Bitcoin's dramatic drop and recovery, Lens Protocol's permissionless shift, meme coin rallies, and Kraken's institutional challenge unfold.
Bitcoin Swings 7% After Hitting a High of $64,000

Bitcoin Swings 7% After Hitting a High of $64,000

Bitcoin's dramatic drop and recovery, Lens Protocol's permissionless shift, meme coin rallies, and Kraken's institutional challenge unfold.

Last update:
Feb 29, 2024
| Issue

Welcome to today’s edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

Bitcoin Swings 7% After Hitting a High of $64,000

Bitcoin took a wild ride, suddenly dropping 7% from a high of $64,000 down to $59,000, shaking up traders and catching many by surprise. After climbing past $60,000 for the first time since November 2021 and briefly hitting $64,037, Bitcoin's price took a sharp turn downwards to $59,400. It did bounce back a bit over $61,000, but not for long before another sell-off pushed it back down.

This plunge wasn't just a shock for Bitcoin holders. It sparked over $600 million in liquidations across the crypto market, hitting leveraged traders hard. The overall market felt the impact too, with the CoinDesk 20 Index, which tracks major cryptocurrencies, dropping almost 5% after reaching a new all-time high earlier that day. Big names like Ethereum, Solana, XRP, Cardano, Dogecoin, and Avalanche also saw their prices drop between 4% and 9% in just an hour.

To add to the drama, some Coinbase users found their accounts showing zero balances out of the blue. Coinbase is on it, looking into what happened. This day was a stark reminder of how quickly things can change in the crypto market, leaving traders and investors to navigate the highs and lows.

Lens Protocol Enters Permissionless Phase

Lens Protocol, a blockchain-based social media platform, has transitioned to a “permissionless” phase, allowing anyone to mint an on-chain NFT profile for a fee of 10 MATIC tokens or an equivalent credit card payment. Launched in May 2022 on the Polygon blockchain, Lens enables a decentralized, user-owned network where profiles as NFTs facilitate interactions within its ecosystem. 

This democratization of profile creation, previously limited to selected users, positions Lens in a competitive decentralized social media landscape, notably against Farcaster. Despite a more gradual move towards permissionlessness since its 2022 launch, Lens emphasizes its commitment to security, scalability, and developing a vibrant ecosystem.

PEPE and WIF Jump 50%, Ether and Sol Memecoins in Spotlight

Meme tokens PEPE and WIF surged 50%, highlighting the Ethereum and Solana ecosystems’ growth in the cryptocurrency market. This trend reflects an average 13% increase across meme coins in 24 hours, with PEPE and Dogwifhat (WIF) leading the gains. The rally, fueled by spot demand rather than futures liquidation, underscores meme tokens as speculative bets on blockchain ecosystem growth. Despite their perceived lack of intrinsic value, meme coins attract attention for their potential to profit from ecosystem growth, albeit with risks.

Kraken Launches Institutional Service to Challenge Coinbase

Kraken launches a new institutional service to challenge Coinbase’s dominance in Bitcoin ETF custody. With Coinbase holding about 90% of assets in this space, Kraken’s move aims to diversify the risk associated with relying on a single custodian. This comes as interest in spot bitcoin ETFs grows among traditional financial entities, with over 300,000 bitcoins under management in less than two months. 

Kraken’s initiative, Kraken Institutional, targets financial institutions, asset managers, hedge funds, and high net-worth individuals, seeking to capture a share of the rapidly expanding institutional crypto market and prepare for new entrants.

Other breaking news

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