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Bullish Insights Weekly Market Recap

Feb 23, 2024 4 min read

Bullish exchange

This week’s peak spot exchange trade volume (24h): $849,131,480 on February 2, 2024.

This week’s headlines

  • South Korea's ruling People Power Party is considering postponing the start of crypto investment gains tax to 2027 as part of their campaign for the upcoming general election, prioritizing the establishment of a basic crypto regulatory framework, which includes new rules for crypto custody and token listings, over immediate taxation. This potential delay, extending from the previously adjusted date of January 2025, underscores the party's approach to ensure a solid regulatory foundation is in place before introducing such taxes.
  • ARK Invest, has sold approximately 499,149 shares of Coinbase Global (COIN) valued at about $90 million across three of its ETFs – ARK Innovation, ARK Next Generation Internet, and ARK Fintech Innovation – even as the cryptocurrency exchange experienced analyst upgrades following solid Q4 earnings report.
  • Worldcoin (WLD) token, co-founded by OpenAI CEO Sam Altman, soared over 140% in the past week, coinciding with the milestone of surpassing 1 million daily users. On February 18, Worldcoin revealed that their "World App" crypto wallet application witnessed a tenfold surge in daily active users, jumping from 100,000 in November of the previous year to now over 1 million.
  • Japan is set to bolster its domestic investments in Web3 start-ups by enabling limited partnership firms to own and invest in cryptocurrency assets. The change aims to permit these partnerships to channel funds into medium-sized enterprises and emerging companies in the crypto space, thereby potentially increasing the number of crypto and blockchain startups in Japan.
  • BitRiver, is expanding its operations with the construction of a new 100MW data center designed for high-powered computing in Eastern Siberia. The project, undertaken by its subsidiary BitRiver-B, is set to focus primarily on crypto mining and with an investment exceeding $15.15 million, it is expected to commence operations in the latter half of 2024. Located in the mountainous region of Buryatia, near the Mongolian border, the facility is anticipated to be the largest data center in both the Republic of Buryatia and the Far Eastern Federal District.
  • Circle has announced a gradual cessation of USDC support on the TRON blockchain, halting new minting effective immediately and facilitating the transfer of existing USDC to alternative blockchains for Circle Mint business and institutional clients until February 2025.
  • Do Kwon, co-founder of Terraform Labs, is set to be extradited to the United States to face charges of fraud related to substantial losses suffered by U.S. investors due to a failure of an algorithmic stablecoin. This decision by the High Court in Montenegro overrides South Korea's extradition request and follows Kwon's earlier agreement to be sent back to South Korea after his arrest in Montenegro in March 2023. After being convicted of document forgery and losing an appeal, Kwon was sentenced to four months in prison by a Montenegro court.

Equity markets

  • Headwinds on sticky inflation data, driven by higher than expected producer price index (PPI) figures dampened US equity markets in Friday’s session. PPI climbed 0.3% from the previous month and 0.9% year-over-year. The Nasdaq Composite dropped by 0.8%, the S&P 500 decreased by 0.5%, and the Dow Jones Industrial Average declined by 0.4%.
  • Markets closed for US public holiday on Monday.
  • US equity markets closed in the red in Tuesday's session ahead of chipmaker Nvidia Corp's earnings results. The S&P 500 fell 0.6%, the Dow industrials dipped by 0.2%, and the Nasdaq Composite retreated 0.9%.
  • US equity markets closed on a mixed note in Wednesday's session, poised for an expected rebound on Thursday's open after Nvidia Corp posted solid results, tripling quarterly sales from a year ago. The S&P 500 climbed 0.1%, the Dow industrials was up by 0.1%, and the Nasdaq Composite retreated 0.3%.

Crypto market highlights

  • The total Bitcoin ETF flows since launch has now reached $4.82bn with the past week seeing $2.6bn in inflows. Grayscale has been continual outflows with its AUM marketshare dipping to 63.4% while BlackRock and Fidelity have been seeing steady inflows with increasing market share at 16.1% and 11.7% respectively.
  • Last week, digital asset investment products saw a round of major inflows at $2.45bn. Bitcoin saw majority of inflows of $2.42bn, Ethereum saw inflows of $21.1mn and short bitcoin saw inflows of $5.8mn. Other alts like Litecoin and Ripple saw inflows of $0.6mn, $0.4mn while Solana saw outflows of $1.6mn. By region, the United States and Switzerland saw the bulk of inflows at $2.4bn and $16.7mn respectively. Sweden and Canada saw the largest outflows by region of $26.3mn and $0.1mn respectively.
  • Currently, long-term holders (LTH) of Bitcoin are experiencing a decrease in their supply held at a loss, which stands at 777.8k BTC. At present, only 6.5% of the total LTH Bitcoin supply is underwater.

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