Daily News | BTC Touched $64,000, ETH Returned to $3,400; The US Government Transferred 1 Billion BTCs from Seized Hacker Wallets for Unknown Purposes

2024-02-29, 06:45

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## Crypto Daily Digest: Bitcoin hit $64,000, ETF trading volume reached a new high; The US government transferred 1 billion BTCs from seized hacker wallets for unknown purposes

On February 29, the BTC price touched 64,000 USDT, then fell back to 59,000 USDT, to be currently fluctuating around 61,400 USDT, with a market share of 50.42% (data source: CoinGecko); ETH returned above 3,400 USDT, with a 24-hour increase of about 5%; Presently, Microstrategy is the listed company with the largest holdings of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> in the world, with a total holding of approximately 193,000 Bitcoin worth over $10 billion, which has led to an increase in its stock price.

In terms of Bitcoin ETF trading activities, according to Farsid Investors data, on February 28, GBTC outflow was approximately $216 million, ARK 21Shares Bitcoin spot ETF (ARKB) inflow was $23.8 million yesterday, and WisdomTree Bitcoin spot ETF (BTCW) net inflow was $2.2 million. Fidelity Bitcoin spot ETF (FBTC) had an inflow of $245 million yesterday.

Bloomberg ETF analyst James Seyfart posted on the X platform that Bitcoin spot ETF trading volume reached a historic high of $7.69 billion yesterday.

According to Arkham monitoring, the US government has engaged in unexplained on-chain actions. In the infamous Bitfinex hacking incident, the US government confiscated Bitcoin wallets. At least three wallets marked by Arkham represent the government's seizure of Bitfinex hacking funds, with one wallet initially transferred 1 BTC around 18:39 World Standard Time. About half an hour later, the remaining 2,817 BTCs in the wallet were sent out, leaving the wallet empty, meaning they sent approximately $173 million worth of Bitcoin.

Afterward, another wallet containing approximately 12,300 BTC transferred 0.01 BTC to another unidentified address, and soon after, the remaining BTC was also sent. Based on the current prices of major cryptocurrencies, these transfers are worth approximately $750 million, bringing the total value of Bitcoin transfers from two wallets to nearly $1 billion.

Presently, the purpose and motivation for this fund transfer are not known.

There is new progress in the bankruptcy case of Gemini, a crypto exchange. As part of the settlement protocol with the New York Department of Financial Services (NYDFS), Gemini will return at least $1.1 billion to customers who have suffered losses due to the failure of its loan plan, and pay $37 million in regulatory fines for unsafe and unsound practices.

Gemini Trust posted on the X platform stating that if approved by the bankruptcy court, all Gemini Earn users will receive 100% of their digital assets to be returned in physical form.

The Earn program was provided in collaboration with crypto lending institution Genesis Global Capital but was halted during the crypto market crash in November 2022. This chaos has led to Genesis filing for bankruptcy and widespread litigation between Genesis, Gemini, and its parent company.

## Market trends: Long short double explosion, crypto market sentiment welcomes FOMO
Last trading night, BTC prices soared to $64,000 but then quickly fell, with both long and short positions exceeding $700 million. Compared to the previous daily liquidation volume of $100-$200 million, this number clearly indicates that market sentiment is beginning to show signs of FOMO.
![](https://gimg2.gateimg.com/image/article/1709188957mlbCsT4cP4.jpg)
Source: Coinglass

The daily increase of BTC exceeds 10%, leading to a rapid increase in contract rates, and the overall market contract rates have reached a high point in a 21 year bull market. At the same time, the overall decline in US stocks has led the market to wait for the release of inflation data at 21:30 tonight, which may have a further impact on market sentiment.

### Market hotspots
1. BTC's bloodsucking market, with continuous inflow of spot ETFs: Recently, BTC prices surged, attracting over $600 million in capital inflows for several consecutive days. The BTC market share (BTCD) has also reached a new high of 55%. When BTCD will decline, it often indicates the arrival of the Altcoin market.
![](https://gimg2.gateimg.com/image/article/1709188879bFKgeUD0Bh.jpg)
Source: Bloomberg

2. The concept of AI continues to be hot: ARKM, AR, FET, WLD, and other related tokens have seen a significant increase, with ARKM breaking through $2.3 and reaching a historic high. Despite a sharp drop at night, ARKM's direct V-shaped rebound of 50% has established the leading position of the AI concept in this round. Last month, only the AI and Meme concepts have outperformed BTC's growth rate.

3. The Meme concept continues to be active: Meme concept tokens such as PEPE, WIF, and BONK continue to soar. The market is gradually beginning to pay attention to the potential passage opportunities of ETH ETFs, indicating that there may be more opportunities for the Meme concept on ETH.

4. SOL adjustment ends and restarts: The price adjustment of SOL ends and restarts the rise, which also drives the rise of BONK. BONK is the leader of Meme on the <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a> chain, while WIF ranks second.

The market trend shows that market sentiment is moving towards a FOMO state. At the same time, AI and Meme concepts continue to be active. Gate.io users should closely monitor the trends of these popular concepts and look for possible investment opportunities.

## Macro: Key US inflation data released today, the Fed stating that there is still a possibility of interest rate cuts later this year
Gold prices remained stable on Thursday. Traders are waiting for the Federal Reserve's preferred inflation indicator to be released later that day, which may provide new insights into when the Fed will start cutting interest rates. Spot gold remained stable at $2,035.78 per ounce. US futures rose 0.1% to $2,044.20.

In terms of commodities, the unexpected increase in US crude oil inventories has raised concerns about slowing demand, a decline in oil prices, and signs that US interest rates may remain high for a longer period of time have also added pressure. Brent crude oil futures fell 22 cents, or 0.3%, to $83.46 per barrel. West Texas Intermediate crude oil futures in the United States fell 30 cents, or 0.4%, to $78.24 per barrel.

Data released on Wednesday showed that due to strong consumer spending, the US economy grew steadily in the fourth quarter; John Williams, President of the Federal Reserve Bank of New York, stated that although there is still some way to go in achieving the Federal Reserve's 2% inflation target, interest rates may still be cut this year, depending on future data.

Boston Fed President Susan Collins has stated that the Federal Reserve may need to start cutting interest rates later this year, and at least seven other Fed officials will have talks on Thursday and Friday.

Unlike the expectation at the beginning of the year that the Federal Reserve would cut interest rates for the first time in March. This expectation has now been postponed to June.

Asian stock markets mainly weakened Thursday, while the US dollar and US Treasury bonds remained largely stable. The US will release key inflation data, which may provide new clues for when the Federal Reserve will cut interest rates. However, the Chinese stock market rebounded from Wednesday's sharp decline and is expected to achieve its best monthly performance since November 2022. Next week's annual meeting of the National People's Congress will set growth targets for this year and develop plans to achieve them, which will provide the clearest signs of government stimulus measures.

The Hong Kong Hang Seng Index (HSI) rose 0.44%, while the MSCI Minsheng Asia Pacific (excluding Japan) Index (. MIAPJ0000PUS) rose slightly by 0.06%.

Meanwhile, the yen rose as Bank of Japan officials hinted at the need to withdraw from ultra-loose monetary policy. Analysts and investors expect the Bank of Japan to withdraw from its negative interest rate policy in April, but there is also a possibility of taking action in March.

After all three major US stock indexes fell overnight, US stock index futures slightly declined. Standard&Poor's 500 index futures fell 0.04%, while Nasdaq index futures fell 0.06%. Investors remain cautious until the core personal consumption expenditure (PCE) price index is released later today.

Inflation data for Germany, France, and Spain will also be released on Thursday, and Eurozone inflation data will be released on Friday.

<div class="blog-details-info">
<div>Author:**Sherry S.**, 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.
</div>

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