Hello Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

📰 Today’s Headlines:

1. Genesis Global Settles with SEC: Genesis Global agrees to a $21 million settlement with the SEC over unregistered securities offerings, marking a significant step in resolving ongoing legal issues.

2. Senators Warren and Brown on Crypto Risks: At a Senate Banking Committee hearing, Senators Elizabeth Warren and Sherrod Brown express concerns over the use of cryptocurrencies in illicit finance, advocating for stricter regulations.

3. Jupiter DEX's Trading Volume Soars: Jupiter DEX records a staggering $1.4 billion in daily volume following its native token launch, underscoring the growing influence of decentralized exchanges.

4. DOJ Charges Trio in FTX Hack: The Department of Justice charges three individuals in connection with a $400 million SIM-swapping hack targeting the FTX exchange, highlighting the ongoing cybersecurity challenges in crypto.

5. Feature of the Day - OPNX Exchange Shutdown: The OPNX exchange, founded by the co-founders of Three Arrows Capital, announces its closure amid ongoing legal and financial challenges.

6. Technical Analysis - Market Trends: We analyze the latest market trends for BTC, ETH, SOL, JUP, and ZETA, focusing on altcoin momentum and key price movements in the context of recent market developments.
   
   All this and more in today’s headlines!

📰 News Highlights:

Genesis Global Settles with SEC for $21M💸🤝 [Source]

Genesis Global Holdco and its affiliates have reached a settlement with the United States Securities and Exchange Commission (SEC), agreeing to pay $21 million. The settlement stems from a civil lawsuit filed by the SEC against Genesis, accusing the firm of the "unregistered offer and sale of securities" through the Gemini Earn program. Genesis debtors proposed a hearing on Feb. 14 to formalize the settlement, highlighting its significance in resolving the SEC's legal action and eliminating uncertainties associated with prolonged litigation.

The settlement unfolds against the backdrop of Genesis suspending withdrawals in November 2022 and subsequently filing for bankruptcy in January 2023. The SEC's case focused on the period between February 2021 and November 2022, alleging violations of U.S. securities laws. 

This resolution underscores the broader regulatory challenges faced by crypto firms, with notable cases involving Bittrex and ongoing legal battles with entities like Ripple, Binance, Coinbase, and Kraken. The settlement amount of $21 million marks a substantial financial commitment and reflects the ongoing efforts to address regulatory concerns within the crypto industry.

Senators Elizabeth Warren and Sherrod Brown Express Concerns Over Crypto Illicit Finance 🏦🔍 [Source][Source]

In a Senate Banking Committee hearing, Senators Elizabeth Warren and Sherrod Brown raised apprehensions about the potential misuse of cryptocurrencies in illicit finance and scams. Sen. Warren reiterated her stance on advancing the Digital Asset Anti-Money Laundering Act, a bill aimed at strengthening anti-money laundering rules related to crypto transactions. The proposed legislation, supported by 19 other senators, seeks to extend Bank Secrecy Act requirements to miners, validators, and wallet providers, fostering increased visibility and regulatory oversight.

During the hearing, Sen. Brown echoed concerns about frauds and scams in both traditional banking and the cryptocurrency space, emphasizing the need for a safer financial system. The discussion also delved into stablecoins, with Sen. Warren citing recent data indicating their prevalent use in illicit crypto transactions. 

The hearing aligns with heightened regulatory scrutiny on crypto, showcasing the legislative push to establish a robust framework addressing potential risks and vulnerabilities associated with digital assets.

Jupiter DEX Records $1.4 Billion Daily Volume🚀💱 [Source][Source]

Decentralized exchange (DEX) aggregator Jupiter achieved a remarkable milestone by registering nearly $1.4 billion in trading volume within the last 24 hours. This surge in activity coincided with the launch of Jupiter's native token, driving significant engagement on the Solana network. The highly-anticipated token launch, accompanied by an airdrop, attracted substantial trading volumes across centralized exchanges, including Bybit, Binance, Bitfinex, and OKX.

Jupiter's governance token (JUP) commenced trading at $0.40 and currently trades at $0.60, indicating a 50% increase from its initial price. The token's market cap stands at $808 million, with a fully diluted value reaching $6 billion.

The successful token launch, albeit not without controversy, positions Jupiter as a prominent player in the DEX space. The project's commitment to airdrop phases and engagement levels underscore the evolving dynamics of decentralized finance (DeFi) on the Solana blockchain.

DOJ Charges Trio for $400 Million SIM-Swapping Hack Targeting FTX 💻🔐 [Source]

The Department of Justice (DOJ) has filed charges against three individuals—Robert Powell, Emily Hernandez, and Carter Rohn—for orchestrating a SIM-swapping attack resulting in the theft of over $400 million. While the indictment does not explicitly name the victim company, reports suggest that FTX, a collapsed cryptocurrency exchange, is among the victims. The charges include conspiracy to commit wire fraud and identity theft, shedding light on the modus operandi involving fraudulent SIM swapping.

The attackers allegedly gained access to an FTX employee's AT&T account, subsequently unlocking FTX's online accounts and siphoning off cryptocurrency funds. This incident adds another layer of complexity to FTX's troubled history, marked by bankruptcy, legal accusations against its founder Sam Bankman-Fried, and ongoing legal battles.

The charges filed by the DOJ underscore the persistent threats of cybercrime in the crypto industry, necessitating robust security measures to safeguard digital assets.

💡 Feature of the Day:

Co-Founders of Three Arrows' OPNX Exchange Shutdowns 📉🔒 [Source]

OPNX, the hybrid platform combining a crypto exchange and bankruptcy claims system, founded by the co-founders of Three Arrows Capital, is set to cease operations by Feb. 14. The exchange, initiated by Su Zhu and Kyle Davies following the collapse of Three Arrows Capital, informed users to settle all positions by Feb. 7 and withdraw funds by Feb. 14, after which withdrawal functionalities will be disabled. The closure of OPNX follows a tumultuous journey for Zhu and Davies, who faced legal challenges and prohibition orders in Singapore.

The announcement of OPNX's shutdown led to a 38% drop in the price of its native OX token within an hour. Teneo, the firm overseeing the liquidation of Three Arrows Capital's assets, is actively pursuing a $1.3 billion recovery from Zhu and Davies, alleging significant leverage misuse.

The closure of OPNX serves as a concluding chapter in the co-founders' post-bankruptcy endeavors, reflecting the broader challenges faced by entities emerging from financial distress in the crypto space.

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🔍 Technical Analysis:

Price Analysis 02/02: BTC, ETH, SOL, JUP, and ZETA [Source]

The Federal funds rate held steady at 5.5%, meeting expectations, causing a minor dip in both traditional finance and crypto markets, which quickly rebounded the next day. Bitcoin is stuck in a sideways trend, while select altcoins are seeing pumps driven by various factors and strong fundamentals. Notably, tokens like BONK or PEPE, with tickers featuring “1000,” continue to lag behind BTC, indicating significant underperformance. Conversely, projects like ICP and AGLD are outshining BTC with their robust fundamentals. So, what altcoins and price levels should you keep an eye on? Let’s explore further.

Bitcoin Market Analysis

After the recent FOMC volatility, Bitcoin is now in a steady range within its daily boundaries. The current scenario suggests that while Bitcoin’s price remains stable due to its fundamentals, Altcoins are gradually picking up momentum. This indicates that Bitcoin may be experiencing a distribution phase, where liquidity flows from Bitcoin to Altcoins, possibly signaling a brief alt season just before the halving. Similar price action was observed during the 2019 halving, where prices surged before the event and dipped afterward. A similar trend is expected this year, albeit in a more controlled manner, as traditional finance liquidity enters the market. This influx typically maintains natural and consistent price movements, reducing significant fluctuations and mitigating abrupt price swings.

Ethereum Market Analysis

Ethereum is currently in a bullish tone, albeit with a more restrained range compared to Bitcoin. Instead of a distribution phase, Ethereum seems to be gearing up for a re-accumulation period before a potential surge. Since the start of Bitcoin’s rally last year, Ethereum has been lagging behind, evident in its ETHBTC chart. With a mini alt season anticipated, Ethereum is poised for a short-term uptick as it aims to outperform ETHBTC. Check out the analysis below for more details. Notably, Ethereum needs to surpass the range high at the gray box to push past $2800, paving the way for other ETH assets like ENS, LDO, ETHW, or ETC to follow suit.

Altcoin Watchlist

SOL

SOL has been pumping for the past 24 hours now, and has been holding strong against BTC and ETH. With the current hype of the SOL shitcoin ecosystem people are investing and using the network as it has cheaper fees, no predatory tax, and has overall much better experience compared to doing shitcoins on ETH or on BSC. The next shitcoin paradise may be SOL, the previous one was BSC as it pumped a lot of rugs and scams but still was able to generate a substantial amount of volume. This shitcoin meta may pump SOL as people use the network and get more SOL for more plays in the ecosystem. On a technical perspective SOL broke out of its long trendline and had a perfect retest where in it pumped by atleast 9% after it retested, once it has momentum we may see create another yearly high above 130$.

JUP

Here’s a scoop on the Jupiter (JUP) airdrop: 64% of folks have already claimed their tokens, and there are over 480,000 eager claimers in the mix. With JUP’s price at $0.59, its value matches up with UNI’s $6 billion worth. Despite potential selling pressure from remaining claimants and holders, the market might not fully grasp Jupiter’s potential, especially considering its promising perpetuals platform and launchpad. Short-term price predictions are up in the air, influenced by factors like liquidity and Bitcoin’s performance. Once the 7-day lock is up, the DLMM pool will be gone, offering an intriguing peek into JUP’s future.

Now, let’s talk strategy behind the airdrop decision. Instead of going for an OTC deal or regular IDO, the team opted for the airdrop, despite the uncertainties and risks involved. By spreading tokens through the airdrop, recipients have a big pool to sell into, while potential buyers can breathe easy knowing there’s enough liquidity to handle any selling frenzy. Despite the risks, the team’s got their eyes on creating a market that’s fair for everyone, with steady prices and happy stakeholders. This experimental approach is all about making Jupiter and the broader crypto world better for everyone involved, showing the team’s dedication to finding solutions that work for everyone.

ZETA

Zeta Blockchain is an L1 platform with something called an omnichain concept. Basically, it allows apps to easily connect to multiple chains that $zeta plans to support in the future. Right now, it’s all about convenience – you can connect to zeta without messing with your wallet’s chain settings, and it’s compatible with both BNB and ETH. Plus, it’s got some serious backing from Jane Street, with a hefty $27 million in funding – not too shabby, right?

Now, here’s the scoop: there’s been a bit of a sell-off by airdroppers lately, which has made the price look a bit rough. But don’t count it out just yet – this platform is listed on most major exchanges (except Binance, for now), and its fully diluted valuation is pretty sky-high, about 9 times higher than its market cap! It’s definitely got that new shiny thing vibe going on, and considering it’s an L1 with a market cap of $200 million, some folks think it’s flying under the radar as a serious contender. Oh, and by the way, funding on Bybit is currently in the red zone. On the price action front, ZETA has seen a massive surge from its initial listing price of around $0.936 to $2.20, marking a whopping 135% increase. The community is loving it as the price keeps climbing higher and higher!

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all Monday!

Jonathan Gibson
UseTheBitcoin.com