24 Crypto Update, 05 Feb: Crypto Market Sees Slight Downturn

Crypto currency market grew by 0.4%, totaling $1.72 trillion

• BTC trading in a tight range for a week, maintaining an upward trend. Key levels: $42k downside, $44k upside.

• Bitcoin sales drop, strong US stocks, Fed meeting impact market. Grayscale decline and events shape market dynamics.

Major Events To Watch

Crypto Fear and Greed Index:

In the past 24 hours, the market witnessed increased buying activity, leading to a 4-point uptick in the "Fear and Greed Index." Currently hovering at 64 on a scale that spans from 0 to 100, the prevailing market sentiment suggests an optimistic outlook.

Latest Market Update: 

• #Bitcoin ($BTC), the world's oldest and most valuable cryptocurrency, experienced a drop below the $43,000 mark early on Tuesday.

• Other leading coins, including #Ethereum ($ETH), #Dogecoin ($DOGE), #Solana ($SOL), #Ripple ($XRP), and #Litecoin ($LTC), showed marginal gains and losses.

• The #Ethereum Name Service ($ENS) token emerged as the top performer, recording a 24-hour surge of over 13 percent.

• #Ronin ($RON), conversely, suffered the most significant loss, with a 24-hour dip exceeding 25 percent.

• The total crypto market volume in the last 24 hours stands at $42.55 billion, reflecting a notable increase of 20.88%.

• Within the crypto market, the DeFi sector contributes $4.18 billion to the total volume, constituting 9.82% of the 24-hour market volume.

• Stable coins play a dominant role, accounting for $39.28 billion in volume, representing 92.33% of the total crypto market volume in the last 24 hours.

• Bitcoin's dominance is presently at 51.14%, experiencing a slight decrease of 0.03% over the course of the day.

Major Worldwide News Update:

• Cathie Wood, Ark Invest, sees Bitcoin supplanting gold as a safe haven amid economic uncertainty. Wood notes Bitcoin's resilience during regional bank crises, highlighting its "flight to quality" role. Despite recent ETF-related price dip, Wood predicts Bitcoin's ongoing ascent, supported by its ease of access. Conversely, Bloomberg's Mike McGlone favors gold's performance in 2024, anticipating potential interest rate cuts to benefit gold over Bitcoin.

• Treasury Secretary Janet Yellen raises alarms on AI and digital assets, stressing enhanced oversight in finance. She calls for enforcing current rules and new laws for stablecoins and non-securities crypto. The US lags behind global regulatory efforts, caught in a loop of risk discussions with little concrete action.

• Weeks post-spot Bitcoin ETF launch, Grayscale's BTC holdings dropped from 619K to 478K. Analysts observe daily BTC sales of $150M, predicting potential depletion in 176 days if the trend persists. Blackrock and Fidelity absorb outflows, while Grayscale's CEO pushes for a spot Bitcoin ETF with listed options.

• Bloomberg analyst Eric Balchunas expresses optimism for all Bitcoin ETFs, suggesting that despite Blackrock and Fidelity's dominance, others have future potential. Balchunas dismisses skepticism, foreseeing survival and positive performance for all spot Bitcoin ETFs, signaling confidence in a forthcoming bullish trend.

• Trial underway: Craig Wright defends claim to be Bitcoin creator Satoshi Nakamoto against accusations of forgery and "terrorizing". COPA, backed by tech giants, alleges Wright created an "elaborate false narrative" with manipulated documents. Wright's team argues his expertise aligns with Nakamoto's and no one else claims the title. Crypto community closely watches for potential impact on Wright and Bitcoin itself.

• Crypto exec David Schwartz bragged about being unphishable, but user Cory Doctorow lost $8k in a phone scam. Schwartz downplays the scam's complexity, but experts warn hackers use dynamic tactics. Others like Blockworks founder & Ripple CEO also faced hacks, highlighting the evolving threat. Stay vigilant online, no one's truly safe.

• New AI-powered service, OnlyFake, creates fake IDs that pass KYC checks on crypto exchanges for $15. This raises concerns about potential misuse by scammers for illegal activities. While the site claims its purpose is for entertainment, users share success stories on bypassing verification at major exchanges. The ease of generation and customization adds to the worry.

COIN GABBAR Views:Is BTC struggling to surpass $43.5K with bears targeting $40K? Could the halving propel BTC beyond 100K? Is Bitcoin's price targeting higher levels, deciphering obstacles to a new surge? To get latest news Stay tuned us at coingabbar

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Also Read: Crypto Daily Roundup, 05 Feb: Crypto market locked in range