Bitwise CIO Matt Hougan forecasts Ethereum to surpass $5,000 after spot Ether ETFs launch. He cites three key factors: Ethereum's slowed supply growth due to its burn feature, fewer sellers as stakers replace miners, and 28% of ETH supply locked in staking. Hougan expects $15 billion inflow to Ethereum ETFs in the first 18 months. Bitcoin is trading at $65,000, up 3%, while Ethereum is at $3,476, up 1.8%.
US Treasury Secretary Janet Yellen's computer was hacked by Chinese state-sponsored hackers, with fewer than 50 unclassified files accessed. The breach, part of a larger espionage campaign, also affected two deputy secretaries and targeted the Treasury's unclassified systems, focusing on its role in sanctions, intelligence, and international affairs. Over 400 devices and more than 3,000 files across unclassified personal devices were compromised in the attack.
Phantom Wallet has successfully raised $150 million in a Series C funding round at a valuation of $3 billion, led by Sequoia Capital and Paradigm. The funding round also included significant contributions from a16z and Variant. Phantom's CEO highlighted the wallet's growing popularity as a sign of shifting user preference towards self-custody crypto platforms over centralized exchanges like Coinbase. The company also reported having 15 million monthly active users and $25 billion in self-custody assets. Phantom aims to use these funds to expand its influence and foster greater crypto adoption globally.
Phantom Wallet successfully raised $150 million in a Series C funding round led by Sequoia Capital and Paradigm, reaching a valuation of $3 billion. The round also included notable investors a16z and Variant. Phantom attributes its success to a growing preference for crypto transactions through digital wallets over traditional exchanges like Coinbase. The company reported 15 million monthly active users and $25 billion in self-custody assets. Phantom Wallet aims to expand crypto adoption and become the leading consumer finance platform, bolstered by its dominance as a Solana-based wallet.
Wyoming Senator Cynthia Lummis has inquired the US Marshals Service about the US government's intent to sell 69,370 Bitcoin seized from the Silk Road, arguing that it contradicts the plans for a national Bitcoin stockpile. The letter, prompted by Judge Richard Seeborg's denial of a petition to block the asset forfeiture, raises concerns about the timing during a presidential transition and its misalignment with strategic reserve policies.
Investors are anticipating potential disruptions in both crypto and traditional markets due to a likely interest rate hike by the Bank of Japan (BoJ) on January 24. Historical precedents suggest that a BoJ rate hike could lead to significant market sell-offs, similar to the effects seen in August when bitcoin fell to $49,000. The market currently anticipates a 90% probability of this increase, amidst concerns of high inflation in Japan, which could further influence market dynamics.
Swiss state-owned bank PostFinance AG has introduced Ethereum staking to its digital-asset offerings, allowing holders to earn passive income. The bank announced plans to add staking for other tokens soon and highlighted its status as the first systemically important bank to offer staking services. This development reflects growing enthusiasm for crypto in Switzerland, influenced by surging asset prices and political changes in the US.
Pyth Network has launched Lazer, a new oracle service offering ultra-low-latency price feeds specifically designed for latency-sensitive crypto trading apps and exchanges. Lazer operates with customizable frequency channels that can refresh as quickly as one millisecond, potentially enhancing DeFi protocols' performance against centralized exchanges. The service supports up to 20 simultaneous price feeds on Solana and is compatible with multiple blockchain environments including EVM and SVM. Lazer differentiates itself by sourcing data directly from first-party publishers rather than third-party providers.
A Litecoin exchange-traded fund (ETF) by Canary Capital is likely the next spot crypto ETF to gain approval in the US following an amended S-1 form submission to the Securities and Exchange Commission. Bloomberg's Senior ETF Analyst, Eric Balchunas, highlighted that the SEC's engagement with the filing and changes in SEC leadership could influence this outcome. The exact impact of the newly appointed, crypto-friendly SEC chair Paul Atkins remains uncertain as his confirmation timing is unclear.
A new bill has been introduced in the Oklahoma House of Representatives by state Representative Cody Maynard that would allow state pension funds and savings accounts to invest in Bitcoin as a hedge against inflation. Dubbed the Strategic Bitcoin Reserve Act, the bill highlights Bitcoin's role as a decentralized, non-governmental store of value, positioned to protect financial assets in an increasingly adopted institutional landscape. This move aligns with similar legislative initiatives in several US states aiming to leverage Bitcoin to safeguard state finances.
Bitcoin derivatives exchange BitMEX has been fined an additional $100 million for violations of the Bank Secrecy Act. US District Judge John G. Koeltl deemed the previously agreed $110 million fine and corporate guilty pleas by BitMEX as insufficient, following the firm's failure to implement an adequate anti-money laundering program and illicitly allowing U.S. users on its platform. BitMEX's parent company, HDR Global Trading Inc., will also undergo a two-year probationary period.
Bitget CEO Gracy Chen forecasts that tokens associated with AI agents could achieve a market capitalization of up to $60 billion by 2025. Initially, these tokens will be employed in crypto transactions and to enhance exchange operations. Despite the rapid growth, with a market cap reaching $15 billion recently, Chen advises cautious investment in tokens offering practical solutions. AI tokens are poised to significantly influence Web3, transforming cryptocurrency trading and operations within decentralized communities.
The US Consumer Price Index (CPI-U) rose by 0.4% in December on a seasonally adjusted basis, marking an overall increase of 2.9% over the past 12 months. This rise was significantly influenced by a 2.6% increase in the energy index and consistent price increases in the food sector. Notably, the core inflation rate, which excludes food and energy, reported a 3.2% increase over the year.
The Malaysian government, led by Prime Minister Datuk Seri Anwar Ibrahim, is exploring the creation of a crypto regulatory framework following discussions with Abu Dhabi leadership and Changpeng 'CZ' Zhao, the founder of Binance. The initiative seeks to modernize Malaysia's financial system and align with global financial trends, potentially opening the country to more crypto-friendly regulations. The collaboration between Malaysian policymakers and the UAE might lead to comprehensive studies involving key financial authorities to address associated concerns and opportunities.
Tether, a stablecoin issuer, has filed a lawsuit against Swan Bitcoin, alleging significant breaches of their joint venture agreement. The dispute stems from a 2022 partnership to establish 2040 Energy, a Bitcoin mining venture. Tether claims to have acted in good faith and accuses Swan of reckless actions that compromised the venture, leading to legal proceedings in the High Court of England and Wales. This lawsuit escalates ongoing tensions following accusations against Swan employees of theft and a subsequent hostile takeover involving a competing firm, Proton Management.
Osprey Funds announced plans to file a Form S-1 registration statement with the US Securities and Exchange Commission to convert its Osprey Bitcoin Trust into an ETF. This move follows the termination of a prior acquisition deal with Bitwise, and amid growing activity in the ETF sector, as exemplified by SEC approvals for other Bitcoin and Ether index ETFs. Osprey's decision was driven by the competitive landscape and a recent spike in its unit value, despite prior challenges.
