Whale Sells $47 Million In ETH And Causes A Crash In The Crypto Market

@newsontheblockchain, 03/10/2024

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Global Stats:

• Cryptocurrencies: 2.4M+

• Exchanges: 751

• Market Cap: $2.11T (↓ 1.81%)

• 24h Volume: $94.54B (↓ 18.97%)

• Bitcoin Dominance: 56.99%

• Ethereum Dominance: 13.5%

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• Fear & Greed Index: 36/100 (Fear)

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💹 Market Highlights:

• Total DeFi Volume: $5.19B (5.49% of total volume)

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• Coin with Highest % Change: Aptos $APT $8.48 +11.75% (1d)

📈 Preview On Today’s News:

1. - Ethereum Faces Market Turbulence as ICO Whale Offloads $47 Million Worth of ETH

2. - Bipartisan Support Grows for Strategic Bitcoin Reserve in the U.S.

3. - Ripple vs. SEC: Ripple CEO Pledges to Challenge Appeal

🔥Heat Map:

Top 10 News for today:

1)

Ethereum Faces Market Turbulence as ICO Whale Offloads $47 Million Worth of ETH

The Ethereum market experienced a sharp decline as a major investor from the 2014 ICO sold off 19,000 ETH, valued at approximately $47.5 million, triggering a nearly 10% drop in ETH's price since the start of October. This move follows a previous sale of 12,000 ETH, worth $31.6 million, in late September, further compounding market uncertainty. Despite these significant sales, prominent Ethereum supporters and institutional investors remain optimistic. Key figures continue to highlight Ethereum’s ongoing developments, such as account abstraction and upcoming upgrades, which are expected to strengthen the network. Additionally, the inflow of $20 million into Ether ETFs, primarily driven by BlackRock, suggests renewed institutional interest and confidence in Ethereum's long-term potential.

• Key Impact: The liquidation by an Ethereum ICO whale resulted in a significant market impact, with ETH’s price dropping from $2,650 to an intraday low of $2,365, sparking concerns about Ethereum’s near-term performance.

• Community Resilience: Despite the downturn, both the Ethereum community and institutional investors remain confident, driven by planned network improvements and increased ETF inflows, indicating strong future growth potential for Ethereum.

2)

Bipartisan Support Grows for Strategic Bitcoin Reserve in the U.S.

Support for a strategic Bitcoin reserve is gaining bipartisan momentum as lawmakers, including California Representative Ro Khanna and Senator Cynthia Lummis, advocate for integrating Bitcoin into the U.S. financial strategy. Lummis's proposal to allocate existing Federal Reserve and Treasury funds to acquire 1 million Bitcoin has garnered backing from both parties. This bipartisan initiative could position the U.S. as the largest nation-state holder of Bitcoin, reshaping its role in global finance. Khanna’s endorsement marks a shift among Democrats, aligning them with Republican leaders and suggesting that embracing digital assets might become a key political strategy for the 2024 elections.

• Bipartisan Momentum: The proposal to establish a strategic Bitcoin reserve has garnered bipartisan support from lawmakers such as Senator Cynthia Lummis and Representative Ro Khanna, signaling growing consensus on the digital asset's potential as a national reserve.

• Political Strategy Shift: Khanna’s endorsement represents a shift among Democrats, aligning with Republican views on Bitcoin, and suggests that cryptocurrency could play a significant role in shaping political campaigns in the upcoming 2024 elections.

3)

Ripple vs. SEC: Ripple CEO Pledges to Challenge Appeal

Ripple CEO Brad Garlinghouse has vowed to challenge the U.S. Securities and Exchange Commission (SEC) in court following the agency’s recent appeal against a ruling on the status of XRP. Last year, Judge Analisa Torres ruled that XRP is not a security when sold to the public but is considered a security when sold to institutional investors, giving a partial win to both sides. Ripple's Chief Legal Officer, Stuart Alderoty, criticized the SEC’s decision to appeal as "disappointing" and stated that the lawsuit has been “irrational and misguided from the start.” The SEC’s appeal follows a period of internal turmoil, with the resignation of the SEC’s Enforcement Director, Gurbir Grewal, just before the appeal was filed.

• Ripple CEO’s Response: Brad Garlinghouse pledged to continue the legal battle against the SEC, stating that the regulator should have moved on from the case after last year’s mixed ruling. Ripple’s Chief Legal Officer, Stuart Alderoty, also condemned the SEC’s decision as disappointing and irrational.

• Legal Context and Developments: The SEC’s appeal challenges a prior court ruling that XRP is not a security when sold to the public but is a security when sold to institutional investors. Ripple sees the lawsuit as baseless, and its legal team has pointed out that the court rejected claims of fraud, with no victims or losses linked to XRP sales.

4)

SWIFT to Trial Digital Asset Transactions in 2025

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has announced plans to conduct digital asset transaction trials in 2025, involving banks from North America, Europe, and Asia. These trials aim to explore the integration of multiple digital currencies and assets within its network, addressing the current fragmentation in the digital asset economy. By leveraging its global reach, SWIFT intends to unify disparate networks, providing seamless transaction capabilities between digital assets and traditional currencies. The initial use cases will focus on payments, foreign exchange, and securities to enable multi-ledger delivery-versus-payment (DvP) and payment-versus-payment (PvP) transactions. This initiative highlights SWIFT's strategic position to facilitate cross-network interoperability and drive global adoption of digital assets.

• SWIFT's Digital Asset Trials: Set for 2025, these trials aim to integrate multiple digital currencies and assets, targeting payment, foreign exchange, and securities transactions across a fragmented digital asset landscape.

• Global Financial Connectivity: SWIFT will leverage its position to bridge the gap between disconnected platforms, promoting unified access to digital and traditional currencies to facilitate seamless global transactions.

5)

Metaplanet Utilizes Bitcoin Put Options to Boost Holdings

Metaplanet Inc., a Tokyo-listed bitcoin holder, has employed a strategic options trading method to increase its bitcoin holdings, diverging from traditional accumulation strategies used by its peers like Microstrategy. The company sold 223 contracts of bitcoin put options with a $62,000 strike price, generating 23.972 BTC ($1.44 million) in premium income. If Bitcoin's price falls below the strike price by the option's expiration date on December 27, 2024, Metaplanet would need to purchase an additional 223 BTC, using margin collateral of $13.826 million. This strategy allows Metaplanet to enhance its holdings while offsetting potential downside risk with the earned premium.

• Put Option Strategy and Outcome: Metaplanet sold 223 bitcoin put options contracts, securing a 23.972 BTC premium ($1.44 million) with a strike price of $62,000 and a maturity date of December 27, 2024. If Bitcoin’s price drops below $62,000, Metaplanet must buy 223 BTC, increasing its overall holdings while using its $13.826 million collateral to fulfill the transaction.

• Strategic Positioning: This approach contrasts with Microstrategy's debt-based accumulation by leveraging options for yield generation and accumulation, resulting in a nominal yield of 10.75% and an annualized yield of 45.63%.

6)

AI Token Market Decline: 'UPtober' Fails to Deliver

The AI and big data cryptocurrency market saw a sharp decline in early October, shedding $4.69 billion in market capitalization over three days, dropping from $38.82 billion on September 30 to $34.13 billion by October 3. Despite historical trends that suggest October is a positive month for the market, the anticipated "UPtober" has not materialized, with tokens such as Near Protocol (NEAR), Bitensor (TAO), and Internet Computer (ICP) seeing price drops of 14.88%, 9.37%, and 13.35%, respectively. While the losses appear significant, the overall market cap is still up $13 billion from its July levels, suggesting that the downturn is relatively minor in the broader context. The broader crypto market has also faced challenges, influenced by geopolitical and macroeconomic factors, raising concerns about continued volatility in the near term.

• AI and Big Data Tokens Experience Sharp Decline: The market lost $4.69 billion in capitalization, with major tokens like NEAR, TAO, and ICP recording substantial losses, challenging the anticipated "UPtober" recovery.

• Long-Term Trends Remain Positive Despite Short-Term Losses: While recent declines seem impactful, the overall AI and big data token market is still significantly higher compared to its levels three months ago, up by over $13 billion since July.

7)

Australia's Operation Kraken: Major Crypto Seizure and Arrests

Australia's Federal Police (AFP) has seized $6.4 million in cryptocurrency as part of a global crackdown on Ghost, an encrypted messaging platform allegedly created for criminal use. The operation, codenamed "Operation Kraken," is not associated with the cryptocurrency exchange Kraken. The crackdown led to the arrest of Jay Je Yoon Jung, the alleged mastermind behind the app, along with 46 other arrests, 50 life-threatening incidents resolved, and the confiscation of illicit weapons and drugs. The seized crypto has been placed in secure AFP storage, and authorities are pursuing its permanent forfeiture.

• Key Details: Operation Kraken is a global crackdown targeting Ghost, a communication app allegedly built for criminal purposes, leading to the seizure of $6.4 million in crypto and multiple arrests.

• Results: The AFP arrested 46 individuals, seized 200 kg of illicit drugs, 30 illegal weapons, and resolved 50 life-threatening incidents as part of the operation.

8)

Cryptocurrency Market Overview: Recent Downturn and Key Industry Updates

The global cryptocurrency market has seen a significant downturn, losing $150 billion in value within two days as Bitcoin’s price dropped sharply towards $60,000. Bitcoin’s market cap has plummeted from over $1.3 trillion to just under $1.2 trillion, despite its dominance increasing to 54.5% as altcoins, including ETH, SOL, and XRP, suffered even larger losses. XRP, in particular, dropped 14% after the SEC’s unexpected decision to appeal a court ruling against Ripple. The current market turbulence is attributed to a combination of rising geopolitical tensions and large ETF outflows, prompting analysts to question the previously bullish October forecasts.

• Market Downturn: Bitcoin’s price fell from over $66,000 to around $60,000 in just a few days, resulting in a $150 billion loss in the total crypto market cap and a decreased Bitcoin market capitalization. Altcoins like Ethereum, Solana, and Chainlink have also seen drops between 5-7%, and smaller-cap alts experienced even steeper declines.

• Key Events and Impact: XRP’s 14% plunge was triggered by the SEC’s appeal against Ripple, adding to overall bearish sentiment. Rising geopolitical tensions and large ETF outflows are fueling selling pressure, making it unclear if October will turn bullish as historically expected.

9)

Q3 Cryptocurrency Security Report: $750 Million Stolen in 150+ Attacks

In Q3 2024, hackers stole over $750 million worth of cryptocurrency through more than 150 security incidents, representing a 9.5% increase in value lost despite fewer incidents compared to Q2. Phishing attacks and private key compromises were the leading attack vectors, contributing $343.1 million and $324.4 million in losses, respectively, while Ethereum emerged as the most targeted blockchain, with $387.9 million stolen in 86 incidents. The rise in theft underscores the urgent need for enhanced security measures and user education in the decentralized finance (DeFi) sector.

• Key Attack Vectors and Losses: Phishing attacks accounted for $343.1 million in losses across 65 incidents, while private key compromises resulted in $324.4 million stolen in 10 incidents, together making up $668 million of Q3’s total losses.

• Ethereum’s Vulnerability: Ethereum remained the primary target for hackers, with $387.9 million stolen in 86 incidents, significantly outpacing Bitcoin and highlighting the critical need for stronger security protocols on the network.

10)

Crypto Market and Regulatory Updates: Key Insights on Fraud and Market Trends

The Australian Federal Police recently recovered over $9.3 million in cryptocurrencies from a scam involving the Ghost application, a platform allegedly designed for criminal use, leading to the arrest of 32-year-old Jay Je Yoon Jung. This seizure follows a broader crackdown on crypto-related crimes, as the global market has seen over $1.2 billion lost to scams and hacks in 2024. Meanwhile, the broader cryptocurrency market experienced a downturn in response to geopolitical tensions, with Bitcoin trading at $61,134 and Ethereum at $2,341, both showing significant drops. Wormhole, Flare, and Sui led the intraday gainers' list, and the total crypto market capitalization declined to $2.13 trillion, reflecting a 3.10% drop in the past 48 hours.

• Law Enforcement Action: The Australian Federal Police seized $9.3 million in cryptocurrencies from a scam linked to the Ghost application, arresting Jay Je Yoon Jung for his involvement in developing the app allegedly used for criminal purposes.

• Market Decline and Gainers: Geopolitical tensions have driven a decline in major cryptocurrencies like Bitcoin and Ethereum, while Wormhole, Flare, and Sui emerged as top intraday gainers. The total crypto market capitalization dropped by 3.10% over the last 48 hours to $2.13 trillion.

That’s all for today folks, see you tomorrow. 👋

Disclaimer

The information provided in this overview is based on our data findings and opinions. It is intended for informational purposes only and should not be considered financial advice. Cryptocurrency investments carry significant risk, and it is important to conduct your own research and consult with a qualified financial advisor before making any investment decisions. We are not responsible for any financial losses or gains you may incur as a result of using this information.