Crypto Scoop: Bitcoin Falls Below $70k Amidst Mixed Reactions in the Market

Compared to Bitcoin's all-time high of $73k some days ago, the broader crypto market is down, with Bitcoin dropping below $67k. In the latest edition of Crypto Scoop, let's explore the following highlights of the crypto market. 

• Price Moves of Top Cryptocurrencies 
• Sam Bankman-Fried Sentenced to 25 Years in Prison 
• Coinbase Partners with Lightspark for Bitcoin Lightning Network 
• Ripple to Launch a Stablecoin Pegged to the U.S. Dollar 

Price Moves of Top Cryptocurrencies

As of April 1, 2024, the valuation of the crypto economy stood at $2.61 trillion, following a widespread increase before the month's onset. However, as the week progressed, it experienced a significant decline, losing $110 billion in value and dragging the total crypto market cap to $2.5 trillion.

As a result, Bitcoin dropped from $71000 to $66,000, Ethereum moved from the $3,700 mark to $3200, BNB was at $570, and XRP reached $0.57 over the week. XRP depreciation wasn't as severe as other top altcoins like Ethereum and Solana due to the recent news of Ripple launching its stablecoin. 

Despite this downturn, some assets experienced notable increases, with CORE soaring by 174% and WIF climbing by 50.5% earlier in the week.  Further information from Nasdaq revealed that spot BTC ETF outflows have also decreased, with GBTC recording net outflows of $81.9 million on April 2, down from $302.6 million on April 1.
The world's largest stablecoin issuer also bought an extra 8,889 BTC valued at around $627 million, bringing its Bitcoin holdings to 75.354K BTC. According to data compiled by Arkham Intelligence, Tether continues to double down on its ownership of the most prominent cryptocurrency, with an overall $5.26 billion worth of reserves.

Coinbase Partners with Lightspark for Bitcoin Lightning Network 

In a recent development, Coinbase announced it will partner with Lightspark to integrate the Lightning Network into its crypto exchange. Lightspark, in a press release, provided more details about the partnership, stating it was excited to enter a coalition with the prominent crypto exchange. 

"We're delighted to be part of bringing one of our industry's most impactful and significant companies to Lightning at the perfect time," Lightspark noted. 

Bitcoin transactions have been slow compared to other blockchains and financial networks over the past years. Thus, the Bitcoin Lightning Network solves scalability issues by making transactions more efficient and fast. Lightspark's introduction of this technology to Coinbase means users will experience faster and more cost-effective Bitcoin transactions. 

On the other hand, Coinbase will get to focus on its core or primary services while Lightspark handles the node management. Lightspark's duty in this collaboration is to eliminate the complexities of implementing and managing a Lightning node. Moreover, they will deploy their SDKs and Lightspark Predict to optimise liquidity and speed up transaction routing. 

The new integration ensures that users can benefit from an intuitive interface while accessing the best services. Coinbase's primary duty in the coalition will be to provide excellent end-to-end customer experiences. At the same time, Lightspark manages and optimises a large-scale Lightning implementation. 

Sam Bankman-Fried Sentenced to 25 Years in Prison 

In a new development, Sam Bankman-Fried was sentenced to around 25 years in prison after the legal tussle concerning the downfall of the FTX exchange ended. U.S. District Judge Lewis Kaplan delivered the judgment while accusing the former FTX CEO of not offering a word of remorse throughout the proceedings of the legal issue. Most of the charges leading to the conviction were based on fraud, money laundering, and large-scale financial conspiracies. 

The downfall of the once prominent crypto exchange led to nearly $8 billion in losses from customers, creditors, and investors. In some of the messages he exchanged with ABC News, Sam Bankman-Fried said he didn't know what he was doing was illegal. 

"I never thought that what I was doing was illegal. I tried to hold myself to a high standard, and I certainly didn't meet that standard," he said in one of the messages. Salame, the former co-CEO of FTX Digital Markets, is the next person among the former FTX executives to face sentencing in May.

Ripple to Launch a Stablecoin Pegged to the U.S. Dollar 

Meanwhile, the crypto community received another batch of good news after Ripple revealed in a press release that they will launch their stablecoin. This stablecoin will be pegged to the U.S. Dollar and is set to compete with others like the USDT and USDC. According to the crypto company, the USD stablecoin will be 100% backed by U.S. dollar deposits, short-term U.S. government treasuries, and other cash equivalents.  

Brad Garlinghouse, Ripple CEO, said it was part of their plans to bridge the gap between the crypto industry and traditional finance. "This move is also monumental for the XRP Ledger community, driving more use cases, liquidity, and opportunities for developers and users," he added. 

According to the details provided, the Ripple stablecoin will initially launch the XRPL and Ethereum blockchain before expanding to other DeFi protocols. Furthermore, it is expected that they launch the stablecoin before 2024 ends. In their statement, Ripple boasts that their stablecoin will stand out in the market judging by their compliance-first approach, multi-chain compatibility, and transparent reserve.