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Overview

• Gemini-backed stablecoin Gemini Dollar (GUSD) has lost its USD peg, falling by 0.84% in the last 24 hours.
• Crypto exchange OKX announced that it would delist GUSD on Feb. 1.
• The exchange is also facing increased scrutiny from the New York Department of Financial Services over claims related to Federal Deposit Insurance Corporation coverage.

Gemini Dollar Price Drop

Gemini Dollar (GUSD), a stablecoin backed by digital asset platform Gemini, has dropped its US Dollar parity, slipping to $0.9851 in the last 24 hours according to CryptoSlate’s data. The number of active addresses holding GUSD has also fallen to a 2020 low, while GUSD’s supply has dropped from around $880 million three months ago to $607 million.

OKX Delisting

Crypto exchange OKX announced that it will be delisting GUSD on Feb. 1 at 8:00 am UTC, citing user feedback and its delisting policy as reasons for the decision. The exchange said it monitors all listed projects regularly and reviews their listing qualifications on a regular basis.

Increased Scrutiny

The New York Department of Financial Services is investigating Gemini over claims related to Federal Deposit Insurance Corporation (FDIC) coverage, which some users believe were misleading them into believing that Earn product was FDIC insured as well. Furthermore, Genesis and Gemini are currently engaged in a public spat regarding their respective Earn products.

Conclusion

With prices dropping significantly and multiple investigations surrounding it, the future of Gemini dollar remains uncertain at this point in time. With exchanges such as OKX delisting the coin and more regulatory attention being paid towards its activities, only time will tell how things pan out for GUSD in the long run

• Bitcoin and Ethereum have increased by over 35% since the start of the year, with other risk-on assets also experiencing a strong January.
• The euro, pound sterling, and Russian ruble are all up on DXY year-to-date.
• Nasdaq, S&P 500, Gold, and TLT are all up year to date.

The cryptocurrency market has had a strong start to the year, with Bitcoin and Ethereum increasing by over 37% and 35% respectively since the start of the year. This is indicative of a shift in financial markets expectations that interest rate policy could ease with inflation softening. This is in stark contrast to the market conditions experienced in 2022, when risk assets were crushed due to rate hikes increasing at the fastest pace ever.

The strong performance of Bitcoin and Ethereum, as well as other risk-on assets, has been further evidenced by the performance of major currencies such as the euro, pound sterling, and Russian ruble, which are all up on the DXY index year-to-date. Moreover, the Nasdaq, S&P 500, Gold, and TLT are all up year-to-date, further indicating the strength of the risk-on asset market.

The strong performance of risk-on assets so far in 2023 is an encouraging sign for the cryptocurrency market, as it suggests that investors and traders are confident in the asset class and are willing to take on more risk. With the market currently in a bull market, it could be a good time for investors and traders to capitalize on the current market sentiment and potentially benefit from the strong returns that cryptocurrencies have been offering.

• Bitcoin has broken $21,000, with the market cap at $403 billion.
• $245 million of shorts were liquidated over the past 24 hours, while $255 million of Bitcoin was bought on spot markets.
• Bitcoin’s gains this week may be due to positive anticipation and sentiment toward a Consumer Price Index announcement.

The cryptocurrency Bitcoin has broken a new record, reaching a price of $21,083 at 12:59 a.m. UTC on Jan. 14, according to Coingecko data. This marks a 12% increase in its value in just 24 hours and a massive jump in its market cap, which now stands at $403 billion.

The surge in Bitcoin’s value is part of a larger trend in the crypto market, with the entire crypto market cap up 8% in the past 24 hours, now at a staggering $1.02 trillion. This notable growth has outpaced that of the stock market, with the Dow Jones up 0.3% today.

The cause for Bitcoin’s impressive performance today may not be due to any one major event, but rather to a combination of factors. Positive anticipation and sentiment toward a Consumer Price Index (CPI) announcement this week likely contributed to its growth, and investors may be optimistic now that Bitcoin has crossed the round number of $20,000.

In addition, data shows that $245 million of shorts were liquidated over the past 24 hours, while $255 million of Bitcoin was bought on spot markets today. This indicates that investors are feeling confident in the cryptocurrency, as they continue to purchase it in large amounts.

All in all, Bitcoin’s performance today is indicative of a larger trend in the crypto market. With more and more people investing in cryptocurrency and its value continuing to rise, it’s clear that Bitcoin is here to stay.

• 23,600 crypto employees lost their jobs in 2022, making it the highest number of crypto layoffs ever recorded.
• Coinbase, Kraken, Bybit, Amber Group, Huobi, and Bitpanda were among the top firms with the highest number of layoffs.
• Crypto exchanges have been hit harder than other crypto firms due to the dip in trading volume as a result of the bear market.

The crypto industry has been hit hard by the bear market, leading to massive layoffs across the sector. In 2022, a total of 23,600 crypto employees lost their jobs, making it the highest number of crypto layoffs ever recorded in a single year.

Coinbase, one of the largest crypto firms, had to lay off 1160 employees, which accounted for 4.6% of the total crypto layoffs in 2022. Kraken also had to implement massive layoffs, with about 1100 employees losing their jobs, which was about 30% of its workforce. Bybit was not far behind, with 1,020 employees losing their jobs. Amber Group had to lay off 800 employees, while Huobi and Bitpanda had to lay off 300 and 270 employees, respectively. Other firms such as Snap, BlockFi, and Gemini also had to implement layoffs.

It is evident that crypto exchanges have been hit harder than other crypto firms due to the impact of the bear market. Most of these exchanges survive on transaction fees generated on their respective networks. As such, the decline in trading volume due to the bear market has had a massive effect on these exchanges.

Fortunately, the crypto industry is beginning to show signs of recovery as the market starts to stabilize. However, it remains to be seen how long it will take for the industry to fully recover from the effects of the bear market.

• BTC ended the year 2022 with a 65.38% decrease in value, while ARKK, MSTR, and COIN lost 67.79%, 74.64%, and 85.90% respectively.
• Only DXY and Gold recorded an increase year-to-date, with Gold increasing by 1.25% and DXY increasing by 7.55%.
• Ethereum (ETH) also followed BTC’s downward trend, recording a 68.32% decrease YTD.

At the end of 2022, the performance of Bitcoin (BTC) was compared against that of other leading assets and currencies. BTC ended the year with a 65.38% decrease in value, while Ark Innovation ETF (ARKK), MicroStrategy Inc. (MSTR), and Coinbase Global Inc (COIN) lost 67.79%, 74.64%, and 85.90% respectively. DXY and Gold were the only assets among the ones analyzed that recorded an increase year-to-date. Gold increased by 1.25% while DXY increased by 7.55%.

In mid-September, the British Pound (GBP) dropped to all-time lows against the U.S. dollar and its volatility soared. This made Bitcoin a more stable asset than the pound in October. Ethereum (ETH) followed BTC’s downward trend and recorded a 68.32% decrease YTD. This made 2022 the second-worst year for BTC, the worst being 2018 when the price recorded a 73% decrease.

In conclusion, the performance of BTC compared to other leading assets and currencies in 2022 showed a decrease in value across the board, with only DXY and Gold recording an increase. BTC’s 65.38% fall was better than that of ARKK, MSTR, and COIN, which lost 67.79%, 74.64%, and 85.90% respectively. Ethereum (ETH) followed BTC’s downward trend, losing 68.32% in value YTD.

• Sam Bankman-Fried, the former CEO of FTX, commented on the recent movement of Alameda-related funds, denying his involvement and offering to help with the investigation.
• Bankman-Fried faces criminal charges and is likely to be offered a plea deal similar to his associates.
• His next hearing is set for Jan. 3 and the Wall Street Journal suggests that he will plead not guilty.

Sam Bankman-Fried, the former CEO of FTX, recently returned to Twitter after weeks of inactivity coinciding with his arrest. He commented on a recent event that saw Alameda-related cryptocurrency addresses move at least $1.7 million of assets, which were transferred to crypto mixers in several batches on Dec. 28. Bankman-Fried denied that he was involved in the movement of funds, stating: “None of these are me. I’m not and couldn’t be moving any of those funds; I don’t have access to them anymore.” However, he added that it was likely that “various legit legs of FTX” can access those funds and said that he hopes that those entities were behind the movement of funds. He also offered to help advise regulators in the investigation, likely motivated by the criminal charges he is facing.

Bankman-Fried could possibly attempt to arrange a plea deal similar to those obtained by his associates, Caroline Ellison and Gary Wang, in order to reduce his sentence. However, one former federal prosecutor has suggested that Bankman-Fried is unlikely to be given a favorable deal due to his lead role in FTX’s alleged fraud. His next hearing is set for Jan. 3 and the Wall Street Journal suggested today that, based on its sources, Bankman-Fried will plead not guilty.

Overall, Bankman-Fried has denied any involvement in the movement of Alameda-related funds and has offered to help advise regulators in the investigation. His next hearing is set for Jan. 3 and the Wall Street Journal suggests that he will plead not guilty.

• Valkyrie Investments has submitted a proposal to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC).
• Valkyrie plans to offer orderly redemptions at net asset value (NAV), reduce GBTC fees, and offer redemptions in both Bitcoin and cash.
• Grayscale is attempting to convert GBTC into an ETF, and also looking at other possibilities such as a tender offer for up to 20% of outstanding shares.

Valkyrie Investments recently announced that it has submitted a proposal to become the sponsor and manager of Grayscale’s Bitcoin Trust (GBTC). GBTC is among the largest Bitcoin investment funds, valued at 643,572 BTC ($10.6 billion) at present. However, the fund is also in trouble, as GBTC was trading at 50% less than the value of the Bitcoin that it holds in December.

In efforts to improve upon Grayscale BTC, Valkyrie proposed to offer orderly redemptions at net asset value (NAV), allowing customers to withdraw their funds at a fair value without any issues. The company also aims to reduce GBTC fees and offer redemptions in both Bitcoin and cash. Moreover, Valkyrie is launching the Valkyrie Opportunistic Fund LP, which will take advantage of the discrepancy between GBTC and the NAV.

Grayscale, on the other hand, is attempting to convert GBTC into an ETF, in order to raise the price of the fund. The past attempts to do so have failed due to rejections from the U.S. SEC. Grayscale has also suggested other possibilities, including a tender offer for up to 20% of outstanding shares, according to recent Wall Street Journal reports.

Valkyrie noted today that it has a proven track record of successfully managing a Bitcoin fund, and said that its proposal is a significant improvement over the current management of GBTC. The company asked Grayscale to consider its proposal carefully. With both firms aiming to improve upon the operation of GBTC, it remains to be seen which of their plans will come to fruition.

• The total supply of wallets that hold between 0.1 Bitcoin (BTC) and 1 Bitcoin has surpassed 1 million coins.
• The collective supply of wallets that hold between 1 BTC and 10 BTC topped 2 million.
• The total BTC supply of wallets that hold between 1 BTC and 10 BTC broke its own all-time high by surpassing 2 million at the end of November.

As of December 29th, the total supply of wallets holding between 0.1 Bitcoin (BTC) and 1 Bitcoin has surpassed 1 million coins, while the collective supply of wallets that hold between 1 BTC and 10 BTC has topped 2 million. This indicates an exponential growth in the total supply of these wallets since late 2013, with significant growth periods in 2016 and 2018.

This surge in the total supply of wallets can be seen in the chart below, which represents the total supply held by wallets in question since 2010. The orange line illustrates how the total supply has been steadily increasing since late 2013, with short periods of exponential growth in 2016 and 2018.

The impressive growth in the total supply of wallets holding between 0.1 BTC and 1 BTC is further highlighted by the fact that the total supply held by wallets that hold between 1 BTC and 10 BTC has also broken its own all-time high by surpassing 2 million at the end of November. This surge in the total supply of these wallets can also be seen in the graph above, which shows how the total BTC supply held by wallets with between 1 BTC and 10 BTC has been increasing since 2010, with a significant spike in late 2011.

The continued growth in the total supply of wallets holding between 0.1 BTC and 1 BTC, as well as those holding between 1 BTC and 10 BTC, is a testament to the increasing popularity of Bitcoin as a digital asset and its increasing utility as a store of value. This trend has been further reinforced by the recent surge in the price of Bitcoin, which has seen the leading cryptocurrency break its own all-time high multiple times in the past month.

The growth in the total supply of wallets holding between 0.1 BTC and 1 BTC, as well as those holding between 1 BTC and 10 BTC, is a clear indication of the increasing popularity of Bitcoin and its status as a digital asset. This trend is expected to continue in the near future as more and more investors flock to Bitcoin in search of a safe-haven asset.

• Binance has secured 14 licenses and grew its headcount to 7,500 employees representing more than 100 nationalities.
• The exchange serves over 120 million users from all over the world and has increased its compliance team to 750 people from 500.
• Binance has enhanced its security and compliance capabilities by increasing its security and compliance staff by 500% in 2022.

Binance, one of the world’s leading cryptocurrency exchanges, achieved a number of major milestones in 2022. The exchange secured 14 licenses from 14 different countries, grew its headcount to 7,500 people representing over 100 nationalities, and serves over 120 million users from all over the world.

Binance CEO Changpeng (CZ) Zhao said that the goal of the exchange was to remain user-focused, despite the noise of token prices, projects’ reputations, and the fortunes of individual investors. Binance was able to remain true to this core value in everything they did.

Binance was also dedicated to securing regulatory licenses from various countries in order to meet local requirements. As of the end of 2022, the exchange holds 14 licenses from Abu Dhabi, Dubai, South Africa, France, Italy, Spain, Cyprus, Australia, and New Zealand, and is operational in over 140 countries worldwide.

In addition to the licenses, Binance also increased its security and compliance capabilities. The exchange increased its security and compliance staff by 500%, providing enhanced safety for its users. This commitment to security and compliance was further strengthened by increasing its compliance team to 750 people from 500.

With its achievements in 2022, Binance is well on its way to becoming a global leader in cryptocurrency. The exchange’s commitment to security, compliance, and user-focus makes it a trusted partner in the industry, and it’s sure to continue its success in the years to come.