Crypto market highlights as January 2024 markets close 

As the crypto market concludes in January 2024, key trends and developments have shaped the landscape. The market witnessed a remarkable surge in December 2023, closing the year with a substantial 15.2% increase in total market capitalization.

A breakout in early January led to the total market cap reaching a one-year high of $1.8 trillion on January. The crypto market presents a complex and evolving landscape marked by exciting potential future prospects.

Crypto markets close ahead of February markets

Investors observed cryptocurrency market trends, evaluating development and marketing channels, with assessments indicating a dynamic and impactful period. Additionally, the approval of spot trading by the Securities and Exchange Commission contributed to momentary surges in early trading, impacting the overall market dynamics.

So, what happened today? In January 2024, decentralized finance (DeFi) security startup Quantstamp discovered that Web3 initiatives suffered a combined loss of $38.9 million due to smart contract hacks, key compromises, and fraud.

In terms of the five smart contract protocols that experienced the most significant losses, Goledo Finance, Gamma Strategies, Radiant Capital, and Wise Lending are in that order.

Germany seizes 50,000 BTC

In the course of an extensive inquiry into purported infringements of copyright, German state authorities have seized approximately 50,000 BTC.

The seizure was linked to two Polish and German nationals who acquired the Bitcoin using the earnings from unauthorized content, according to an announcement made by the Saxony police on January 30. Per the current crypto market valuations, the confiscated funds are in excess of $2.1 billion.

According to the authorities, the Bitcoin was seized after the suspects willingly transferred them to official wallets supplied by the police. Regarding the use of Bitcoin, this indicates that no definitive decision has been reached as of yet.

Other governments, in addition to Germany, have seized Bitcoin. The United States has seized a cumulative sum of 210,429 BTC in relation to a multitude of criminal activities, as reported by Glassnode.

Terraform Labs says bankruptcy will aid SEC appeal

Terraform Labs, the developer of the defunct stablecoin TerraClassicUSD (USTC) and owned by Do Kwon, says its filing for Chapter 11 bankruptcy protection could assist it in appealing a Securities and Exchange Commission lawsuit.

Chris Amani, CEO of Terraform Labs, stated in a filing dated January 30 that in order to proceed with a typical appeal against the SEC, the company would be required to post a “supersedeas bond” equal to 110% of the total verdict. Due to its bankruptcy protections, the company may now be exempt from posting such a surety in order to file an appeal.

Terraform’s appeal will contend that the firm’s crypto assets do not qualify as securities under the law, and as such, the SEC’s enforcement action is not within the agency’s purview. 

Amani stated that should the appeal be granted, it would “eliminate the single largest claim” against Terraform Labs and constitute a substantial advancement towards the complete restoration of creditors’ rights. Jan. 21 saw the bankruptcy filing of Terraform Labs in the Delaware Bankruptcy Court. 

In the interim, the SEC is attempting to dismiss its case against the crypto company Debt Box, which could result in sanctions for tampering with case details.

Crypto investors expect BTC all-time high prices during halving

Optimism regarding new all-time highs for Bitcoin is being fueled by the fourth-ever Bitcoin halving, according to a market study involving nearly 10,000 cryptocurrency investors.

Bitget’s survey of investor confidence regarding the eagerly awaited halving of Bitcoin’s subsequent mining reward yielded results that reflect investor confidence in the event.

The research project enrolled a total of 9748 participants from November to December 2023; the data used for analysis was anonymized.

84% of participants anticipate Bitcoin to surpass the all-time peak of $69,000 set by the bull market in 2021. Regionally, East Europe respondents were the least optimistic regarding this outcome, with 75% of respondents in favor of Bitcoin possibly breaking its previous record.