Selected News:

1. Bitcoin fell below $42,000 in a short period of time, with a 24-hour decline of 1.85%.

2. Grayscale transferred 2,682 BTC to Coinbase Prime and moved another 5,281 BTC to a new custody address.

3. FTX is expected to fully compensate customer claims in bankruptcy liquidation, but will not restart.

4. CME data shows that the probability of a Fed rate cut in March has dropped to 35.5%.

5.JUP is online on Bitget, reaching $2.3.

Price Observation

Bitcoin falls below $42,000 in the short term, with a 24-hour decline of 1.85%

On February 1st, according to OKX market information, Bitcoin briefly fell below $42,000 and is now priced at $41,998, with a 24-hour decline of 1.85%.

In the past 12 hours, the entire network has liquidated $145 million, with long positions being the main ones to be liquidated.

On February 1st, according to Coinglass data, the entire network liquidated $145 million in the past 12 hours, with long positions liquidated $117 million.

JUP launched on Bitget and reached $2.3

On January 31st, according to Bitget market data, Jupiter (JUP) reached a high of $2.3 after trading began at 23:10 today, before falling back to a current price of $0.98.

FTT Short-term Surge Exceeds 20%

On February 1st, according to market data, FTT rose more than 20% in a short period of time and is now priced at $2.95.

JTO drops below $2 in a short time, with a 24-hour decline of 12.8%

On January 31st, according to market data, JTO briefly fell below $2 and is currently trading at $2.005, with a 24-hour decline of 12.8%.

ALT drops below $0.36 in a short period of time, with a 24-hour decline of 16%

On January 31st, according to market data, ALT briefly fell below $0.36 and is currently trading at $0.368, with a 24-hour decline of 16%.

Transaction Tracking

Huang Licheng transferred 3.75 million CRV purchased from Curve founder to Binance 15 minutes ago

On February 1st, according to data from Yu Jin, the founder of Curve, Michael Egorov's CRV, which was sold OTC in August last year, has ended its 6-month lock-up period today. Huang Licheng transferred the previously purchased 3.75 million CRVs (worth about $1.75 million) to Binance 15 minutes ago, expecting a 16% return on investment.

Grayscale transferred 1781 BTC to Coinbase Prime address again 25 minutes ago

On January 31st, according to Arkham data monitoring, Grayscale transferred approximately 1781 BTC to Coinbase Prime address, worth about $77.225 million, about 25 minutes ago.

Grayscale transferred 2,682 BTC to Coinbase Prime and another 5,281 BTC to a new custody address.

On January 31st, according to Arkham data monitoring, Grayscale transferred 2,682 BTC worth approximately $114 million to the Coinbase Prime Deposit address 15 minutes ago. It also transferred 5,281 BTC to a new address, which is suspected to be Grayscale's new custody address.

A certain newly created address bought 4288 ETH on the chain 50 minutes ago

On January 31st, according to on-chain data analyst Yu Jin's monitoring, a newly created address spent 1000 USDT to buy 4288 ETH on-chain 50 minutes ago, at an average price of $2,332. It is reported that the 10 million USDT was transferred from an address starting with 0x72F to the new address for the purchase of ETH through an intermediate address one hour ago, most of which were withdrawn from HTX and Kraken in the past 7 days.

0x37 whale address deposited 15 million USDT into Binance and withdrew 6,507 ETH

On January 31st, according to Scopescan data monitoring, a whale address starting with 0x37 just deposited 15 million USDT into Binance and withdrew 6,507 ETH.

On February 1st, according to an official announcement, bankrupt cryptocurrency lending platform Celsius announced that the company has completed the transaction based on the confirmed restructuring plan. The plan includes distributing over 3 billion US dollars worth of cryptocurrency and fiat currency to Celsius creditors, as well as creating a new Bitcoin mining company, Ionic Digital, Inc., which will be owned by Celsius creditors and managed by mining enterprise Hut 8.

Celsius announced that, according to the MiningCo Transaction, the company has begun distributing over 3 billion USD worth of liquid cryptocurrencies and fiat currencies to creditors starting today. Ionic Digital has been created as a new Bitcoin mining company and will continue to provide recovery services to creditors. The MiningCo Transaction includes a cash capitalization of 225 million USD for the new entity (NewCo) and the transfer of specific mining assets to NewCo, excluding Core Rhodium, Mawson, and Luxor assets.

Binance will launch JUP 1-50x U-based contracts on February 1 at 2:30 am

On February 1st, according to official sources, Binance will launch JUP 1-50x U-denominated contracts at 2:30 AM Beijing time on February 1st.

Coinbase will list ZetaChain (ZETA)

On February 1st, according to official sources, Coinbase will add support for Zetachain (ZETA) on the Ethereum network (ERC-20 tokens). If liquidity conditions are met, trading will begin later today.

FTX is expected to fully pay customer claims in bankruptcy liquidation, but will not restart

On February 1st, according to Reuters, FTX bankruptcy lawyers stated that FTX is expected to fully repay cryptocurrency customer assets in the bankruptcy liquidation. In addition, due to a lack of buyers, FTX has also abandoned its plan to restart.

Bitget will launch MATR1X (FIRE) at 17:00 on February 1st.

On January 31st, Bitget announced that it will list the Matr1x Fire token FIRE, and the trading channel will be open on February 1st at 17:00. As the gaming token of Matr1x Fire, FIRE is an important functional token in the ecosystem. Users can use this token to experience various usage scenarios in the game, such as upgrading character images, opening blind boxes, and participating in esports competitions.

Bitfinex Securities launches digital asset services in El Salvador

On January 31st, according to The Block, Bitfinex Securities has become the first licensed provider of digital asset services in El Salvador. It is currently accepting client applications and has established a series of potential channels for tokenized financial asset issuance, with an expected listing in the first half of this year.

Former UK Chancellor of the Exchequer George Osborne joins Coinbase advisory board

On January 31st, according to the Financial Times, former UK Chancellor of the Exchequer George Osborne joined the Coinbase advisory board. It is reported that George Osborne served as Chancellor of the Exchequer from 2010 to 2016, and has since held a series of other positions. He currently serves as a partner at boutique investment bank Robey Warshaw and chairman of the British Museum.

LBank will simultaneously launch JUP and open trading at 23:40 on January 31st.

On January 31st, according to official sources, LBank will launch JUP (Jupiter) simultaneously across the network, and the trading channel will be open at 23:40 Beijing time on January 31st. Jupiter is the main liquidity aggregator for Solana, providing the widest range of tokens and the best route discovery between any token pairs. Previously, the concept meme coin Jupiter had continued to rise, laying a good foundation for the launch of JUP.

Viewpoint Data 

Arthur Hayes: Bitcoin may replicate last March's trend

On February 1st, BitMEX co-founder Arthur Hayes stated on his social media platform that the New York Community Bank may experience unexpected losses due to loan loss reserves, which could trigger a stock sell-off and prompt the Federal Reserve to start printing money. It is expected that Bitcoin will experience a slight downturn, and if the New York Community Bank experiences a sell-off, regulators will immediately provide assistance, at which point Bitcoin will replicate its trend from March of last year (BlockBeats note: Bitcoin rose 22.96% in March 2023).

The 14th trading day of Bitcoin ETF: BITB inflows $18 million, ARKB inflows $15 million

On February 1st, Bloomberg ETF analyst James Seyffart posted on social media that on the 14th trading day of the spot Bitcoin ETF, BITB saw an inflow of $18 million and ARKB saw an inflow of $15 million. In addition, GBTC saw an outflow of $188 million, which was the least outflow day since the first trading day on January 11th.

Grayscale GBTC Bitcoin holdings decreased by approximately 5086 coins on January 31 compared to the previous day.

On February 1st, according to the daily position update released by Grayscale, as of January 31st, 2024, the number of Bitcoins they hold is 487,025.986, a decrease of 5086.4674 from yesterday's 492,112.4534. In addition, as of January 31st, the asset management scale (non-GAAP) of GBTC was approximately $20.708 billion, with circulating shares decreasing to 545 million, and each share holding approximately 0.00089353 BTC. Furthermore, according to BitMEX Research data monitoring, the outflow of funds from Grayscale's GBTC on the 14th trading day was approximately $188 million, lower than the previous day's $220 million.

CME data shows the probability of a Fed rate cut in March has dropped to 35.5%

On February 1st, according to CME FedWatch, the probability of the Fed maintaining interest rates in the range of 5.25%-5.50% in March is 64.5%, while the probability of a 25 basis point rate cut is 35.5%. The probability of maintaining interest rates in May is 5.4%, with a cumulative probability of a 25 basis point rate cut at 62.1% and a cumulative probability of a 50 basis point rate cut at 32.5%.

Federal Reserve Chairman: Committee has broad disagreement on interest rate cuts, unlikely to cut rates in March

On February 1st, Federal Reserve Chairman Powell stated that interest rates may have peaked and have clearly entered a restrictive range; if necessary, they are prepared to maintain current rates for the long term. The meeting did not propose a rate cut recommendation and did not actively consider a rate cut. In addition, there is widespread disagreement within the committee regarding a rate cut and it is unlikely to occur in March; based on data, it may be delayed or brought forward. It is uncertain how many months of low inflation are needed to gain "confidence".

The Federal Reserve keeps interest rates unchanged, in line with market expectations.

On February 1st, the Federal Reserve announced its first interest rate decision for 2024, keeping the benchmark interest rate unchanged at 5.25%-5.50%, in line with market expectations.

Federal Reserve FOMC Statement: No Interest Rate Cut Until More Confident About Inflation Approaching 2%

On February 1st, according to the Fed FOMC minutes, Fed officials believe that the target risk is "trending towards a better balance" and they will not cut interest rates until they have more confidence that inflation is approaching 2%. The Fed will consider "any adjustments" to interest rates and reiterated that inflation has eased somewhat over the past year but remains elevated.

Tether 2023 Financial Report: Q4 profit of 2.85 billion US dollars, total annual profit of 6.2 billion US dollars

On January 31st, Paolo Ardoino, the CEO of Tether, released a summary of Tether's Q4 2023 financial report on social media. The key points include: · Tether's Q4 2023 profit was $2.85 billion, of which approximately $1 billion was net profit (mainly from US Treasury bond interest), and approximately $1.85 billion came from its holdings of gold and bitcoin. · Tether's total profit in 2023 was $6.2 billion. · Cash and cash equivalents currently cover 90% of all issued tokens, the highest ratio in history.

The cryptocurrency industry has raised over $85 million for the 2024 US election.

On January 31st, according to Axios, the cryptocurrency industry raised over $85 million for the 2024 US election. The funds mainly came from cryptocurrency companies, executives, and investors, with the aim of promoting the legitimacy of the industry. Major donors include Coinbase, venture capital firm Andreessen Horowitz, and Ripple, each donating at least $20 million. The Fairshake Super PAC and its affiliated organizations have raised $6 million since the beginning of this year, in addition to the previously confirmed $78 million. The committee has already spent over $1 million on TV ads supporting cryptocurrency-friendly politicians.

CertiK: Web3 security incidents in January increased by 135% YoY, with losses of approximately $77.1 million

On January 31st, CertiK released the Web3 Security Report for January, stating that they observed a sharp increase of 135% in Web3 security incidents in January 2024 compared to the same period last year, resulting in a total loss of approximately $77.1 million. Phishing was the biggest factor, while vulnerability exploitation and flash loans also caused significant losses.

JPMorgan: Market "too optimistic" about Fed rate cuts

On January 31st, according to Coindesk, the financial market may be too optimistic about the speed and pace of the Federal Reserve's policy relaxation through interest rate cuts this year. The macro strategy team at JPMorgan, led by Shrenick Shah, stated that the key inflation areas closely monitored by the Federal Reserve have not shown clear signs of deflation.

They said that the Fed's commitment to fighting potential inflation rebounds is still underestimated, which has opened the door to adjustments in risk assets. Previously, as inflation fell back in 2023 and the Fed hinted at a shift to rate cuts at its December meeting, rate cut expectations became widespread. According to data from the federal funds futures market, traders expect a rate cut of 140 basis points this year, almost twice the rate cut shown in the Fed's December rate forecast chart (the so-called dot plot).

Data: It is expected that after the opening of the US stock market on January 31, approximately 15,804 BTC will be transferred to each ETF custodial address.

On February 1st, according to CryptoSlate, BlackRock submitted a plan in a filing to the US Securities and Exchange Commission (SEC) on January 31st, proposing to advertise its Bitcoin spot ETF on the side of buildings. The filing briefly described BlackRock's plan, stating: "The IBIT advertisement is an animation intended to be projected onto the exterior walls of former financial institutions in New York, Miami, and Los Angeles. This storyboard uses our Miami facade as a template."

IBIT code is exposed in most animations. This advertisement displays the timeline of events before BlackRock launched its spot Bitcoin ETF in January this year. The scene includes the launch of the first stock market in the United States in 1790, the launch of the first US ETF in 1993, the launch of Bitcoin in 2009, and the launch of the first Bitcoin futures contract in 2017. The highlighted scene slogan includes "A new era of admission" and "Spot Bitcoin ETF is here". As mentioned above, BlackRock plans to place the advertisement on former bank buildings.

It is currently unclear whether the company plans to only do this on its own properties or if it plans to lease properties from other companies. The building shown in the presentation appears to be a shared building located at 360 Rosemary Avenue in West Palm Beach, Florida. BlackRock previously released a more traditional advertisement for IBIT on January 14th. Compared to competing ads from companies such as Hashdex, VanEck, and Bitwise, this ad was recognized for its simple and informative approach. Meanwhile, private investor Fred Krueger observed that some websites have begun displaying online ads for BlackRock's IBIT fund.

The lobbying organization Fairshake, which supports politicians in the encryption industry, has raised $85 million with support from Coinbase, a16z, and others.

On February 1st, according to Bloomberg, Fairshake, a lobbying organization that supports the cryptocurrency industry, has raised $85 million so far, with Coinbase and its CEO Brian Armstrong contributing nearly one-third of the funds.

The spokesperson of the committee, Josh Vlasto, said that he personally donated $1 million to Fairshake, Coinbase donated $24.5 million, and Fairshake also received $20 million from venture capital firm Andreessen Horowitz (a16z). Other donors include Ripple, which donated $20 million, and Electric Capital, a venture capital firm that donated $500,000.

The Singapore High Court approves DeFiance Capital's lawsuit against Three Arrows Capital

On February 1st, the Singapore High Court rejected the application of bankrupt cryptocurrency hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit filed by Cheong Jun Yoong (also known as Arthur Cheong) in April. Cheong is the founder of Web3 investment firm DeFiance Capital. In the lawsuit filed in April 2023, Cheong claimed that the investors of DeFiance Capital are the ultimate beneficiaries of the trust assets held by 3AC, and that 3AC's estate should not use these funds to satisfy claims from its creditors.

The plaintiff reached an agreement with 3AC founders Su Zhu and Kyle Davies to launch an "independent and separate fund on the 3AC platform, which will be owned and controlled by the plaintiff." The fund can use 3AC's resources, such as backend infrastructure, fund administrators, and auditors. This fund, ultimately named DeFiance Capital, has an independent account and wallet under Cheong's name.

It paid 25% of the fees incurred to Zhu and Davies as fees. In May 2022, the DeFiance Capital account contained 22.3 million USDT and 93.8 million other cryptocurrencies and fiat currencies. 3AC created sub-accounts for DeFiance Capital in FTX and Binance's accounts and set up an independent workspace on Fireblocks, 3AC's custodian provider's platform.

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