Daily News | BTC Spot ETFs Saw Net Inflows for 2 Consecutive Days; Grayscale and Celsius Transferring BTC and ETH to CEXs; Musk Removed X's Homepage Profile, TROLL Plummeting by Over 50%

2024-01-31, 04:09

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## Crypto Daily Digest: Hong Kong-compliant exchanges are required to provide at least 50% insurance, TROLL has plummeted by over 50% in response
Firstly, let's focus on the progress in regulatory aspects. According to Cryptoolitan, the Securities and Futures Commission (SFC) of Hong Kong has mandated that licensed virtual asset exchanges must provide at least 50% insurance on customer assets to ensure the safety of investor funds. This move aims to strengthen the virtual asset market and protect users from potential security vulnerabilities or bankruptcy risks. According to reports, licensed exchanges such as OSL Exchange and HashKey Exchange have taken measures to provide insurance coverage beyond requirements, enhancing investor confidence in the crypto market.

On January 30th, according to Yujin Monitoring, based on the inflow/outflow of BTC spot ETF funds on January 29th, it is expected that after the opening of the US stock market today, there will be a transfer of approximately 14,800 BTC (approximately $638.8 million) to various ETF custody addresses, of which approximately 4,441 BTC will <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> out of the Grayscale GBTC custody address; The remaining nine ETF custody addresses will flow into approximately 10,359 BTC; The overall net inflow is approximately 5,918 BTC. <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> spot ETFs have seen net inflows for two consecutive days.

On January 30th, according to Arkham data, the Grayscale holding address transferred 6,227 bitcoins to Coinbase Prime and two other addresses 20 minutes ago. 4,418.63 bitcoins were transferred to Coinbase Prime and 1,808.96 bitcoins were transferred to the other two addresses.

Around 7 am on January 31st, Celsius received 25266 BTCs worth $1.1 billion from FalconX at the address starting with bc1qy. The receiving address was labeled "Lending" by Arkham. In addition, according to on-chain analyst @ai_9684xtpa monitoring shows that around 5am this morning, Celsius recharged 39,968 ETHs worth $94.91 million to the Coinbase Prime address; Currently holding 50,219 ETHs.

On January 31st, Musk deleted his previously edited "(CTO) Chief Troll Officer" X platform profile content. According to CoinGecko data, TROLL experienced a 24-hour decline of over 55% and is now quoted at $0.0000001861.

Latest progress on <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> Denchun upgrade: On January 31st, the Denchun upgrade on the Ethereum Sepolia testnet will be conducted at 06:51 Beijing time on February 2nd and completed at 07:10 on February 2nd.

Sepolia is the second of three testnets simulated by Denchun. Earlier this month, Denchun was launched on the Goerli testnet, but it was not initially finalized.

On February 7th, Denchun will be launched on its final Ethereum testnet, Holesky. Afterward, developers will sign the activation date for Denchun on the main blockchain. The testnet replicates the main blockchain and allows developers to make any changes to the protocol or its decentralized applications in a low-risk environment.

According to previous news, if everything goes according to plan, Denchun will be scheduled to launch the mainnet of Ethereum by the end of February or early March. Denchun was initially expected to perform in the last quarter of 2023, which will be the largest upgrade on Ethereum since the Shapella upgrade in March last year. This upgrade includes multiple changes, most notably the introduction of temporary data blobs (also known as "protodanksharding") for EIP-4844, which will help reduce L2 transaction costs.

Regarding Ethereum spot ETFs, Geoffrey Kendrick, the head of foreign exchange at Standard Chartered Bank, recently stated that the SEC may approve Ethereum spot ETFs on May 23, which is the final deadline for the first batch of Ethereum spot ETFs to be approved.

The main reason Kendrick made the above judgment is that the SEC did not classify Ethereum as a security in its legal lawsuit against crypto companies, and the listing of ETH as a regulated futures contract on the Chicago Mercantile Exchange increased this expectation.

Kendrick also stated that Grayscale owns an ETH trust and hopes to convert it into an ETF, so the rejection of the ETF application may lead to Grayscale appealing again.

The positive news for the Ethereum ecosystem has been coming one after another. According to official sources, the Ethereum Layer 2 network Metis has published community test results on the X platform. As of January 28th, the testnet has more than 115,000 contributors, over 3 million transactions, and has undergone over 600 sequencing rotations. The current total points of the testnet have exceeded 300 million, and the second season of community testing will start on February 5th.

Meanwhile, transactions on the <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> blockchain are becoming increasingly active, and according to data from The Block, the transaction volume on the Solana blockchain reached a new year high this month. The transaction volume of SOL and SPL tokens on the Solana blockchain has surged to $951.9 billion, and the economic throughput of the network has increased by 30% from $735.8 billion in December. In addition, the growth of Solana blockchain trading activity is significantly higher than the levels of most of 2023 and 2022.

## Macro: Job vacancy data below expectations, focus on the Federal Reserve's "2024 debut"
On Tuesday, the US dollar index fluctuated and fell. During the day, it briefly turned higher due to strong employment data, but then returned to its downward trend and ultimately closed down 0.072% at 103.4; The 10-year US Treasury yield also rose in the short term during the US market period, but continued to decline in the end of the day, breaking the intraday low and ultimately closing at 4.035%; The two-year US Treasury yield, which is more sensitive to the Federal Reserve's policy interest rates, barely closed higher at 4.339%.

Supported by the weakening of the US dollar and US Treasury yields, spot gold briefly hit its highest level since January 16th, but erased most of the gains after job vacancy data was released, ultimately closing up 0.19% at $2036.78 per ounce. Spot silver ultimately closed down 0.19% at $23.16 per ounce.

Due to the IMF's upward adjustment of this year's global economic growth forecast boosting demand prospects, international crude oil has turned from decline to rise, and the market is still waiting for how the United States will respond to the deadly drone attacks on its military in the Middle East. WTI crude oil rose 1.04% to close at $77.68 per barrel; Brent crude oil rose 0.55% to close at $82.86 per barrel.

The three major US stock indexes have mixed gains and losses, with the Dow Jones Industrial Average up 0.34%, the Nasdaq down 0.76%, and the S&P 500 index slightly down.

Earlier, the latest released job vacancy data for JOLTs in the United States for December was higher than expected at 8.75 million, rising to 9.026 million, a three-month high. The swap market reduces the probability of the Federal Reserve cutting interest rates in March to about 40%.

Currently, inflation seems to be rapidly returning to the Federal Reserve's target of 2%, although hard economic activity indicators indicate that the economy is developing healthily, regional Fed surveys indicate economic weakness. As the risks of insufficient and excessive tightening become more balanced, and more key data is coming out, policymakers may maintain interest rates unchanged at this week's policy meeting and explain the standards for future rate cuts.

Bloomberg Economics economists Anna Wong and Stuart Paul predict that the Federal Reserve will start cutting interest rates in March. If this is indeed the case, Federal Reserve Chairman Powell may send a signal when delivering Humphrey Hawkins’ testimony to Congress at the end of February or early March. At that time, the FOMC should have enough data to make a decision, and we are waiting for the upcoming Federal Reserve's "2024 debut."

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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