This article is brought to you thanks to the kind support of Betpanda.io. Experience the thrill and benefits of Betpanda.io with a 100% deposit bonus up to 1 BTC and a 10% weekly cashback!Crypto Market UpdateTable of ContentsMarket Updates and InfluencesBitcoin's Multi-Factorial Price DropMt. Gox's Progress on Repaying CreditorsFTX's Fallout Impacts Crypto LandscapeCelsius's Large-Scale Ethereum TransactionsCrypto Exchange and Platform DevelopmentsOKX Token's Dramatic Market ShiftSEC's Security Breach Affects Crypto ETFsPolymer Labs' Significant Series A FundingTaurus Gains FINMA Approval for Tokenized SecuritiesSocket's ETH Recovery Post-ExploitSecurity and Regulatory UpdatesRising Phishing Attacks in Crypto ProjectsNew macOS Exploit Targets Crypto WalletsTrueUSD's Market Struggles Amidst VolatilityEigenLayer's Innovative Shared Security ModelCosmos Community Rejects Proposal 868JPMorgan's Coinbase Outlook for 2024Sotheby's Successful Bitcoin Ordinals AuctionPudgy Milady NFT Collection's Expansion Bitcoin's Multi-Factorial Price DropBitcoin's fall below $39,000 before a slight recovery is driven by multiple factors. Grayscale's GBTC saw over $640 million in outflows, the largest yet, totaling $3.45 billion. The spot Bitcoin ETFs' approval led to a 'sell the news' event, with GBTC experiencing significant outflows. Short-term holder profits have sharply declined, increasing the risk of further corrections with critical support at $38,000 and $36,000. Whale activity, including a $3 billion sell-off, hints at a potential further drop. Despite China's $278 billion market stimulus, Bitcoin remains unaffected, indicating its price movements are more influenced by crypto-specific developments rather than external economic factors.Mt. Gox's Progress on Repaying CreditorsMt. Gox, once a leading crypto exchange, is progressing in repaying creditors from its 2014 hack. The trustee is verifying identities for disbursing 142,000 BTC, 143,000 BCH, and 69 billion yen by October 2024. This follows the loss of 850,000 BTC, impacting Bitcoin's supply dynamics amidst market shifts and the upcoming Bitcoin halving. Confirmation emails are being sent to creditors.FTX's Fallout Impacts Crypto LandscapeFTX's bankruptcy led to a $1 billion liquidation of its Grayscale Bitcoin Trust (GBTC) shares, erasing its stake. GBTC's balance dropped by 12%, losing about $3.5 billion in seven days. Market turbulence intensified with FTX's legal woes and the shift of GBTC outflows partly into USD, impacting the broader crypto landscape. Meanwhile, FTX faces increased claim prices ahead of an estimation hearing. Creditors seek "in-kind" cryptocurrency repayments based on token numbers, not market prices. Over $3 million in FTX claims have surged by 80%. Celsius's Large-Scale Ethereum TransactionsCelsius, amid bankruptcy, transferred 13,000 ETH to Coinbase and 2,200 ETH to FalconX, and sold over $125 million in Ethereum, holding a $1.3 billion reserve. Concurrently, an Ethereum whale moved $46.02 million in ETH across exchanges and staked with Lido. These actions led to a drop to $2,200 in ETH value and $53.78 million in liquidations, reflecting market volatility.OKX Token's Dramatic Market ShiftOKX exchange's OKB token experienced a 48% flash crash, leading to a $6.5 billion loss in diluted market capitalization before swiftly recovering. OKX will compensate users for abnormal liquidation losses, with a specific plan to be launched within 72 hours. Crypto markets saw significant swings, partly due to Grayscale Bitcoin Trust's sale of BTC to meet investor redemption demands. SEC's Security Breach Affects Crypto ETFsThe U.S. Securities and Exchange Commission (SEC) faced a security breach when a hacker executed a "SIM swap" attack on the agency's cell phone, leading to false tweets about the approval of spot bitcoin ETFs. The SEC had deactivated its multi-factor authentication, and the incident is under investigation by law enforcement and oversight agencies. Polymer Labs' Significant Series A FundingPolymer Labs secures $23M in Series A funding led by Blockchain Capital, Maven 11, and Distributed Global. Notable investors include Coinbase Ventures, Placeholder, and Digital Currency Group. The company aims to address Ethereum interoperability challenges with its layer 2 network utilizing Inter-Blockchain Communication. This funding will advance the development of their Ethereum-based interoperability hub. Taurus Gains FINMA Approval for Tokenized SecuritiesSwiss fintech firm Taurus, backed by Deutsche Bank, has obtained approval from Switzerland's Financial Market Supervisory Authority (FINMA) to offer tokenized securities to retail clients. Taurus' TDX trading marketplace will allow both institutional and retail users to access tokenized assets. The firm has also attracted several new issuers to trade their digital securities on TDX. Socket's ETH Recovery Post-ExploitSocket recovers 1,032 ETH worth $2.3 million after exploit. Bungee bridge protocol exploit led to an estimated $3.3 million in damages. The exploit involved incomplete user input validation, allowing theft via over-approvals. Over $3.3 million was stolen, but Socket's recovery demonstrates potential mitigation. Security improvements in crypto protocols show promise for the future. FUND RECOVERY UPDATEWe have successfully recovered 1032 ETH from the funds involved in the incident on 16th Jan.We will release a recovery & distribution plan for users soon.Big shoutout to everyone who helped us from Seal911, Slowmist, Hexagate, & others:@samczsun…— Socket (@SocketDotTech) January 23, 2024 Rising Phishing Attacks in Crypto ProjectsMultiple crypto projects including Token Terminal, De.Fi, and WalletConnect have reported phishing attacks. Users are advised to avoid interacting with suspicious emails promising airdrops. The fraudulent emails direct recipients to link their wallets, leading to theft. The attacks seem to have targeted project email domains, raising concerns about potential impact on other projects. We've detected a sophisticated phishing attack impersonating @WalletConnect via a fake email linking to a malicious dapp.Blockaid enabled wallets are safe.https://t.co/quz9olGrpZ pic.twitter.com/TYS0BjIk2J— Blockaid (@blockaid_) January 23, 2024 New macOS Exploit Targets Crypto WalletsKaspersky warns of a new macOS exploit targeting Bitcoin and Exodus wallets. The malware uses DNS records to deliver its malicious Python script and replaces authentic wallet applications with infected versions to steal cryptocurrencies. Users are advised to update their operating system, use anti-malware software, and download apps only from official stores. TrueUSD's Market Struggles Amidst VolatilityTrueUSD (TUSD) fell further below $1 amidst market volatility, prompting liquidation to USDT. Issues include community mining and low liquidity on Uniswap. Challenges include ownership controversies and supply decline. Meanwhile, FDUSD grew $800M in 2024, reaching $2.65B market cap, benefiting from Binance's support and setbacks of other stablecoins. EigenLayer's Innovative Shared Security ModelEigenLayer implements a shared security model, pooling over $1.7 billion in staked ETH to economically protect protocols. It allows ETH stakers to opt into additional slashing risk for securing Ethereum ecosystem services, earning yields. The project closed a $50 million Series A funding round and aims to enable other projects to launch using the shared security mechanism. Cosmos Community Rejects Proposal 868The Cosmos Hub community rejected Proposal 868 to reduce the minimum ATOM inflation rate from 7% to 0% if two-thirds of the supply was bonded. Notable validators like Everstake and Cosmostation opposed the proposal, raising concerns about security implications. Proposal 868 aimed to address inflationary pressures on the ATOM token. JPMorgan's Coinbase Outlook for 2024JPMorgan downgraded Coinbase to neutral, citing potential disappointment in 2024 due to the impact of spot bitcoin ETFs' approval. With Bitcoin's price already under pressure, JPMorgan anticipates a deflation in cryptocurrency enthusiasm, potentially affecting token prices, trading volume, and ancillary revenues for firms like Coinbase. The report notes the approval's impact on the cryptocurrency sector and Coinbase's role in potential Ether ETFs. Top Altcoin Gainers and LosersGainers:Sui SUI (+7.45%)Chiliz CHZ (+7.04%)Blur BLUR (+6.59%)Losers:Ordinals ORDI (-12.66%)Optimism OP (-9.98%)OKX OKB (-9.93%) NFT Market MapSotheby's Successful Bitcoin Ordinals AuctionAt Sotheby’s, the “Genesis Cat” Bitcoin Ordinals sold for $254,000, generating over 50 bids and 6.31 BTC. The wider Ordinals sale earned $1.1 million, with 26 BTC made through Natively Digital. Taproot Wizards' Quantum Cats collection of 3,333 images pays homage to early Bitcoin code. Sotheby's has also conducted NFT sales on Ethereum. #AuctionUpdate: With over 50 Bids, ‘Genesis Cat’ by @0xfar for Taproot Wizards’ has achieved an impressive $254,000 (6.31 BTC), 12X over the high estimate. pic.twitter.com/fr0bArNIBh— Sotheby's Metaverse (@Sothebysverse) January 22, 2024 Pudgy Milady NFT Collection's ExpansionPudgy Milady, an NFT collection, initially planned for 7,777 items, has expanded to mint and sell new tokens. The collection mimics successful NFT styles such as Pudgy Penguins and Milady Maker. It lacks essential features like GitHub, audit, roadmap, and Discord server. OpenSea and Blur have disabled its sale on their platforms. This article has been refined and enhanced by ChatGPT.