The Breakdown First Five - Tuesday, February 27, 2024

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

5. Blackrock’s Hyperliquidity

Blackrock’s Bitcoin ETF set a new volume record, trading $1.3B. This outperformed its previous best by 30%. IBIT capstoned the highest volume day for the nine new ETFs, which traded $2.4B between them. Larger than launch day for the first time. GBTC outflows were a record low at $22M, cut in half from the previous day. Blackrock’s volume didn’t convert into flows, which were ‘only’ $111M. Total inflows were still well above average, the largest we’ve seen in 2 weeks. 

4. Saylor Still on the Bid

Microstrategy has added another 3000 Bitcoin over the past two weeks, paying around $155M for a cost basis of $51,813. The company is now in the green by almost $4B. This month’s tranche is a large increase from January, when microstrategy only bought 850. The latest slug was financed by share sales, which have been ongoing since November and are being deployed as quickly as possible. 

3. Kwon Will Appeal Again

Do Kwon is once again appealing extradition to the US. A Montenegro court decided the matter for the second time last week, but his local lawyer has found grounds for appeal on this decision as well. He appears likely to miss the SEC fraud trial which is set to begin next month. Kwon’s lawyer told the US court that “numerous unanticipated mistakes” by local courts have caused the delay. 

2. Bitforex Closes Withdrawals

Yet another Hong Kong exchange appears to be insolvent as Bitforex shuts withdrawals and turns off their website. Around $56M was withdrawn from the exchanges hot wallets late last week. The exchange had a string of regulatory issues over the past year culminating in the departure of their CEO in January. At one point the exchange had massive volume, but questionable legitimacy. It seems that Bitforex was concentrated in a few altcoin markets. 

1. Bitcoin Rips to $57,000

Bitcoin rallied by more than 10% to hit new year-to-date highs of $57,000. We haven’t been at these levels since November 2021, long before any of the catastrophes of crypto winter had played out. We’re now about 20% away from all time highs, but very little Bitcoin has changed hands at these levels. We could be heading into unbounded price discovery very soon.