Whale buys 257.5B SHIB amid price dip.
KuCoin pleads guilty, fined $300M in US case.
Bitcoin futures turn negative after Nvidia drop.
FOMC holds rates steady, impacting crypto.
MicroStrategy acquires 10.1K BTC
257.5 Billion Shiba Inu Stacked by Single Whale as Price Falls
Amid the current bearish wave sweeping across different assets on the cryptocurrency market, investors are making strategic moves to consolidate their positions. Notably, a Shiba Inu (SHIB) whale has accumulated another 257.5 billion SHIB worth $4.6 million.
Whale accumulation sparks market interest According to Lookonchain, an on-chain data analytics platform, the SHIB whale took advantage of the market downturn to make additional purchases. Commenters noted that this is a typical strategy for whales who want to buy more during market dips while betting on the future recovery of the price.
After making the purchase, data shows that the whale’s total SHIB holdings soared massively. The SHIB whale now has a cumulative 477.5 billion SHIB tokens valued at $8.57 million.
This massive accumulation signals a strong belief in the token’s future potential. Market analysts have interpreted this as bullish news for the Shiba Inu community. They insist that whales only make large purchases when they want to double their investment ahead of a bullish price move. The whale action also aligns with growing interest from other market participants, as SHIB trading volume has surged by 228.97% to $567.49 million. This increased investor interest is happening despite a notable 8.82% decline in price within the last 24 hours.
As of this writing, SHIB is changing hands at $0.0000182, according to CoinMarketCap data. The price of SHIB has traded between a low of $0.00001743 and a high of $0.00001997 within the same time frame.
Meanwhile, crypto analyst Ali Martinez has identified $0.0000185 to $0.0000212 as the critical support zone for Shiba Inu. However, selling pressure is pushing SHIB outside this identified zone. As market participants continue to consolidate their position, the broader SHIB community is anticipating bullish news from Shytoshi Kusama. As reported by U.Today, the SHIB army looks forward to the revolutionary news and an announcement as to when the development will roll out. #Shiba Inu
KuCoin pleads guilty, agrees to pay nearly $300 million in US crypto case
KuCoin, one of the world’s largest cryptocurrency exchanges, pleaded guilty on Monday to operating an unlicensed money transmitting business, and agreed to more than $297 million in fines and forfeiture, the U.S. Department of Justice said.
Peken Global Ltd, which operates as KuCoin, entered its plea before U.S. District Judge Andrew Carter in Manhattan.
The plea includes a $112.9 million criminal fine and $184.5 million forfeiture, and calls for KuCoin to exit the U.S. market for at least two years.
Two KuCoin founders — Chun Gan, known as Michael; and Ke Tang, known as Eric — each agreed to enter two-year deferred prosecution agreements, forfeit $2.7 million, and cede any role in KuCoin’s management and operations, the Justice Department said.
Prosecutors said Seychelles-based KuCoin had been used to facilitate billions of dollars of suspicious transactions, and to transmit potential criminal proceeds including from darknet markets and malware, ransomware and fraud.
This resulted from KuCoin’s alleged failure to implement effective anti-money laundering and know-your-customer programs.
KuCoin also failed to report suspicious transactions or register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network, or FinCEN, prosecutors said.
Founded in 2017, KuCoin had more than 30 million registered users in at least 207 countries and territories as of March 2024, court papers show.
“This resolution signifies a new chapter for KuCoin, one that reaffirms our dedication to compliance, security and innovation,” BC Wong, who was named KuCoin chief executive last week after serving as chief legal officer, said in a statement.
“We are focusing on strengthening our global compliance practices and exploring opportunities to reenter the market with the necessary licenses,” Wong added.
Alexander Wilson, a lawyer for Gan, in a statement said the resolution reflected his client’s lack of intent to violate U.S. law or be involved in money laundering, fraud and similar criminal activity.
David Meister, a lawyer for Tang, declined to comment.
In December 2023, KuCoin agreed to block New York users and pay $22 million to settle that state’s lawsuit accusing it of failing to register.
KuCoin is the world’s eighth-largest cryptocurrency spot exchange based on factors including traffic, liquidity and trading volumes, according to data company CoinMarketCap. Binance and Coinbase are among higher-ranking exchanges.
Bitcoin Futures Basis Turns Negative for First Time Since August 2023 After Nvidia Stock Drop and DeepSeek’s Market Disruption
Bitcoin futures basis turned negative for the first time since August 2023, following a sharp decline in Nvidia’s stock price, which affected the cryptocurrency market. K33 Research Director Vetle Lunde highlighted that the drop in Nvidia shares triggered a reaction in the crypto space, causing CME traders to hedge their risks quickly. This led to Bitcoin futures moving into negative territory for the first time in months. Futures basis, the difference between the price of a futures contract and the spot price of Bitcoin, is often seen as an indicator of market sentiment. A negative futures basis indicates a shift to a bearish outlook, with traders more willing to sell futures below the spot price due to heightened risk aversion. On top of this, open interest saw a significant decline of 17,225 Bitcoin in a single day.
The market’s bearish sentiment coincides with increasing concerns about global economic uncertainty, including the U.S. Federal Reserve’s interest rate policies, potential tariffs under the Trump administration, and the market turbulence caused by DeepSeek. DeepSeek, a China-based AI startup, unveiled a new model that reportedly competes with U.S. tech offerings at a fraction of the cost. This news sent shockwaves through the tech-heavy Nasdaq Composite, which fell by 3.1%.
With this added volatility, Bitcoin briefly dropped below $98,000 in overnight trading but found support above the $102,000 mark. The recent price swings are being driven more by broader risk-off sentiment rather than crypto-specific factors. Bitcoin’s movement seems to be influenced by the uncertainty around the Fed’s interest rate path and the possible ramifications of the DeepSeek announcement on the tech sector.
This week’s earnings reports from major tech companies like Meta, Microsoft, Tesla, and Apple are expected to add to the market’s volatility. Investors are particularly sensitive to competition in the AI sector following DeepSeek’s disruptive announcement. Analysts from QCP Capital suggested that the tech earnings could add further downside risk to assets like Bitcoin. Given these pressures, Bitcoin’s futures market is in a precarious state, with traders showing caution and expecting further volatility.
Despite these factors, U.S. equities displayed some resilience in pre-market trading, with S&P 500 futures rising by 0.12% and Nasdaq futures up by 0.24%. Some analysts remain optimistic about Nvidia, pointing to the potential long-term benefits from AI advancements, which could drive further demand for Nvidia’s chips. However, the short-term outlook for Bitcoin and other risk assets remains uncertain, with investors on edge as they await the impact of upcoming earnings reports and broader economic developments.
FOMC Holds Rates Steady: Implications for Crypto Markets
Just a few minutes ago, the Federal Open Market Committee (FOMC) announced its decision to maintain the federal funds rate within the 4.25% to 4.50% range, aligning with market expectations. The accompanying statement highlighted that “economic activity has continued to expand at a solid pace,” with a stabilized unemployment rate and “somewhat elevated” inflation.
Insights from Powell’s Press Conference
During the subsequent press conference, Federal Reserve Chair Jerome Powell provided further clarity on the Fed’s perspective:
- Economic Growth: Powell acknowledged the robust economic expansion, noting that recent indicators point to sustained growth.
- Labor Market: He emphasized the stabilization of the unemployment rate at low levels, indicating a strong labor market.
- Inflation Concerns: Despite positive economic indicators, Powell expressed concern over persistent inflation, which remains above the Fed’s 2% target.
- Policy Outlook: He reiterated the Fed’s commitment to data-driven decisions, stating that any future rate adjustments would depend on incoming economic data and the trajectory of inflation.
Market Reactions
The financial markets responded promptly to the Fed’s announcements:
- Equities: Major indices, including the S&P 500, experienced modest declines. The SPDR S&P 500 ETF Trust (SPY) closed at $600.75, down approximately 0.62% from the previous close, reflecting investor caution.
- Cryptocurrencies: Bitcoin (BTC) exhibited notable volatility. The cryptocurrency’s price dipped to an intraday low of $100,190 before rebounding to close at $103,693, marking a 1.09% increase for the day.
Analyst Perspectives and Predictions
Market analysts have weighed in on the implications of the Fed’s decision:
- Steven Cohen, founder of Point72 Asset Management, expressed concerns that the stock market may peak soon due to inflation pressures and uncertainties surrounding President Donald Trump’s policies on tariffs and immigration.
- The recent introduction of low-cost AI by Chinese startup DeepSeek has caused a significant shift in the stock market, impacting major companies heavily invested in expensive AI infrastructure and semiconductors.
Implications for Crypto Investors
Powell’s emphasis on persistent inflation and the Fed’s cautious approach to future rate adjustments suggest a complex landscape for crypto investors:
- Interest Rates: The decision to maintain current rates indicates the Fed’s focus on controlling inflation. Higher interest rates can lead to a stronger U.S. dollar, potentially exerting downward pressure on dollar-denominated assets like Bitcoin.
- Market Volatility: The crypto market’s sensitivity to macroeconomic indicators means that investors should brace for continued volatility as the Fed navigates its monetary policy objectives.
Strategic Considerations
In light of the current economic environment and the Fed’s stance:
- DO not long or short positions because you see a long green or red candle. You can easily get rekt when you over react to the market ‘s high volatility. The cards are stacked against your impulse to trade something… always
- Special caution with Long Positions: Refrain from initiating new long positions in cryptocurrencies until there is greater clarity on the Fed’s policy trajectory and its impact on market liquidity.
- Strategic Spot Limit Orders: Placing spot limit orders at key support levels can allow investors to capitalize on potential market dips, ensuring entry at favorable prices while managing risk effectively. I shared a number of spot signals at low strategic levels last week. Feel free to consider those, managing your risk tightly.
Conclusion
The Federal Reserve’s recent announcements underscore the importance of a cautious and informed approach to crypto investing. By staying attuned to macroeconomic developments and aligning strategies accordingly, investors can navigate the evolving landscape more effectively.
MicroStrategy Adds 10.1K Bitcoin to Holdings, Launches Preferred Stock Sale for Additional Buying Power
MicroStrategy (MSTR) brought its bitcoin holdings to 471,107 following another week of accumulating tokens. Alongside, the company announced a preferred share offering of roughly $250 million as it opened up a new front to raise money to purchase even more BTC.
The firm led by Executive Chairman Michael Saylor said that the Series A Perpetual Preferred Stock (STRK) will have a $100 liquidation preference. Each share of STRK is initially convertible into one-tenth of one share of Class A common stock at a conversion price of $1,000 per share of Class A common stock. In addition to an 8% cumulative preferred dividend, according to Saylor .
The announcement came after MicroStrategy increased its bitcoin holdings for the 12th straight week.
In the week ended Jan. 26, the company bought 10,107 BTC, taking its total stack to 471,107 BTC, Saylor wrote in a post on X. The purchase, at an average price of $105,596 per bitcoin, raised MicroStrategy’s overall average purchase price to $64,511.
Saylor teased the announcement on Sunday, as he has done in recent weeks, posting: ” Don’t stop thinking about tomorrow .”
On Jan. 21, MicroStrategy shareholders approved increasing the authorized number of Class A common shares to 10.3 billion from 330 million shares.
MicroStrategy also filed a mixed securities shelf registration that now includes: debt securities, preferred stock, warrants and depository shares in addition to Class A common stock.
UPDATE (Jan. 27, 13:21 UTC): Adds details on MicroStrategy’s mixed securities registration. UPDATE (Jan. 27, 13:40 UTC): Adds details on firm’s preferred share offering.
