Bitcoin Bounces Back: Regaining the $40K Mark

• Crypto Market Update: Slight Upward Movement with Bitcoin Surpassing $40,000
• Standout Cryptocurrencies
• Nexo Files Claim Against Republic of Bulgaria
• Trump-Branded Crypto Wallet Swells Over $1 Million
• Bitcoin Futures Contracts Experience Decline

Crypto Market Update: Slight Upward Movement with Bitcoin Surpassing $40,000

The cryptocurrency market demonstrated a cautious upward tick today as Bitcoin$42,260 -0.64% moved beyond the $40,000 mark. After suffering a drop below $39,000 on Tuesday-a nearly 20% decline from its peak following the launch of the first spot Bitcoin ETFs in the U.S two weeks ago-Bitcoin has now climbed up to $40,370.

Standout Cryptocurrencies

Solana$104 5.03%'s SOL and Avalanche's AVAX outshone the broader market today, gaining roughly 8.5% and 11.5% respectively. Additionally, the 20 Index, a liquid index tracking the most capitalized tokens, has increased around 3% in the last 24 hours.

Nexo Files Claim Against Republic of Bulgaria

In other news, cryptocurrency lender Nexo has lodged an arbitration claim against the Republic of Bulgaria, seeking $3 billion in damages. The company alleges the country has engaged in "wrongful and politically motivated actions... relating to unjustified and oppressive criminal investigations. Nexo argues these investigations damaged its brand and reputation, causing it to miss out on important business opportunities, such as a potential initial IPO in the U.S. The Bulgarian Prosecutor's Office concluded its investigation into Nexo for alleged money laundering offenses in December due to lack of evidence of criminal behaviour.

Trump-Branded Crypto Wallet Swells Over $1 Million

Meanwhile, a crypto wallet bearing Donald Trump's name reportedly holds over $1 million of a TRUMP meme coin, having been worth only $7,100 upon receipt. Though Trump has no direct involvement in the issuance of this token, some are speculatively betting on the token in line with his ongoing presidential campaign. Data reveals that the tokens had a market capitalization exceeding $85 million on Wednesday.

Bitcoin Futures Contracts Experience Decline

The notional open interest or the dollar value tied up in the number of active Bitcoin futures contracts on the Chicago Mercantile Exchange has decreased by almost $1.5 billion since the commencement of spot ETFs in the U.S. According to Reflexivity Research, this decline symbolizes the unwinding of long bets on ETF approvals and entities employing BITO/CME futures as a liquidity bridging tool leading into the ETF launches.

Edited by Jonathan Stoker