Crypto: Spain Suspends WLD; Binance Halts Withdrawals in SOL and Faces Crisis in the US, and More News

Bitcoin partially recovers on Wednesday after market volatility

Bitcoin (COIN:BTCUSD) reached a new all-time high by briefly surpassing $69,000 on Coinbase, repeating the feat of November 10, 2021. However, the excitement was short-lived, with a subsequent correction to $60,800 and over $1 billion liquidated due to market volatility. Nevertheless, Bitcoin showed resilience, bouncing back to $66,8930 on Wednesday, up 4.95% in the last 24 hours. Analysts suggest that the drop was influenced by profit-taking and sales by miners.

Fernando Pereira, from Bitget, points out that with the current market capitalization, a significant amount of new investments would be needed for a similar rise as before, comparing the investment requirement to the total market value of silver, the second most valuable commodity in the world. “Although in the past, some situations of strong increases after breaking ATH have occurred, this time the scenario is very different because we have a market capitalization approximately 4 times higher than the last time we saw this movement. This means that 4 times more money would be needed. It can happen, but hardly in a few days. Giving an example, for BTC to double its price today, it is necessary that all the money in the world invested in SILVER be exchanged for BTC.”

Bitcoin and silver are ranked eighth and ninth in market value, with $1.363 trillion and $1.329 trillion respectively, followed by Alphabet Inc (NASDAQ:GOOGL) with $1.662 trillion. Although silver is the second most valued commodity after gold, Bitcoin’s rise challenges its position.

Bitcoin ETFs attract $648 million in a day, BlackRock IBIT sets records

On March 5, BitMEX recorded a notable volume of $648 million in investments in US Bitcoin ETFs, corresponding to about 10,238 BTC, the third largest day of inflows. The highlight was BlackRock’s ETF (NASDAQ:IBIT), which added 12,447 BTC to its reserves, with a record $788 million invested totaling $9.2 billion or 183,000 BTC in assets. Fidelity’s ETF (AMEX:FBTC) also saw significant inflows of $126 million, while Grayscale’s ETF (AMEX:GBTC) experienced an outflow of $333 million, despite an overall trend of improvement. Total net inflows for all Bitcoin ETFs amount to an impressive $8.6 billion, equivalent to 162,868 BTC.

Ethereum paves the way for efficiency with Dencun upgrade

Next week, Ethereum will undergo a significant transformation with the implementation of Dencun, an upgrade that promises to usher in a new era of efficiency for second-layer scalability solutions. With the introduction of EIP-4844, known as “proto-danksharding,” the upgrade will reduce data storage costs in rollups, thanks to the new “blobs” structure. This technical advancement is expected to decrease fees for users, although the exact extent of the reduction remains uncertain. Leaders of major layer 2 projects such as Polygon, Arbitrum, StarkWare, and Coinbase Base have expressed cautious optimism, highlighting the complexity of predicting changes in transaction fees. The Dencun upgrade is seen as a fundamental step toward a more scalable, efficient, and accessible Ethereum.

Vitalik Buterin sells ETH but analysts maintain positive view for Ethereum

Vitalik Buterin, founder of Ethereum (COIN:ETHUSD), made a significant sale of his ETH, moving about 30 ETH and converting some of them into 100,000 USDC, as reported by PeckShield. This activity has sparked debates about potential impacts on the value of Ethereum. However, cryptocurrency analysts remain optimistic, predicting a substantial increase in the price of Ethereum. Projections range from $10,000 to $15,000, with indicators suggesting a potential bottom in the ETH/BTC ratio, indicating an accumulation phase and possible sharp increase.

Spain orders Worldcoin shutdown over privacy concerns

The Spanish Data Protection Agency imposed a three-month suspension on Worldcoin (COIN:WLDUSD), banning the collection and use of personal data in the country in response to several complaints. The measure issued on Wednesday aims to protect the sensitivity of biometric data and the right to privacy, reflecting global concerns about the project’s privacy practices, despite attracting over 4 million people.

Celebrity token frenzy drives meme coin market

This week, the meme coin market witnessed a wave of tokens inspired by political figures and celebrities, with those issued on the Solana blockchain standing out. The BODEN token, inspired by President Joe Biden, saw an impressive increase of 830% in just six hours. Despite the attractiveness of these digital assets, they carry high risks of scams. Despite the risks associated with these volatile investments, the fever for meme coins continues, with dogwifhat leading the way with a gain of 48%.

SEC action triggers crisis at Binance.US with layoffs and revenue drop

Following the SEC action in June, Binance.US faced a severe crisis, cutting two-thirds of its staff due to a 75% drop in revenue, revealed a court document. The platform also saw approximately $1 billion in assets leave, loss of banking partnerships, and challenges in restoring customer confidence. Binance.US COO Christopher Blodgett reported in testimony the collapse of business and trading volumes, although he denied any wrongdoing.

DCG and CEO seek to dismiss legal action in New York

Digital Currency Group (DCG) and its CEO, Barry Silbert, are challenging a legal action filed by New York Attorney General Letitia James related to the collapse of Genesis Global Capital. They have sought dismissal of the accusation that implicates them in concealing financial losses, claiming the allegations are unfounded. The lawsuit accuses DCG and other entities of defrauding investors of $3 billion, linking them to the dismantling of companies like Three Arrows Capital and FTX. DCG defends its financial transparency and significant contributions to Genesis after the losses.

Binance halts Solana withdrawals due to transaction surges

In response to a spike in activity on the Solana network (COIN:SOLUSD), Binance decided to temporarily pause SOL withdrawals since March 4, 2024, sparking debates about implications for Solana’s value. This measure aims to improve the platform’s performance and is scheduled to end on March 9, 2024. Crypto experts are divided on the impact of this pause on prices, with some predicting rapid recoveries and others advising caution. The situation highlights the connection between network functionality and investor confidence in the cryptocurrency market.

Flashloan attack causes WOOFi assets to drop by 20%

WOOFi, a decentralized exchange, saw the value of its assets drop by 20% to $45 million after suffering a flashloan attack. The hacker manipulated the platform’s algorithm to drastically alter the price of the WOO token, resulting in losses of $8.75 million. Despite the quick detection and suspension of swaps, WOOFi offered a 10% reward to the hacker if they choose to act as a “white hat” and return the stolen funds.

Bitstamp advances in Singapore with preliminary regulatory approval from MAS

Bitstamp, an influential European cryptocurrency exchange, achieved a milestone by receiving initial approval from the Monetary Authority of Singapore (MAS) to operate in the city-state. With the imminent Major Payment Institution (MPI) license, Bitstamp will expand its digital payment token services in Singapore, positioning itself as the first major EU cryptocurrency platform to achieve such recognition in the region. Bitstamp’s focus in Singapore will be on financial institutions and intermediaries.

UK consults on OECD standards for crypto

The UK has initiated a public consultation on adopting the cryptocurrency reporting framework proposed by the OECD, coinciding with its spring budget. The Treasury anticipates that this measure could generate significant revenue in the coming years, aligning with international efforts to improve tax transparency and combat tax evasion in cryptocurrency transactions. Implementation is scheduled for 2026, following the conclusion of the consultation on May 29.

DMG blockchain records extraction of 49.3 Bitcoins in February and awaits delivery of new miners

DMG Blockchain Solutions Inc. (TSXV:DMGI), a vertically integrated blockchain technology and data center company, revealed its mining results for February 2024, highlighting the extraction of 49.3 bitcoins and a hash rate of 1.0 EH/s. With a total of 454 bitcoins by the end of the month, the company also anticipates the arrival of the first installment of an order of 4,550 Bitmain T21 miners in March 2024.

Magic Square invests $66 million in Web3 projects

Magic Square, a Web3 application platform, announced the allocation of $66 million in its SQR token (COIN:SQRUSD) to support projects in its store. This initiative, representing 12% of the total SQR tokens, aims to cover marketing costs to increase visibility and engagement of selected applications and games. Currently, Magic Square has over 1,100 applications, games, and 3.6 million wallets, backed by renowned investors such as Binance Labs and Crypto.com Capital.

ZettaBlock announces integration with Sui in open Beta launch

At the Open Beta launch, ZettaBlock, an advanced Web3 data platform, will integrate Sui, a high-speed, scalable layer 1 blockchain, among 12 other networks. This collaboration provides developers access to a wide range of high-quality data from over 500 Web3 datasets. ZettaBlock, which started in 2022, provides a unified solution for on-chain and off-chain data, simplifying the development process for builders with its comprehensive API library. The inclusion of Sui highlights its growing role in the DeFi ecosystem and the importance of interoperability in advancing Web3 technology.