit out at alleged “reverse discrimination.” They say such practices “undermine consumer welfare.”
Some 10,000 people have bought tickets to the MLB games via Coupang Wow. One game sold out in just eight minutes.
K-pop NFT Projects in Peril?
The FTC’s verdict in the PSY case could have serious repercussions for other K-pop ventures.
Many of K-pop’s biggest players have developed extensive NFT, web3, and crypto plans. And many of these involve using NFTs and coins to allow fans to access “exclusive” rewards.
In many cases, these plans have involved early access ticket sales and priority slots for meet-and-greet events with fans.
Known globally for hits such as “Daddy,” “Gentleman,” and “Gangnam Style,” PSY debuted in South Korea in 1999.
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Bitcoin ETFs are wrapped in ‘thin layer’ of indirect regulations — CFTC chair
The chair of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, believes there is a risk the recent approval of spot Bitcoin exchange-traded funds (ETFs) will be misinterpreted as firm regulations in place for Bitcoin and other cryptocurrencies in general.
In a keynote speech on Jan. 26, Behnam clarified there is a potential for retail and institutional investors to misunderstand the legal ruling for spot Bitcoin ETFs following the United States Securities and Exchange Commission’s (SEC) decision to approve 11 applications on Jan. 10.
While the approval now allows investors to expose themselves to Bitcoin without directly holding the asset itself, supervised by an SEC-regulated stock exchange, he argued there is no regulatory oversight for the cash market of digital assets, such as a crypto exchange.
“There remains nothing firmly in place to address the opaque and inconsistent practices in the cash markets for digital assets.”
Furthermore, Behnam explains that this has repercussions for the transparency of Bitcoin ETFs, since asset management firms acquire the underlying assets for the ETF from the cash market.
He raised concerns regarding trade settlement, conflicts of interest, data reporting, cybersecurity, customer protections, transparency and general market integrity.
“The ETPs have taken a speculative and volatile asset, wrapped it in a thin layer of indirect regulation, and packaged it as a shiny new product,” Behnam stated.
The enforcement of crypto regulations has been a prominent topic of discussion within the U.S. government in recent times, prompted by the demand from the crypto industry.
In September 2023 reported that the CFTC Commissioner Caroline Pham advocated for a limited pilot program to address crypto regulation.
Pham warned that the U.S. may soon need to “play catch-up” to crypto-friendly jurisdictions. She suggested that the program would be similar to regulatory sandboxes previously introduced at the state level.
However, many in the crypto industry anticipate that there could be increased regulatory clarity following the U.S. presidential election in November.
A recent survey on Jan. 2 by the Crypto Council for Innovation indicated that most crypto-focused individuals stated that a candidate’s position on digital assets would be somewhat, very or extremely important to their vote.
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3 reasons why Bitcoin hitting $38.5K marked the 'ETF dip'
GBTC: Light at the end of the tunnel?
The topic of the moment when it comes to BTC price trends is the United States’ first spot Bitcoin exchange-traded funds (ETFs).
While seeing billions of dollars in inflows since their Jan. 11 launch, the ETFs have so far presided over 20% downside for BTC/USD.
Market participants have tied the phenomenon to one ETF in particular: the Grayscale Bitcoin Trust (GBTC). Its conversion to an ETF has allowed investors “trapped” for years to exit — and while they might possibly invest in another spot Bitcoin product, regulations require at least a one-month cooling-off period.
Vast tranches of BTC have been sent by Grayscale to custodian Coinbase, but critics argue that this has little to do with the downward pressure that Bitcoin has been seeing since.
Rather, sales by defunct exchange FTX, as well as derivatives liquidations, may be to blame.
The former is finite and may have already concluded — and with GBTC outflows themselves decreasing day by day, this week’s low on BTC/USD may remain in place.
NVT mimics 2022 bear market floor
A classic Bitcoin on-chain metric delivered a surprise as BTC price fell toward $38,000.
The Advanced Network Value to Transaction (NVT) Signal currently shows that the value of recent transactions is correspondingly low when taken as a portion of the overall Bitcoin market cap.
NVT Signal seeks to compare the total value of transactions over a 90-day lookback period to the Bitcoin market cap at a given time.
Advanced NVT adds standard deviation bands, helping to pinpoint when BTC is relatively overbought or oversold.
The latest drop has fueled a retreat to the lowest standard deviation band, suggesting that $38,500 is an unnaturally low price point.
As noted by Philip Swift, creator of on-chain statistics resource Look Into Bitcoin, the NVT comedown is Bitcoin’s first since the pit of the 2022 bear market.
“Interesting to see that Advanced NVT has dropped into the green oversold bands for the first time in this bull market,” he wrote in part of a dedicated X post.
Bitcoin hodlers give "capitulation signs"
When it comes to capitulation events, this week’s lows tested the conviction of both speculators and seasoned hodlers.
On-chain data proves it: even long-term holders (LTHs), defined as entities hodling for 155 days or more, sent coins to exchanges at a loss.
This constitutes something of a follow-up move to that seen as BTC/USD retreated from its two-year highs of $49,000 immediately after the ETF launch. Then, it was short-term holders (STHs) at the forefront of selling, likewise with much BTC moved for less than it was acquired for.
Commenting on the scale of moves, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, struck a cautious tone. LTHs, he reasoned, might be on a cliff edge, with a more intense round of capitulation still possible.
“This situation ominously mirrors the pre-Luna collapse capitulation witnessed in May 2022. Back then, a nearly identical amount was sent to exchanges at a loss, followed by a more severe loss of over $600 million just a week later, right before Bitcoin’s value shockingly plummeted below $20,000,” he suggested in a research post.
“The repetition of such losses could point towards increasing evidence of capitulation among Bitcoin’s long-term stakeholders.”
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South Korean ‘Crypto Drug Dealer’ Jailed for 7 Years
A South Korean court has sent a drug dealer who sold narcotics to crypto-paying “customers” to jail for seven years.
Per the news agency Yonhap, the Criminal Division of the Busan District Court also ordered the unnamed individual – referred to by the media as “A” – to pay a fine of over $9,000.
The court further ordered A to attend a 40-hour narcotics treatment and rehabilitation program.
A denied all charges of selling drugs, but admitted to taking narcotics including ketamine.
Prosecutors said A “distributed drugs” using “dead drop” methods. The court heard that A regularly hid bags of narcotics “in water meters and public flower beds.”
The court heard that A asked to be “paid in virtual currency to leave no trace” for investigators.
The prosecution added that A had “conspired” with another drug dealer to sell narcotics “in small quantities” in the capital Seoul.
South Korean Courts Fighting Crypto Drug War?
South Korean police have been waging what the nation’s President has called a “war” against youth crypto-powered drug crime.
In many cases, police have unearthed networks of crypto-holding teenagers and people in their twenties who use darkweb portals to find dealers.
But what appear to be South Korean drug dealers openly advertising their services on X (Twitter).
Most of these individuals direct would-be customers to Telegram addresses. Police say that dealers and drug buyers discuss payment on Telegram.
After dealers receive payment in their crypto wallets, police spokespeople have explained, they perform dead drops in districts of their customers’ choosing.
The dealers then send buyers photographs of the areas where they have left the drugs, as well as instructions on how to pick up the narcotics safely.
Crypto-powered Drug Crime Spirals in South Korea
Last year, another court in the same city sentenced one of A’s accomplices to two years and six months in prison, as well as a fine of around $9,000.
The court heard this individual distributed narcotics such as MDMA (ecstasy) and marijuana using dead drop methods for another dealer.
Eventually, prosecution officials explained, this individual created their own Telegram channel and began selling drugs for crypto.
Yonhap also reported that the court said it had shown “leniency” in sentencing as the man had “shown remorse for his actions.”
The presiding judge explained that the man “had made an immediate confession” to the police following his arrest.
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Guessing game on when GBTC bleeding stops helps push Bitcoin below $39K
A multibillion-dollar guessing game over an investor exodus from Grayscale’s Bitcoin Trust (GBTC) has pushed the price of Bitcoin below $39,000 for the first time in nearly two months.
Since its successful conversion to a spot Bitcoin exchange-traded fund (ETF) on Jan. 11, GBTC has posted over $3.4 billion in outflows, with Grayscale subsequently depositing billions in Bitcoin to crypto exchange Coinbase Prime — likely for sale.
However, there are fears that the GBTC exodus still has a longer road to travel. According to Bloomberg ETF analyst Eric Balchunas, GBTC recorded an outflow of $515 million on Jan. 23 and has now bled 13% of its shares outstanding. He noted, however, that the latest figures suggest the outflow could be slowing.
In a poll on X, Balchunas asked users how much further bleeding would occur before the “mass exodus ended.” Nearly half of the respondents said this could go to between 35-50% — though both Balchunas and fellow Bloomberg ETF analyst James Seyffart estimated this would happen at around 25% of shares outstanding.
Grayscale’s website shows there are currently 600.5 million shares outstanding, with a total of 536,694.9 Bitcoin in trust. Meanwhile, data from CC15Capital shows 82,525 Bitcoin has left GBTC since Jan. 10.
The recent bout of outflows has been attributed to defunct crypto exchange FTX, which reportedly sold two-thirds of 22.3 million shares in GBTC over three days of trading. The crypto exchange is understood to still have around 8 million shares, roughly $281 million worth yet to sell.
Meanwhile, some observers worry that Bitcoin from Mt. Gox may soon start to move after the Mt. Gox trustee reportedly reached out to creditors to complete identity verification for crypto exchange accounts, which are set to be used to repay Bitcoin and Bitcoin Cash — another potential pressure on the price of Bitcoin.
Bitcoin is currently trading at $39,949, up 0.60% on the day, according to data from CoinMarketCap. The Crypto Fear & Greed Index has hit a 100-day low with a score of 48 on Jan. 24.
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Bitcoin Price Drops Below $39k as Total Liquidation Reaches $320 Million in 24hrs
Bitcoin (BTC) is facing another wave of volatility falling below the $39,000 mark on Tuesday, a 4.33% slump in the past 24 hours. The largest crypto by market cap is currently trading at $38,955 at press time.
According to data from Coinglass, 124,153 traders were liquidated in the past 24 hours, resulting in the total liquidations reaching $326.47 million. “The largest single liquidation order happened on Bybit – BTCUSDH24 value $5.00M,” the data revealed.
Bitcoin price has dropped slightly over 9% in the weekly charts and has dropped 10.72% in the past month, per CoinMarketCap data. The plunge follows its sudden spike hitting a two-year high of over $49,000 as 11 Bitcoin exchange-traded funds (ETFs) started trading on Jan 11, following the SEC’s approval.
Bitcoin has been under pressure since Monday following the recent sell-offs over the last weekend. The decline comes in line with previous predictions from Chris J Terry, founding partner of BTC data Corporation. He recently expressed his concerns about the impact of GBTC’s massive sell-off on the cryptocurrency’s price.
With BTC price below $39k, it is less likely that the crypto will recover the bearish signal in the immediate future. However, experts believe that this trend might change, given the nearing of BTC’s next halving cycle in April.
Elsewhere, Ethereum also experienced downward trend, witnessing a 6% drop, reaching $2,230. The slump could be due to ETH’s substantial selling pressure from its Foundation. Further, Ethereum experienced the largest outflows, amounting to $13.6 million.
Altcoins and stablecoins were also seen in red, with Solana (SOL) down 8%, Avalanche (AVAX) down almost 10%, DAI and TRON falling less than 1% in the past 24 hours.
Bearish Sentiment Likely
With the prominent crypto losing its hold, crypto analysts have expressed their concerns, warning about a further decline in prices.
One Bitfinex analyst told Cryptonews that a considerable price correction even further down from current levels across the market “would not be surprising.”
“As bearish sentiment appears to be prevailing, the next crucial price levels for BTC that could provide support are estimated to be between $38,000 (close to the short-term holder realised price for BTC at $38,307) and $36,000.”
The analyst further said that many investors who acquired BTC less than a month ago, are now exiting the market at a loss. “Typically, such a substantial decrease in average profits for short-term holders, who tend to react more acutely to short-term market fluctuations, can be a precursor to selling pressure or exit liquidity” the analyst added.
Another Belgium-based crypto analyst Nestay posted on X (formerly Twitter) that the “drop is not over yet.”
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Coinbase has 70% chance of full dismissal in SEC lawsuit — Litigation analyst
Bloomberg senior litigation analyst Elliott Stein has indicated he sees minimal likelihood of failure for cryptocurrency exchange Coinbase in its ongoing lawsuit against the United States Securities and Exchange Commission (SEC). Stein forecasts a 70% chance of the exchange securing a full dismissal in the lawsuit.
In a post on Jan. 19 on X (formerly Twitter), Stein explained that before he entered the courtroom, he was confident that Coinbase could object successfully to certain SEC claims but not those allegations relating to its staking rewards program and overall operational structure.
However, his confidence shifted after the five-hour hearing:
“I went into SEC v. Coinbase hearing thinking COIN would, on this motion, win dismissal of SEC's primary claims (concerning trading) but maybe not staking and broker claims. I left thinking COIN would win full dismissal.”
The SEC alleges that by staking customer assets, earning rewards on their behalf and returning them, Coinbase is engaging in offering and selling investment contracts, thereby falling under SEC regulation.
Furthermore, the regulator alleges that Coinbase was operating as an unregistered broker. Meanwhile, Coinbase has strongly refuted this, stating there is no easy way for a crypto exchange to register for a license.
However, Stein explains it was a turning point when Coinbase provided a more precise definition of an “investment contract” than the SEC.
“My view the one offered by Coinbase as more compelling, requiring investment in a business vs. just an ecosystem, along with an enforceable obligation,” he stated.
However, he referenced the recent SEC vs. Ripple case, where Ripple achieved a partial victory in July 2023. The judge ruled that XRP is not considered a security when it comes to retail sales on cryptocurrency exchanges.
Stein suggests the decision around securities, in this case, will have a domino effect on Coinbase’s lawsuit, too.
“As the Ripple ruling in July suggested, sales of digital assets on public exchanges don’t fit neatly into the Howey test for what constitutes an investment contract,” he argued.
On Jan. 17 reported that U.S. District Judge Katherine Polk Failla heard arguments from the SEC and Coinbase on the crypto exchange’s motion for dismissal over a period of five hours.
In a notable point for the crypto community, Failla asked the SEC attorneys to explain why a digital token issuance would meet the Howey test, arguing the case was “too broad.”
The SEC filed a lawsuit against Coinbase on June 6, 2023, alleging the crypto exchange violated federal securities laws.
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Ethereum users can now stake an entire validator directly from MetaMask
Crypto wallet provider MetaMask has rolled out a new staking service enabling Ethereum users to run their very own validator node — for a price.
On Jan. 18, the crypto wallet provider introducedvalidator staking through MetaMask Portfolio.
MetaMask will run the validator node on behalf of stakers who deposit 32 Ether. At current Ethereum prices, this equates to roughly $78,752 — not a small sum.
There is no pooling or hardware required, it noted, stating, “We run your node securely, streamlining your staking rewards while reducing risks of slashing and downtime.”
The new service could be tempting for beginners and/or decentralists, as staking via MetaMask could resolve centralization concerns from large liquid staking providers such as Lido.
It also negates the necessity to purchase hardware to run a personal Ethereum node and eliminates the prospect of getting slashed due to internet outages.
Consensys, which manages the service, “has never received any slashing penalties in more than two years of operation, despite managing over $2 billion worth of ETH across more than 33,000 validators,” it stated.
Staking via MetaMask currently yields 3.8% per year; however, the platform also takes a 10% commission on the validator rewards.
Crypto portfolio tracker Rotkiapp Founder Lefteris Karapetsas said the new service is an “Interesting idea but a 10% fee makes it a completely unattractive option for any user who bothers to compare with the other available options out there.”
The yields from staking with MetaMask minus its fees are similar to what Lido offers at 3.4%.
Lido is the industry’s dominant liquid staking platform, with 9.3 million ETH worth $22.9 billion staked currently. This equates to around 40% of the total 28.8 million ETH staked, according to Ultrasound.Money. Around a quarter of Ethereum’s total circulating supply is locked in staking.
Other than decentralized staking providers, Ethereum holders can also use centralized exchanges such as Coinbase, which takes a whopping 25% cut of staking rewards.
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Spot Bitcoin ETFs scoop up another 10,500 BTC on day 5
Spot Bitcoin exchange-traded fund issuers added another net 10,667 Bitcoin to their crypto stacks as of their fifth trading day amid increasing trading volumes.
Data compiled by X account CC15Capital for Jan 17 shows that a net $440 million in Bitcoin was added to their holdings at the end of the day. BlackRock’s ETF accounted for most of this, with 8,700 BTC net gained — worth nearly $358 million.
The data also shows that nine ETFs (excluding Grayscale) have purchased nearly 68,500 BTC since their launch, currently worth around $2.8 billion.
The recent ETF-linked Bitcoin buys were partially offset by continued outflows from the Grayscale Bitcoin Trust (GBTC), which saw it sell 10,824 BTC — around $445 million worth. Nearly 38,000 BTC has left the GBTC since it was converted to a spot ETF on Jan. 11.
Meanwhile, data shared by Bloomberg ETF analyst Eric Balchunas highlighted the “Newborn Nine” — his nickname for the new spot Bitcoin ETFs excluding the GBTC — saw a 34% jump in daily volume as of the fifth-day trading.
“Normally with a hyped-up launch you see volume steadily decrease each day post-launch, rare to see it reverse back up,” he added.
However, it should be noted that data around Bitcoin buying as reported by ETF managers are delayed compared to each fund’s transaction volume figures due to purchase settlement delays.
With investors piling into the new funds, the Bitcoin ETFs from BlackRock and Fidelity each tallied over $1 billion in assets under management at the close of trading on Jan. 18, per data from Bloomberg ETF analyst James Seyffart.
Balchunas also noted that BlackRock and Fidelity’s Bitcoin ETFs are respectively in fourth and fifth position for weekly capital inflows across all U.S. ETFs. trailing only the Vanguard 500 Index Fund ETF (VOO), which aims to mirror returns of the S&P 500 — the 500 largest public U.S. companies.
CC15Capital also shared to X on Jan. 19 that Bitwise, so far, is the only asset manager to report its Jan. 18 Bitcoin holdings — which showed it adding another 491 BTC on the day.
“+$20,000,000 into BITB today,” Bitwise CEO Hunter Horsley wrote in a Jan. 18 X post. “Grateful for the trust to steward client’s assets.”
Bitcoin saw a less than 1% decrease over Jan. 17, but has seen an over $3.5% slide in the past 24 hours.
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Spot Bitcoin ETF volumes pass ‘insane’ $10B as GBTC sales slow
Spot Bitcoin exchange-traded funds (ETFs) have seen eight-figure trading volumes in the three days since their launch in the United States.
Data from Bloomberg Intelligence analyst James Seyffart uploaded to X (formerly Twitter) shows that as of Jan. 16, spot ETF volumes had passed $10 billion.
Spot Bitcoin ETFs smash ETF norms
Bitcoin’s newest ETFs have caused controversy since their Jan. 11 debut, with frenetic trading activity having little tangible impact on BTC price growth.
While some are wary as a result, fellow Bloomberg analyst Eric Balchunas argues that the raw figures speak for themselves.
“Let me put into context how insane $10b in volume is in first 3 days,” he commented on Seyffart’s post.
“There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire ’23 Freshman Class.”
In terms of net inflows and outflows, the picture continues to show sales from the Grayscale Bitcoin Trust (GBTC), which is newly converted to an ETF.
According to data from BitMEX research, the most significant net gains belong to BlackRock’s iShares Bitcoin Trust (IBIT) — up $700 million over three days.
GBTC, meanwhile, has seen net outflows of more than $1.1 billion — a phenomenon attributed to investors swapping between ETF products due to the product’s higher fees.
“GBTC total outflows are now at $1.18 billion vs. spot Bitcoin ETF inflows of $2B. It would be extremely encouraging if we continued this pace for the first month of trading,” James Van Straten, research and data analyst at crypto insights firm CryptoSlate, wrote in part of a response to the numbers.
Jan3 CEO Samson Mow meanwhile predicted a return to ETF equilibrium following a period of flux post-launch.
“Time is needed for everything to recalibrate,” he told X subscribers on Jan. 13.
“GBTC sell pressure won’t be a long drawn out process. Many just cannot sell because the tax hit is too big, and eventually Grayscale must capitulate on the fees. This is likely to be sooner rather than later.”
BTC price range still king
In the meantime, however, few anticipate a BTC price surge beyond the well-established trading range in place since the start of December 2023.
While some remain confident in market strength at the current $43,000, doubts linger over Bitcoin’s ability to avoid a fresh capitulation.
“Still see room to fall, regardless of a shorter-term pop,” popular social media trader JT argued about the weekly chart.
“Once we get to the bottom of the long-standing range, we can reevaluate.”
$41,500 has so far formed the floor for January price action, seeing repeated tests since 2024 began, per data.
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Bitcoin ETFs top 3X daily volume of all 500 ETFs launched in ’23 combined
The total volume across 10 spot Bitcoin ETFs on Jan. 16 has, on the same day, outpaced the total volume for all 500 ETFs launched in 2023 more than three times over.
Yahoo Finance data compiled by Cointelegraph shows the 10 recently approved spot Bitcoin ETFs generated just over $1.8 billion in total volume on Jan. 16, with funds offered by Grayscale, BlackRock, and Fidelity accounting for $1.6 billion of the total.
In comparison, the combined Jan. 16 trading volume for all 500 ETFs launched in the United States last year stood at just $450 million, according to Bloomberg ETF analyst Eric Balchunas.
BlackRock’s iShares Bitcoin Trust emerged as the clear leader in terms of attracting net inflows with more than $497 million over the past three days.
The total volume across all of the new spot Bitcoin ETF products reached nearly $10 billion across the first three days of trading according to figures by Bloomberg ETF analyst James Seyffart and Yahoo Finance data compiled by Cointelegraph.
While Grayscale’s Bitcoin fund still leads the pack in total trading volume — notching more than $5.1 billion — the fund has experienced considerable outflows as investors seek to reduce exposure.
The Grayscale Bitcoin Trust (GBTC) has witnessed more than $579 million in total outflows since it began trading on Jan. 11. Balchunas added that BlackRock’s product would continue to attract the most inflows making it the “most likely to overtake GBTC as Liquidity King.”
GBTC was once a boon for investors who would borrow money to enter the fund and then take profit from the Grayscale’s premium — typically used as a gauge for Bitcoin demand in the years before spot ETF products were available.
The profitability of this arbitrage trade rapidly backflipped into outsized losses when the premium suddenly became a discount, which trapped many investors in the fund, unwilling to sell their Bitcoin at a steep discount.
Following GBTC’s successful conversion to a spot ETF the discount has fallen as low as 1.55%, with investors who had their Bitcoin locked up for extended periods now taking the opportunity to get out.
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Bitcoin faces ‘very limited liquidity’ as BTC price pushed below $43K
Bitcoin saw rangebound swings on Jan. 15 as one analyst warned over order book liquidity.
Analysis: Bitcoin may need weeks to recover
Data tracked a trip to near $43,000 before BTC price volatility returned, sending the market down 1.5% in an hour.
The moves occurred on a Wall Street holiday, leaving the door open to more erratic price behavior.
In his latest posts on X (formerly Twitter), popular trader Skew noted that spot markets broadly lacked sufficient depth to ensure stability on low timeframes.
“Currently there’s very limited liquidity so expecting some kind of 1K candle to come out of nowhere later,” he wrote just before volatility hit.
“Above $42.8K, bulls can flex some muscle below yearly open market is vulnerable, bears could take control.”
The $43,000 round trip, Skew added, had been led by derivatives — and was thus likely unsustainable.
Considering how long BTC/USD might be licking its wounds after last week’s 15% dive, meanwhile, analyst Matthew Hyland saw the recovery potentially taking more than a month.
“Bitcoin may be about to go sideways here for a little while,” he commented alongside a chart showing buy and sell volumes.
“The last 4 times we saw this much red volume on the weekly; there was a minimum of 3-4 weeks of sideways price action. This environment would be beneficial for Ethereum+Alts if the dominance breaks down.”
The chart drew comparisons between last week’s panic selling and the atmosphere at the end of Bitcoin’s 2022 bear market.
One month left for a BTC price crash?
Turning to what comes thereafter, fellow popular trader and analyst Rekt Capital laid out the possible roadmap for BTC price action prior to April’s block subsidy halving.
Any last-minute gains, he showed, show themselves around two months prior to the event — giving bears precious little time to effect any major comedown.
“If BTC is going to perform a deeper retrace during its Pre-Halving period (orange), it should occur over the next 30 days or so,” part of a commentary on an accompanying chart summarized.
A subsequent X post additionally placed BTC/USD firmly within its established weekly trading range despite recent volatility.
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Bitcoin rent agreement: Landlord and tenant sign BTC contract
In Rosario, the third most populated city in Argentina, a local landlord and a tenant have sealed a rental agreement where the latter will pay monthly rent in Bitcoin. Accordingto a report in the local newspaper Paginal 12 from Jan. 11, the contract is the first of its kind in Argentina, made possible by recent law amendments by the new presidential administration.
The monthly payment under the sealed contract will equal $100 in Bitcoin. The tenant will transfer the funds monthly through Fiwind, a local crypto platform. The report highlights that both counterparties to the contract are experienced crypto users.
Argentine rental law, along with other parts of the national legal system were amended by the newly-elected President Javier Milei, who won the general election in November 2023 amid rampant inflation across the country.
In December 2023, Diana Mondino, the minister of foreign affairs, international trade and worship, claimed that a decree aimed at economic reform and deregulation would allow the use of Bitcoin and other cryptocurrencies in the country under certain conditions.
The government has also eased the path to legalizing crypto holdings even if they’re overdue on tax declarations. Under the framework of a regularization scheme, taxpayers would pay a flat tax on assets of 5% if they declare holdings by the end of March 2024, 10% from April and 15% from July until the end of September.
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‘No South Korea Bitcoin ETF Approval Before Elections,’ Say Experts
South Korean regulators will not give the green light to a domestic Bitcoin spot ETF before the nation’s next general elections, insiders claim.
Per Sobija Mandueneun Shinmun, anonymous financial investment industry officials believe that any new crypto regulation will now have to wait until the end of legislative elections in April.
South Korea goes to the polls on April 10. The opposition Democratic Party currently holds a massive 55% of National Assembly seats.
The officials predicted an “overhaul” of crypto law, in line with President Yoon Seok-yeol’s election manifesto promises.
However, Seoul-based regulators will not look to follow suit with their counterparts in Washington. One expert said:
“We believe that revisions to the laws and regulations governing virtual assets will be possible only after the general election is over. [Regulators] will, in the meantime, monitor the market situation to see how successful the US Bitcoin spot ETFs prove to be.”
South Korean securities providers have been cautioned about offering Bitcoin ETF access to overseas customers.
Two major brokerages put their spot BTC ETF products on hold at the end of last week, following a warning from the Financial Services Commission (FSC).
The FSC has promised to “review” its stance. But is yet to comment any further on the matter.
The regulator is also set to issue formal rules about the listing and delisting of tokens, following a series of related controversies.
Traders and lawmakers criticized exchanges for their failure to streamline the delisting of the LUNC (formerly LUNA) token in the wake of the Terra ecosystem crash of May 2022.
Exchanges also face flak from critics of their listing and delisting of the gaming-related coin WEMIX and the altcoin CTC.
South Korean ‘Crypto Revival’ Incoming?
Meanwhile, News1 reported that analysts are predicting bullish behavior from South Korean crypto traders following the US Bitcoin ETF news.
The media outlet quoted experts as stating that the retail crypto domestic market, “which has been stagnant for the past two years,” is set for a “revival.” One industry official explained:
“Despite its strict regulations, the South Korean market has the advantage of having a strong retail sector. When overseas markets revive, there is a strong tendency for [domestic investors] to follow suit.”
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Bitcoin faces ‘sell the news event’ before 2024 BTC price all-time high
Bitcoin should break new all-time highs in 2024 — but the halving will punish bulls first, new analysis says.
In its latest market update released on Feb. 2, trading suite DecenTrader predicted classic “halving year” BTC price behavior.
DecenTrader: Bitcoin will “test investors’ resolve” before Q4 all-time high
Bitcoin has around one month of sideways price action before markets begin to react to the upcoming block subsidy halving, DecenTrader believes.
Summarizing the BTC price roadmap for this year, CEO and co-founder Filbfilb told readers to expect a spike in buying around two months before the halving date, currently estimated for April 18.
This will be followed by another “sell the news event” — similar to the events surrounding the launch of spot Bitcoin exchange-traded funds (ETFs) in January.
“Circa 75 days remain until the Bitcoin halving, with it due to occur around the 18th April 2024. This is important if we make a simple assumption, that there will be buying interest some time before the halving. I would expect this to be no later than 6 weeks before the halving – or around the second week of March,” Filbfilb wrote.
“This would mean that Bitcoin has around 30 days from now to meander through its corrective phase before finding the FOMO demand anticipated.”
Anticipation among speculators could take BTC/USD to its current two-year highs of $49,000 before an ETF copycat sell-off ensues.
Thereafter, however, the path opens up to price discovery hitting before 2024 is over — a phenomenon seen during Bitcoin’s last halving year in 2020.
“Bitcoin has a tendency to front run the sell-the-news with a halving so bear that in mind,” Filbfilb continued.
“Following the Halving, Bitcoin has taken 220 – 240 days to break to new all time highs. I am expecting a similar outlook, with Bitcoin taking a trip to new all time highs in mid to late Q4 of 2024, which give some time for a correction to test investor’s revsolve inbetween.”
Bitcoin halving: Not different this time?
The timing of the coming months’ BTC price fluctuations makes Q1 difficult to navigate for traders.
As reported, beyond Bitcoin-specific factors, macroeconomic and geopolitical hurdles are lining up to cause wider risk-asset turbulence.
These include United States banking system weakness — something which Arthur Hayes, former CEO of crypto exchange BitMEX, sees coming to a head in March.
Others believe a new all-time high for BTC/USD will not come until the end of 2025.
For Filbfilb, there is little reason to be overly optimistic on what the coming weeks will bring.
“What has become apparent is that a lot of people are convincing themselves that Bitcoin is going to run to new all time highs ahead of the Halving because ‘it’s different this time,’” he explained.
“I personally expect it to be no different to previous instances; there is an uncannily accurate market cycle schematic for Bitcoin born out of the emotions of investors into an asset class to which many are emotionally attached – it seems unwise to expect this to break (favorably) now.”
BTC/USD traded at just under $43,000 into the Feb. 4 weekly close, per data from Cointelegraph Markets Pro and TradingView.
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Bitcoin price drops 1.3% in an hour as US payrolls smash estimates
Bitcoin fell into the Feb. 2 Wall Street open as United States unemployment data produced a surprise surge.
Markets slash odds of March Fed rate cut
Data tracked a $500 hourly candle dip on Bitstamp.
Bitcoin reacted immediately to U.S. nonfarm payrolls, which came in at nearly double estimates for January 353,000 versus 185,000 expected.
Sellers gained control as the numbers suggested that restrictive economic policy was not hurting the economy as much as assumed. Interest rates could thus stay higher for longer, depriving risk assets — including crypto — of liquidity.
On Jan. 31, the Federal Reserve unanimously opted to keep rates at previous levels, while Chair Jerome Powell sought to dispel rumors that cuts could come in March.
The jobless data furthered that narrative, with markets discounting the odds of a cut before May.
Per data from CME Group’s FedWatch Tool, the odds of the move occuring in March stood at 17.5% at the time of writing versus 45% earlier in the week.
“After all of the doom & gloom after last month's NFP data about how revisions would push the December figure lower, the reality is that the December numbers were revised up to +333k from +216k,” Caleb Franzen, founder of Cubic Analytics, responded on X (formerly Twitter).
“Those who doubt the economy continue to get it wrong.”
In his own reaction, financial commentator Tedtalksmacro was optimistic beyond the immediate short-term effects of the employment miss.
“Wouldn't be surprised if crypto is back at the highs in a few hours,” he wrote in an X post.
“Strong employment data is good data long-term, it's just that the market got too far out in front when pricing cuts - wake up call now…”
In a further headwind for crypto, the U.S. dollar index (DXY) made swift gains, reaching new 2024 highs.
GBTC outflows see fresh reduction
Offering some relief to Bitcoin bulls were outflows from the Grayscale Bitcoin Trust (GBTC) — one of the newly-launched spot Bitcoin exchange-traded funds (ETFs).
Flows to custodian Coinbase on the day totaled 4,400 BTC at the time of writing — a step lower than recent days and far less than the 25,000 peak seen in January, per data from crypto intelligence firm Arkham.
“Total net inflows were +$38M yesterday so another day of inflows although small,” popular trader Daan Crypto Trades commented in part of an X post on the data.
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BlackRock’s IBIT Bitcoin ETF crosses $2B in market cap
BlackRock's Bitcoin exchange-traded fund (ETF) reached $2 billion in assets under management (AUM) on Jan. 26, just two weeks after it debuted on the Nasdaq.
According to data released by Bloomberg analyst James Seyffart, Bitcoin’s price performance intraday has pushed the fund’s market capitalization to $2.11 billion. The cryptocurrency’s price has broken through $42,000 for the first time in nearly seven days after a sell-off following the launch of ETFs on Jan. 11.
“Assets under management” is a term used to describe the total market value of all the financial assets held by a fund on behalf of its clients. This means that BlackRock's iShares Bitcoin Trust (IBIT) is leading in the race for investors’ capital, just ahead of Fidelity’s Wise Origin Bitcoin Fund (FBTC) with $1.8 billion in flows over the previous 10 days.
BlackRock is leveraging its market reputation as the world’s largest asset manager to attract broader audiences to its crypto-based product.
Unlike asset managers such as VanEck, which targeted early adopters and the crypto community with Bitcoin ETF television ads, BlackRock chose to communicate to baby boomers with a two-minute video featuring one of its executives outlining Bitcoin’s value proposition and how investors can receive exposure to its new ETF.
The annual fees charged by issuers may also be contributing to capital attraction. BlackRock set its fee for the iShare ETF at 0.12% for the first 12 months or until the first $5 billion in assets under management, then plans to increase it to 0.25%.
Several other issuers offer competitive fees as well, with ARK Invest charging 0.21%, VanEck listing a fee of 0.25%, and Bitwise charging 0.20%. Fees on ETFs are not billed directly to investors but rather deducted from the ETF’s performance, which reduces investors’ return.
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Ethereum’s (ETH) 14% price drop overshadows improvements in investor interest: Report
The price of Ether rallied 77% in the lead-up to the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States, setting a year-to-date high at $2,715. But in the weeks since, ETH price has turned soft alongside the rest of the market.
The latest data from on-chain analytics firm Glassnode shows that despite the current downturn, Ether has outperformed Bitcoin in multiple areas.
ETH eclipses BTC
Glassnode’s latest “The Week Onchain” report highlights ETH’s outperformance of Bitcoin “on a quarterly, monthly, and weekly basis.”
Analyst Alice Kohn points to a significant surge of over 20% in Ether’s value against Bitcoin, a trend that aligns with similar activity in the ETH derivatives market.
Glassnode notes that this performance coincides with a rebound in ETH’s market dominance. According to the chart below, ETH has gained 2.9% in market cap dominance compared with Bitcoin since the spot BTC ETF approval.
Positive market sentiment reflected in ETH’s net unrealized profit/loss metric
Ether may be trading 14% lower over the last week, but market sentiment around the cryptocurrency remains positive. This is evidenced by the volume of net profits locked in by ETH investors, which has reached a new multiyear high, signaling significant changes in investor profitability.
Kohn said:
“While profits taking has increased since mid-October, the peak on 13-Jan reached over $900M/day, aligned with investors capitalising on the ‘sell-the-news’ momentum.”
Perhaps the most significant indicator supporting Ether’s positive sentiment is the net unrealized profit/loss (NUPL) metric for short-term tokenholders.
NUPL gauges the potential profit or loss of investors holding an asset based on the price at which they acquired their coins.
This metric has crossed above 0.25 for the first time since the November 2021 all-time high, indicating increasing optimism among holders.
According to Kohn, this could mean either a level of positive market sentiment is “creeping in for ETH” or that “markets tend to take a pause and digest profit taking distribution pressure.”
Expressing this optimism, trader Ken spotted a “manual stop,” saying that the ETH/BTC confluence was nearing a breakout with Ether’s price above $2,240.
ETH displays dominance in the derivatives market
The recent resurgence in Ether’s market performance, as highlighted in Glassnode’s report, suggests a potential shift in capital flows within the crypto market. A closer look at derivatives data reveals that Bitcoin’s perpetual swaps accounted for 55% of open interest in January 2022, which has since risen to 66.2%.
In comparison, “ETH open interest dominance decreased from 45% to 33.8% between 2022 and 2024,” according to Glassnode.
However, ETH regained some market share, with its dominance rebounding to approximately 40% by this metric following the ETF approval.
Ether’s recent market performance has sparked increased speculation among investors about the possible introduction of a spot Ether ETF.
According to Yield App chief investment officer Lucas Kiely, now that there is clarity after the Bitcoin ETFs — along with seven deadlines between May and August — Ether ETFs may come sooner than expected.
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Bitcoin price risks $30K over ‘supercharged’ inflation — Arthur Hayes
Bitcoin has a date with $35,000 or lower at the hands of fresh global macro turmoil, Arthur Hayes says.
In his latest blog post, “Yellen or Talkin’?” on Jan. 24, the former CEO of crypto exchange BitMEX makes a grim short-term BTC price forecast.
Hayes: Bitcoin appreciates 2024 inflation risk
Bitcoin may still be 75% up versus a year ago, but it faces a perfect storm of downside volatility catalysts this quarter.
For Hayes, these come in several guises: the Red Sea conflict between the United States and the Houthis with its impact on global shipping, the U.S. presidential election race and Federal Reserve policy.
The first of these has clear implications for inflation. Risk assets, including crypto, are looking for a “pivot” by the Fed as soon as March — lowering interest rates and attracting liquidity back to the market.
Higher shipping costs, however, could mean a spike in prices later in the year — something the Fed and Chair Jerome Powell will be keen to mitigate, Hayes explains.
“Due to weather and geopolitics, higher shipping costs could cause a surge in inflation in the third and fourth quarter of this year. As Powell is undoubtedly aware of these issues, he will do everything he can to talk a big game about rate cuts without having to actually cut them,” he writes.
“What might be a mild increase in the rate of inflation due to increased shipping costs could be supercharged by rate cuts and the resumption of QE. The market doesn’t appreciate this fact yet, but Bitcoin does.”
Hayes touches on the second piece of the puzzle: the strength of the U.S. regional banking sector.
As reported, since the meltdown of March 2023, the U.S. government has offered support in the form of the Bank Term Funding Program (BTFP) — a lifeline that is now due to expire.
Hayes thinks that this will come to pass despite the fact that banks’ financial predicaments have not gone anywhere. This and other questions over liquidity, however, depend on Treasury Secretary Janet Yellen’s next moves.
“The only thing that trumps fighting inflation is a financial crisis,” the blog post continues.
“That is why, to get the cuts, QT taper, and the possible resumption of QE the market believes is already in the bag come March, we first need a few banks to fail when the BTFP is not renewed.”
Bitcoin should “form support” below $35,000
Turning to Bitcoin, the writing may be on the wall, with turmoil over liquidity and the BTFP, combined with geopolitical risk, meaning that the 20% BTC price dip is the tip of the iceberg.
“A 30% correction from the ETF approval high of $48,000 is $33,600,” Hayes predicts.
“Therefore, I believe Bitcoin forms support between $30,0000 to $35,000. That is why I purchased 29 March 2024 $35,000 strike puts.”
He adds that sub-$35,000 levels now represent an opportunity to buy the dip.
BTC/USD hit $38,500 on Bitstamp on Jan. 23, its lowest since the start of December, before rebounding around $1,700 higher, per data.
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Why is XRP price down today?
XRP has been experiencing a downward trend in recent weeks, and Jan. 23 looks no different. On the day, the cryptocurrency dropped over 4% to $0.50. The reasons for this decline are both technical in nature and influenced by market sentiment.
XRP price technicals and investor behavior
From a technical perspective, XRP's ongoing decline is part of a broader downtrend that typically starts when the price tests a multi-month descending trendline resistance, as shown below.
XRP's most recent retest of the trendline came on Dec. 28; its price has fallen by about 25% since.
As of Jan. 23, this cryptocurrency is navigating another crucial technical threshold — a multi-month ascending trendline support. This particular support level has historically marked the onset of more extensive recoveries in the past months.
XRP shows bearish momentum, with the price trading below key moving averages and the RSI suggesting potentially oversold conditions. This could further attract buyers looking for a bargain at. current levels.
No spot XRP ETF product for now
In addition to technical factors, XRP's price decline today follows the buzz around the potential launch of a spot XRP exchange-traded fund in the U.S.
As of late, the market was hoping that BlackRock, the world's largest asset manager, would launch a spot XRP ETF.
These expectations dwindled on Jan. 18, when the firm reportedly clarified that it had no plans to launch such an investment product, dashing hopes for increased exposure and institutional investment for XRP.
XRP price has dropped by over 13% since the clarification.
Regulatory challenges
Further impacting investor sentiment, Ripple, the company behind XRP, is embroiled in ongoing legal disputes with the U.S. Securities and Exchange Commission (SEC).
The SEC's demand for Ripple to produce financial statements and a lawsuit scheduled for April 2024 exacerbates the air of regulatory uncertainty surrounding XRP. This has likely dampened investor enthusiasm and could be partially responsible for the recent sell-off.
XRP's supply among whales drop
XRPs decline today and January so far coincides with a decline in the supply held by its richest investors.
In January, there was a notable decrease in the XRP supply held by addresses with balances ranging from 100 million to 1 billion tokens (green). This reduction aligns with a rise in the supply held by investors who possess between 10 million and 100 million tokens (black).
This trend suggests that holders within the 100-million-to-1-billion token balance group have actively sold or redistributed their XRP holdings.
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Bitcoin ETFs post $76M in net outflows on ‘bad’ 7th day of trading
Spot Bitcoin exchange-traded funds (ETFs) have seen $76 million in net outflows on their seventh day of trading, according to new data from Bloomberg ETF analyst James Seyffart.
In a Jan. 23 post on X (formerly Twitter), Seyffart wrote that it had been a “bad day” overall for Bitcoin ETFs in the “Cointucky Derby,” noting that Grayscale has the largest net outflows among the ETFs.
“$640 million flow out today. Outflows aren’t slowing -- they’re picking up. This is the largest outflow yet for GBTC. Total out so far is $3.45 billion,” added Seyffart.
Seyffart said that overall, the flows into the spot Bitcoin ETFs remained positive, with BlackRock enjoying its third-largest days of positive flows so far, netting a total of $272 million in inflows on the day.
“On a net basis we have seen over $1.1 billion flow into spot bitcoin ETFs, even after accounting for the GBTC outflows,” he said.
While Seyffart admitted that the outflows from GBTC appeared to be “unceasing,” at this time, he expects the GBTC-led dumping to cool off in the coming fortnight.
Much of the outflows from Grayscale’s recently converted GBTC fund have been tied to outsized selling from the FTX estate.
According to a Jan. 22 report citing sources familiar with the matter, the FTX estate had offloaded roughly two-thirds of its 22.8 million GBTC shares by Jan. 22. The sale of the shares is estimated to account for approximately $600 million of the total net $3.4 billion in GBTC-related outflows.
The price of Bitcoin has fallen significantly since the 10 spot ETFs were approved on Jan. 10, plunging from a high of $49,100 to as low as $39,500 on Jan. 23. Bitcoin is currently holding steady at just above the $40,000 mark, according to data from TradingView.
Notably, Bitcoin’s downward price action comes amid a sudden and sharp decline in open interest on Bitcoin futures on the Chicago Mercantile Exchange (CME), suggesting a decline in enthusiasm among institutional investors to gain leveraged exposure to Bitcoin.
According to data from CoinGlass, open interest on the CME fell from a near-record high of $6.4 billion on Jan. 12 to $4.4 billion at the time of publication.
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Solana stablecoin transfer volume hits record monthly high of $300B
The transfer volume of stablecoins on the layer-1 Solana blockchain has been steadily increasing, hitting a new record so far this month.
According to blockchain analytics platform Artemis, stablecoin transfer volume on Solana has already exceeded $300 billion in January.
The figure has already eclipsed the $297 billion in Solana stablecoin transfer volume for December.
Moreover, January’s $303 billion to date is 2,520% more than the $11.56 billion stablecoin transfer volume in January 2023.
Solana’s stablecoin market share is currently almost 32% which is a huge increase from the 1.2% share it had a year ago.
Stablecoin activity on Solana started picking up in October and has steadily increased by 650% since then.
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Ethereum is the industry leader for stablecoin transfer volume with $317 billion so far this month giving it a market share of more than 33%, however, Solana is rapidly catching up.
The third largest blockchain for stablecoin transfersis Tron with $240 billion so far this month.
On Jan. 16, Artemis noted that weekly stablecoin volumes across all networks had reached a yearly high. It attributed the growth to USDC transfer volumes on Solana.
On Jan.18, Paxos announced that its regulated stablecoin USDP had launched on the Solana blockchain.
Over the past year, more than $1.18 trillion in stablecoins was transferred across all blockchains combined.
In addition to stablecoin volumes, there has been an uptick in decentralized finance (DeFi) activity on Solana. This has pushed total value locked to its highest level since September 2022 at $1.36 billion, according to DeFiLlama.
SOL prices have been in retreat this week, falling 2% over the weekend to trade at $93 at the time of writing. The asset has now retreated 25% from its December 2023 high of $123 and remains down 64% from its all-time high of $260 in November 2021.
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Bitcoin trader who called $48K BTC price top flags new bearish signal
Bitcoin may have more to lose if one BTC price chart pattern plays out as usual, warns veteran analyst Filbfilb.
In his latest update on X (formerly Twitter) on Jan. 19, the founder of trading suite DecenTrader sounded the alarm over Bitcoin’s descent to monthly lows.
Bitcoin’s three-day chart suggests start of downside
BTC price action fell to $40,600 overnight, marking almost a 20% retreat from last week’s local highs, data confirms.
While subsequently rebounding above $41,000, market strength is convincing few traders and analysts in the short term.
Filbfilb is among them, with three-day timeframes of particular concern.
Uploading a comparative chart, he showed that when the three-day chart crosses below the daily 50-period simple moving average (DMA), further downside tends to result. The chart extended to Bitcoin’s current all-time high of $69,000, seen in November 2021.
“3 Day red with a break below 50 DMA. There are a few examples of this happening in the past,” he commented.
Previously, Filbfilb successfully estimated Bitcoin topping out at $48,000 around the announcement of the approval of United States-based spot Bitcoin exchange-traded funds (ETFs). A similar BTC price target is in place for April’s block subsidy halving.
Bitcoin traders stay cautious
Meanwhile, the overnight dip sent BTC/USD below its 2024 opening price.
Analyzing liquidity conditions, financial commentator Tedtalksmacro flagged $40,000 as the next crucial level to hold.
As reported, various market participants view the mid-$30,000 range as a potential bounce zone to come.
“I think we need 1 more (smaller) leg down before we can bounce. Last nights bounce not convincing me…,” popular trader Crypto Ed, creator of trading group CryptoTA, wrote on the day, preceding in-depth analysis.
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Bitcoin mining sustainable energy usage hits all-time high of 54.5%
The Bitcoin ESG Forecast has revealed that Bitcoin mining using sustainable energy has increased to a new all-time high of 54.5%, with sustainable mining rising by 3.6% overall during the calendar year of 2023.
According to an article on its blog, The Bitcoin ESG Forecast analyzed data from its Bitcoin Energy and Emissions Sustainability Tracker, or BEEST model and compared the sustainable energy mix of Bitcoin to other industries over the past four years using publicly available data.
According to the data, Bitcoin mining is currently the highest user of sustainable energy (54.5%) across multiple subsectors, and it has achieved an increase in sustainable mining of 3.6% for the calendar year of 2023 compared with other global industries.
The Bitcoin ESG Forecast found off-grid Bitcoin miners using methane emissions. According to the research, small oil producers in Canada and the U.S. pay for permits to flare natgas, with some venting methane directly, which is harder to detect.
However, some mining companies use vented methane to generate electricity for Bitcoin mining, reducing environmental impact compared to venting it into the air. This means the Bitcoin network mitigates 7.3% of all its emissions without offsets, a new all-time high and the highest level of non-offset-based emission mitigation of any industry.
According to the article, additional off-grid renewable mining, such as Tether’s expansion into hydro mining in Latin America and the discovery of more off-grid methane-mitigating mining, means that the Bitcoin network uses more sustainable energy than ever.
After the ban on mining in China and its effective prohibition in Kazakhstan, miners predominantly moved to greener grids in North America or sustainable off-grid sites. The post states that global grids are becoming greener at 0.7% per year, resulting in a 29% improvement in emission intensity for on-grid Bitcoin miners compared to 2021.
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EU banking authority extends Anti-Money Laundering guidance to crypto
The European Union’s Anti-Money Laundering and Counter-Terrorist Financing guidelines have been extended to European crypto companies following a decision from the region’s banking watchdog.
The European Banking Authority (EBA) said on Jan. 16 that the amended guidelines aim to help crypto asset service providers (CASPs) identify their exposure risk to financial crimes due to their “customers, products, delivery channels and geographical locations.”
The guidelines also outline how crypto firms should adjust their financial crime-fighting measures, which could include “the use of blockchain analytics tools,” the watchdog added. The guidelines will apply from Dec. 30, 2023.
The EBA claimed the latest amendments are “an important step forward in the EU’s fight against financial crime” and “harmonizes the approach” for crypto firms across the union to mitigate money laundering and terror financing.
The updated guidelines will add cryptocurrency and crypto company-specific risks and guidance to financial firms holding or serving crypto firms.
Financial crime risk assessment guidance is also included with crypto firms directed to consider the potential risks associated with “anonymity-enhancing features,” self-hosted wallets, decentralized platforms and products that allow transfers between the company and such services.
In 2023, the EU finalized its Transfer of Funds Regulation (ToFR) governing crypto transfers and the comprehensive and wide-ranging crypto Markets in Crypto-Assets (MiCA) regulations.
MiCA’s crypto investor protections are set to come into effect in December, but EU member states can optionally implement an 18-month transitional period for CASPs, allowing them to operate unlicensed.
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Bitcoin daily RSI hits 4-month lows, with BTC price still up 70%
Bitcoin (BTC) is rapidly headed for oversold territory despite still trading above $40,000, the latest data shows.
As noted by analyst Matthew Hyland on Jan. 14, Bitcoin’s relative strength index (RSI) hit its lowest levels since September this week.
BTC price RSI echoes $25,000 levels
BTC price performance suffered a 15% drop after the launch of the United States’ first spot Bitcoin exchange-traded funds (ETFs) — and has so far struggled to bounce back.
As traders warn of the risk of further downside, the RSI is showing that a reversal may already be near.
On daily timeframes, the classic momentum oscillator dipped to 42.7/100 on Jan. 14 — lower than at any point in the last four months, as confirmed by data from Cointelegraph Markets Proand TradingView.
At the time, BTC/USD traded at around $25,000.
The move was not lost on Hyland, who uploaded a chart to X (formerly Twitter), which suggested a hidden bearish divergence playing out, with RSI making lower lows while Bitcoin makes higher lows.
Daily RSI is nonetheless not strictly indicative of an imminent return to form for BTC price strength.
Having sunk below the midpoint of 50/100, the metric’s next major test could be the barrier to its “oversold” area at 30/100.
“I would like to see the Daily RSI go down to Oversold for Bitcoin,” popular trader and social media commentator Seth wrote in part of a recent X post.
On hourly timeframes, RSI pierced the 30/100 line in the sand twice this week, both times recovering and making higher lows in the process.
Bollinger Bands reflect return of volatility
Last week, meanwhile, fellow trader Jelle meanwhile noted that by contrast, a trip back to “overbought” levels above 70 can often mark the start of the steepest upside on BTC/USD.
As reported in December 2023, RSI is just one of several key metrics currently on the radar of market participants.
Another is the Bollinger Bands volatility indicator, the daily chart for which now shows BTC/USD back in volatile mode after a period of constriction.
Current prices mark a trip to near the bottom of the expanding channel, which has likewise not been truly challenged since mid-September.
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Over $4 Million Worth of Assets Stolen By Solana Wallet Drainers: Scam Sniffer
Solana users should be vigilant for phishing attacks
In a recent report, the firm tracked multiple activities of bad actors across phishing websites that target Solana users and the evolving methods used by these sites to target vulnerable digital asset users.
The activities of the listed bad actors led to about $4.17 million in asset losses from 3,947 users across several phishing campaigns as the number of phishing incidents continues to grow in the wider market.
Scam Sniffer received reports from a user about an airdrop phishing incident that involved a fake non-fungible token (NFT) offering leading to loss of assets after signing the transaction.
This model of phishing scams was carried out targeting ZERO token holders with links to fake NFT sites and subsequent deployment of links through the tokens.
Further investigation reveals that opening the links was met with a message of failed simulation, leading to the victim’s confirming the transaction, the details of which were hidden.
According to a report from Dune, approximately $2.14 million has been lost targeting 2,189 victims with tokens such as BONK, ZERO, USDT, and USDT lost.
Bad actors turn to sophisticated schemes
Per the report, scammers in the past months have resorted to a more sophisticated phishing technique used to exploit victims leading to losses amid security efforts taken by firms.
The new model spotted involved scammers accruing out phishing activities without any deployment of NFTs because the Solana network doesn’t blacklist those NFTs. Node Drainers was spotted in the links shared on X (formerly Twitter) after the social media account of Mediant was hacked, claiming to distribute Phantom tokens to users.
“The $PHNTM distribution has officially started. Our snapshot recorded over 250,000 wallets, head over to our website to check if you are eligible to claim… the amount of tokens you will receive depends on your portfolio and snap position.”
This new model wiped out about $2.02 million from the market from 1,759 users in less than two weeks raising the total figure to nearly $4 million.
While firms continue to increase efforts to block scammers, bad actors devise new schemes to divert user funds through phishing links.
“We have also noticed they self-hosted a Matomo instance and tracked each step. they are trying to track data to improve conversion rates. This also appeared in the Christmas phishing campaign targeting Bonk holders, through the transaction ID issued in their channel. We linked this to the associated on-chain data.”
Cryptonews reported the growing rate of phishing scams across 2023, leading to over $375 million in losses per Chainalysis data with firms advising users not to sign transactions unless they trust the platform.
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