🥳 Happy ETF week?

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Good Morning!

Is this finally the week that we’ve all been waiting for? The week that the Bitcoin spot ETF gets approved, we think so, but of course anything can happen.

Let’s dive into how you will know if a spot ETF has been approved and some other economic factors which may impact Crypto this week.

Markets

Here's how to know if a spot bitcoin ETF has been approved (3 minute read)
Investors and asset managers are eagerly anticipating updates on the Securities and Exchange Commission's (SEC) ongoing review of twelve applications for a spot Bitcoin ETF. The decision, anticipated this week due in part to the Jan. 10 deadline for the SEC's response to the first set of applications from Cathie Wood's ARK Investment and 21Shares, holds the potential to inject billions of dollars into the cryptocurrency sector.

Despite this optimism, there are still procedural steps and considerations before such approval becomes a reality. Analysts acknowledge the SEC's extensive authority in the process, raising the possibility of a decision delay. Signs from the end of last week were optimistic, as stock exchanges promptly submitted 19b-4 forms for each proposed fund, and market participants are closely monitoring the SEC's website for updates on these rule filing forms, recognizing that any approval would likely be announced there initially.

US Economic Calendar Meets Crypto (3 minute read)
The upcoming week in the United States promises a busy economic calendar, featuring key reports that shine a spotlight on inflation and concluding with a flurry of bank earnings. Early in the week, attention will be on reports covering consumer credit, trade deficit, and wholesale inventories released on Monday, Tuesday, and Wednesday, respectively, though their impact is generally considered low.

Thursday takes center stage with the publication of the December consumer price index (CPI) report, a highlight of the week. Market observers eagerly await these figures to gauge whether inflation will sustain its downward trajectory or plateau around 3%.

The forecast suggests a modest 0.2% rise in December CPI, which, while not substantial, could impede recent progress, potentially pushing the annual increase in prices to 3.3% from 3.1%.

Solana Meme Coins See 80% Price Drop After December Frenzy (2 minute read)
The insane demand for meme coins on the Solana network has experienced a downturn in the past week, with newer tokens struggling to build substantial communities and the prices of recent favorites witnessing significant declines. Bonk (BONK), a dog-themed token that saw a remarkable 1,000% surge over three months, has plummeted over 70% from its December peak when it was listed on prominent exchanges. Similarly, Dogwifhat, known for a dog wearing a hat, has seen an almost 80% decrease after initially creating excitement by providing early holders with over a 10,000% return on their capital. Other lesser-known tokens like popcat (POPCAT) and chipi (CHIPI), both cat-themed, have declined by over 90% since reaching their lifetime peaks, although their communities are still holding out hope for a potential revival.

Tech

Scammers impersonate crypto journalists with malicious Calendly links on X (4 minute read)
Security experts are alerting users as malicious actors circulate fraudulent Calendly bot clones on X, masquerading as crypto journalists. A recent post on X by blockchain security firm SlowMist reveals that the con artists are specifically targeting Chinese-speaking victims, although we’ve seen a similar scam targetting English speakers too.

The scammers, posing as crypto journalists, initiate direct messages containing links that mimic the legitimate Calendly bot, ostensibly for scheduling interviews. Unfortunately, unsuspecting victims who grant authorization to this deceptive bot inadvertently relinquish control of their X accounts. This grants scammers the capability to disseminate phishing links through the compromised accounts, highlighting the need for heightened awareness and caution within the crypto community.

Mysterious Bitcoiner spends $64K to inscribe 9MB of data on Bitcoin (3 minute read)
An anonymous user recently spent around $64,000 in fees to embed nearly 9 megabytes of raw binary data into the Bitcoin blockchain. On January 7. Over 1 Bitcoin was utilized for 332 inscriptions at approximately 11:20 am UTC on January 6, featuring "raw binary data." The intriguing aspect lies in the mystery surrounding the content of this data, with no apparent answers so far.

Despite attempts, including the use of OpenAI's ChatGPT, no one has successfully deciphered the encoded information. Some speculate that it might be encrypted, making decryption potentially challenging or even impossible. The Bitcoin address associated with this enigmatic data inscription spree, labeled "Unnamed", is "bc1pnp…zwd0th," leaving users pondering both the content and the identity of the individual responsible for this unique blockchain activity.

Misc

Bitcoin ETF tweets and Vitalik’s car crash: How news real and fake moves crypto prices (4 minute read)
The crypto markets often display a chaotic nature. Driven not only by fundamentals but also by hype, digital asset prices can experience significant volatility influenced by daily news and social media narratives. A recent example occurred when a Matrixport analyst note dampened expectations of the SEC's imminent approval of the US's first spot bitcoin ETF, leading to a sudden 10% drop in Bitcoin's price. This triggered a widespread sell-off in crypto markets, resulting in a $500 million liquidation across derivatives exchanges in just a few hours, marking the most substantial wipeout in months.

Regardless, the crypto industry has long been characterized by both genuine and misleading news headlines, contributing to its inherent volatility.

Arthur Hayes Foresees 30% Bitcoin Crash Amid 'Vicious Washout.' Here's Why (3 minute read)
While the crypto community eagerly awaits a decision on the spot bitcoin exchange-traded fund (ETF), Arthur Hayes, the Chief Investment Officer of family office Maelstrom and former CEO of BitMex, has issued a cautionary note, predicting a potential 20-30% decline in the coming months.

In a blog post on Friday, Hayes highlighted looming risks for U.S. banks and markets, suggesting the possibility of a "liquidity rug pull" event in March, reminiscent of the banking crisis in the same month last year. Expressing readiness for a significant market correction, he emphasized his preparation for a "vicious washout of all the crypto tourists" in March, advising a cautious approach until April, considering it a "no-trade zone" in terms of adding risk, despite having increased his crypto holdings in the second half of 2023.

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