Hello Crypto Enthusiasts!

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

Whoa…it’s been a wild 24 hours.
Below I’ve included a TLDR of today’s top stories:

• SEC Bitcoin ETF Drama: A false tweet from the SEC caused a Bitcoin price rollercoaster.

• Cosmos Tokenomics Revision: Cosmos proposes to cut the inflation rate of its ATOM token, a move aimed at enhancing its economic model.

• MicroStrategy's Bitcoin Profits: MicroStrategy reports a massive $800 million profit from its Bitcoin investments.

• FOX's Blockchain Venture: FOX Corporation launches 'Verify' with Polygon PoS, a tool for authenticating digital content, signaling its foray into blockchain.

• India's Crypto App Clampdown: Apple's App Store in India blocks major crypto exchange apps following regulatory directives.
  
  In addition to the top headlines mentioned above I’ve also included today’s TA covering BTC, ETH, DOGE, and ETH beta coins!
  
  Let’s just hop into it.

📰 News Highlights:

🔒 SEC X Account Drama Unveils Bitcoin ETF Speculation Rollercoaster! 🎢 (Link)(Link)

SEC Chair Gary Gensler found himself in the midst of a digital storm as the SEC's official X account erroneously declared the approval of spot Bitcoin exchange-traded funds (ETFs).

The deleted fake spot Bitcoin ETF approval post on X

This premature announcement sent shockwaves through the crypto community, sparking a rally that boosted BTC prices by 2.5%, only to be followed by a 7% dip as Gensler clarified the misinformation.

The SEC swiftly attributed the false tweet to a compromised X account, emphasizing that no official approval had been granted. However, the incident raises eyebrows, as the commission is expected to make a crucial decision on a spot Bitcoin ETF in the coming days. The unfolding drama serves as a reminder of the crypto market's sensitivity to regulatory cues and the potential impact of official announcements on asset prices.

💸 Cosmos Contemplates Tokenomics to Reduce Inflation! 🚀 (Link)

In a bid to fine-tune its tokenomics, Cosmos developers are exploring a proposal to slash the inflation rate of its native token, ATOM. StakeLab, a key player in the Cosmos ecosystem, spearheads this initiative, suggesting a reduction of the minimum inflation rate for ATOM to 0%. 

The current inflation rate, ranging between 7% and 20%, has sparked discussions about the viability of this adjustment.

StakeLab argues that maintaining a perpetual 7% annual emission rate, even if the entire token supply is staked, raises concerns. The proposal aims to stimulate community dialogue on whether protocol revenue from emerging Cosmos consumer chains should be redirected to ATOM stakers rather than adding to token supply.

As Cosmos contemplates this significant shift, the community awaits the outcome of the proposal vote, which requires a quorum of 40% of ATOM's outstanding supply and sufficient yes votes before Jan. 23.

💼 MicroStrategy’s Profits Surge to $800 Million in 2024! 📈 (Link)

MicroStrategy, the tech firm synonymous with its bullish stance on Bitcoin, is making headlines again as its BTC investment proves to be a lucrative venture. In the early days of 2024, MicroStrategy has raked in over $800 million in profits from its Bitcoin holdings, further solidifying its position as a pioneer in corporate Bitcoin treasury management.

The firm's strategic Bitcoin accumulation, dating back to August 2020, has evolved into an impressive portfolio of 189,150 BTC, valued at approximately $8.832 billion as of Jan. 9. 

The recent surge in BTC prices, particularly a $3,000 daily candle on Jan. 8, propelled MicroStrategy's 2024 returns to a staggering $600 million. As the crypto community applauds MicroStrategy's financial foresight, the firm's CEO, Michael Saylor, mirrors the success personally, boasting ownership of over 17,000 BTC.

🔗 FOX Corporation’s New Blockchain Tool to Authenticate Digital Content! 🌐 (Link)(Link)(Link)(Link)

FOX Corporation takes a groundbreaking step into the blockchain realm with the launch of 'Verify,' an open-source protocol developed in collaboration with Polygon PoS. 

This innovative tool is set to revolutionize the verification of digital content, providing a robust solution to combat challenges posed by AI-generated media. 'Verify' emerges from FOX's Blockchain Creative Labs, showcasing the media giant's commitment to leveraging blockchain for creative and practical applications.

Designed to tackle copyright concerns in the digital landscape, 'Verify' uses digital signatures to authenticate and trace the origin of media content. The tool aims to simplify licensing processes, especially for AI training on large language models (LLMs). This move aligns with FOX's broader strategy to explore the intersection of blockchain and media, offering a potential remedy to copyright infringement issues that have recently surfaced, as seen in The New York Times' lawsuit against OpenAI.

🔍 Industry Insights: 

🍏 Apple India's Crypto App Blocks Binance and other Exchange Apps Amid Regulatory Clampdown! 🚫 (Link)(Link)(Link)

In a regulatory tussle, Apple's App Store India has blocked access to popular crypto exchange apps, including Binance, KuCoin, and others, following the Indian Finance Ministry's non-compliance notice. 

The notice, issued on Dec. 28, targeted nearly a dozen foreign non-registered crypto exchanges, requiring them to register as 'reporting entities' to operate in India. This move is part of India's broader regulatory efforts amid increasing demands for a balanced crypto framework.

The ban on these apps adds a new layer to the evolving crypto landscape in India, where regulatory uncertainties persist. The government's actions are met with mixed reactions, with some seeing it as a step towards much-needed regulation and others expressing concerns about the impact on the burgeoning crypto community. As the dust settles, eyes turn to further developments in India's crypto regulatory journey.

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🔍 Technical Analysis:

10/02: BTC, ETH, DOGE, and ETH BETA COINS!

In today's market analysis, a focus is placed on various Ethereum Beta tokens amidst the dynamic events that unfolded throughout the day. Investors should brace themselves for a rollercoaster ride, given the influx of news, FUD (Fear, Uncertainty, Doubt), and ever-changing narratives occurring every hour.

Bitcoin Market Analysis

Bitcoin has experienced a notable shift since the last analysis, surging by at least +$2000 or a 5% movement since the discussion on Monday, January 8, 2024. Several fundamental factors contribute to this, primarily the heightened anticipation surrounding spot Bitcoin ETF news. Additionally, a plethora of analyses from reputable sources like Bloomberg has continuously speculated on bullish news, creating an atmosphere of expectation in the market, particularly evident on the active X platform frequented by crypto enthusiasts.

As of the current moment, BTC has successfully reached our previously identified price target of $47,000 and even peaked at $48,000 on Binance USDT perpetual futures. However, a significant downturn followed in response to the circulation of fake ETF filing news. If this downward trend persists and the previous support levels of $45,000 to $44,000 are breached, there is a possibility of the price plummeting as low as $40,000. To offer a clearer perspective, a chart has been provided below, outlining potential expectations for the coming days.

Ethereum Market Analysis

In the previous ETH analysis, the emphasis was on the bullish potential, contingent on the strength of the support at $2100. Surprisingly, the support held, propelling the price to an impressive $2,430—a substantial increase of +$205 or +9% from the initial charting. The impact of the fake ETF news on Ethereum has been both incredible and unexpected, particularly evident in the ETHBTC rebound shortly after the revelation that the Spot Bitcoin ETF news was false.

Following the news, a significant number of investors and VC firms promptly shifted focus to acquiring ETH and withdrawing funds from centralized exchanges (CEX) to diminish CEX supply, contributing to a bullish sentiment. This transactional shift was swiftly observed on the blockchain. Notably, a billion dollars' worth of USDT was minted just a few hours before the ETF news, potentially prompting investors and speculators to engage in FOMO (fear of missing out) trading, especially in long positions for alts, particularly ETH. SRC Considering these factors, an analysis has been outlined to provide insights into what can be expected in both the ETHBTC and ETHUSDT pairs.

Altcoin Watchlist:
Observing a distinct bounce on the ETHBTC chart, attention should also be directed towards potential Ethereum beta plays. The provided image depicts the comprehensive list of ETH beta tokens, but the focus will be narrowed down to a select few with evident fundamentals or upcoming narratives.

DOGE

DOGE, among the earliest memecoins to gain popularity, frequently engages with Elon Musk, who considers it one of his favorite dog-themed tokens. On Tuesday, January 9, 2024, a sensational piece of news surfaced on the X platform, reporting the alleged demise of the Doge Dog (Kabosu) in Japan.

Subsequently, it was confirmed that the news was fabricated, but the impact on DOGE's price action had already occurred. Reacting to the news, Elon Musk promptly removed the #DOGE ticker from his profile, causing widespread confusion regarding the token's manipulation.

Despite the tumultuous events, from a technical standpoint, a robust high-timeframe range is still forming, urging a stance of patience for now. A breakout above the resistance at $0.875 could signify a potential pump, while maintaining the steadfast support at $0.711 may indicate signs of a rebound. It's important to note that the token experienced considerable manipulation, fueling ongoing fear, uncertainty, and doubt (FUD) across various cryptocurrency discussion platforms.

Lido Finance

The current standout beta play for Ethereum is Lido Finance, positioned prominently among ETH liquidity staking platforms with steadily increasing revenues and total value locked (TVL). The token initially gained attention in early January of 2023, coinciding with the emergence of the LSD narrative. Interestingly, it's during this time of the year that LDO is once again attracting significant interest. Other LSD protocols, such as Frax Finance and Pendle, are also gaining attention.

From a technical standpoint, LDO has recently achieved a new yearly high at $4 on certain exchanges. Should the upward momentum persist, attention should be directed towards the $3.33 and $2.6 levels, both of which serve as robust support levels. Monitoring these key levels is essential for assessing the token's resilience in the market.

Arbitrum

ARB is currently undergoing significant upgrades and introducing new functions throughout the year. One notable development is Arbitrum Orbits, a feature set to launch this year, enabling the permissionless creation of L3, or Orbit Chains. These Orbit Chains will empower developers to operate high-volume decentralized applications (dapps) with customizable parameters, including aspects such as privacy, fee tokens, governance, and nearly fully customizable chain configurations. Additionally, the platform supports a diverse range of programming languages such as Rust, C, and C++.

The long-term vision of the Arbitrum Foundation involves establishing communication among chains, fostering an ecosystem of Orbit Chains interconnected by the main Arbitrum One or Arbitrum Nova network. With robust fundamentals and a stream of bullish news, it's not surprising that Arbitrum's total value locked (TVL) has surged from $900 million to over $2 billion.From a technical perspective, Arbitrum appears strongly bullish, firmly holding its previous all-time high at $1.82. As long as the price remains above this support level, there is potential for further upside in the market. Investors are likely keeping a close eye on these developments and technical indicators to gauge future opportunities.

😂 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 tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com