Crypto Scoop: Bitcoin Dominates Headlines as Crypto Market Cap Soars to $2.5 Trillion

This week, the crypto space recorded significant price gains, driving the market cap to $2.5 trillion. In this edition of the Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• JP Morgan crypto market trend forecast
• Regulatory overview in Nigeria

Bitcoin Dominates Headlines as Crypto Market Cap Soars to $2.5 Trillion

In a dazzling display of market prowess, Bitcoin has reclaimed its position as a trillion-dollar asset, leaping into the top 10 list of the largest assets by market capitalisation. The premier cryptocurrency market cap places it ahead of past traditional giants like Berkshire and TSMC, leaving industry giants like Tesla, Visa, and JPM trailing in its rear-view mirror.

Crypto enthusiasts celebrate as bitcoin breached the $60,000 mark for the first time in over two years. The last time Bitcoin reached this level was in November 2021, shortly after achieving its all-time high. Ether also gained 14% between February 26 and February 28, reaching its highest level in almost two years at $3,484. Bitcoin's surge catalysed a broader market rally, with altcoins like SOL experiencing an 18% increase. The total cryptocurrency market cap reached an impressive $2.5 trillion, marking a milestone not seen in over two years. The bullish trend suggests a renewed and widespread investor confidence in the crypto market.

MicroStrategy, led by Bitcoin advocate Michael Saylor, reaffirmed its commitment to Bitcoin with another massive purchase. The company scooped up an additional 3,000 BTC at $51,813 each, amounting to a substantial $155 million investment. This move follows MicroStrategy's claim during their latest earnings call to be the largest corporate holder of bitcoin globally.

Since their debut on January 11, Bitcoin exchange-traded funds (ETFs) have accumulated a whopping 300,000 Bitcoin valued at $17 billion. The net inflow into these ETFs has surged past $6 billion, signalling a fervent embrace of Bitcoin in the investment landscape.

JPMorgan Forecasts Crypto Market Trends

JPMorgan Chase, a global investment bank, has identified three major factors influencing cryptocurrency prices in the near future. According to the bank's analysts, the anticipated Bitcoin halving event and the upcoming significant upgrade to the Ethereum network are already factored into current market valuations. The bank also highlights a renewed interest from retail investors as a critical driver behind the recent surge in popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

JPMorgan's global market strategist, Nikolaos Panigirtzoglou, suggests that on-chain data, considering the impact of new spot Bitcoin exchange-traded funds (ETFs), indicates a notable increase in activity from retail investors (small wallets) compared to institutional flows.

In their assessment, the JPMorgan team mentions, "We believe that the first two catalysts are largely priced in, while for the third catalyst, we only see a 50% chance." The third catalyst refers to the potential approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) in May. Although some market participants are optimistic about SEC approval, citing Standard Chartered Bank's stance, there isn't certainty as SEC Chairman Gary Ganser has not definitively stated that Ethereum is not a security.

Nigerian Central Bank Expresses Concerns About Binance Operations Amid Regulatory Scrutiny

The Central Bank of Nigeria (CBN) has raised apprehensions about the operations of Binance, a major cryptocurrency exchange, citing "suspicious flows" totalling $26 billion in 2023. Governor Olayemi Cardoso highlighted concerns about potential illicit financial activities and noted collaborative efforts between government agencies, including the Economic and Financial Crimes Commission (EFCC) and the police, to investigate the matter. Authorities are investigating Binance and certain crypto firms in connection with currency speculation and money laundering, expressing concerns about their impact on the national currency, the naira. 

The government has reportedly taken action against Binance due to worries about criminal activities on the platform.