Crypto Scoop: Bitcoin Hits $63,000 as Louisiana Leads the Charge in Crypto Adoption

As market activity picks up, the global crypto space is buzzing with key developments in regulation, adoption, and blockchain innovation. In this week’s Crypto Scoop, we explore:

• Price moves of top cryptocurrencies.
• Solana and Tether’s milestones 
• Louisiana’s recognition of crypto payments
• Puma’s dive into Web3 Gaming and more.

Price Moves of Top Cryptocurrencies

This week, Bitcoin (BTC) soared to $63,000, while Ethereum (ETH) traded at $2,460, and Solana (SOL) surged by 5.7% to approximately $138. These price swings have reflected the growing interest and market activity in top cryptocurrencies.

Anthony Scaramucci, founder of SkyBridge Capital, is feeling optimistic about Bitcoin's potential. Scaramucci recently suggested that Bitcoin could reach $100,000 by the end of the year, driven by increased institutional adoption and market momentum.

In line with this optimism, MicroStrategy has announced its third debt offering of 2024, aiming to raise $700 million to purchase even more Bitcoin. This was announced shortly after MicroStrategy’s acquisition of 18,300 BTC, which increased its BTC holdings to approximately 244,800 BTC.

Meanwhile, institutional interest in Bitcoin remains strong. BlackRock's iShares Bitcoin Trust ETF (IBIT), which recently recorded a $15.8 million inflow after weeks of inactivity, is a prime example of growing confidence in Bitcoin ETFs​. Alongside BlackRock, Fidelity’s Bitcoin ETF also saw a massive inflow of $56.6 million, contributing to renewed bullish sentiment​.

Tether, Circle and Solana Attain Notable Milestones

This week, Tether (USDT) continues to strengthen its hold on the stablecoin market, with its market share now surpassing 75%, up from 55% two years ago. With a USDT supply reaching $118 billion, Tether remains a critical bridge between fiat currencies and cryptocurrencies. Additionally, its recent expansion has included significant developments in compliance and transparency.

Meanwhile, Circle, the issuer of USDC, is making waves by moving its headquarters to New York and preparing for a potential IPO. Circle’s CEO also predicted that stablecoins would soon gain mainstream adoption, especially with more regulatory clarity on the horizon.

In other developments, Solana is making waves beyond blockchain technology with the upcoming launch of its second crypto-focused smartphone. Following the first Saga phone, this new device will further integrate Web3 functionalities, empowering customers to seamlessly interact with decentralised applications (dApps) and manage their digital assets on the go. With improved accessibility to the Solana ecosystem, this innovation could push Solana even further ahead in the rapidly evolving Web3 landscape​​.

Recent Developments in Global Cryptocurrency Regulation and Adoption

In the U.S., Louisiana took a groundbreaking step by becoming the first state to accept cryptocurrency for state services. The inaugural crypto payment, processed through the Bitcoin Lightning Network, was used to pay a fine issued by the Department of Wildlife and Fisheries. This initiative marks a significant step towards integrating digital assets into government services. State Treasurer John Schroder emphasised the importance of this move, saying, "The acceptance of cryptocurrency represents the future of payments and modernisation of financial services".​ The initiative aligns with global trends such as El Salvador’s decision to adopt Bitcoin as legal tender and signals a growing acceptance of digital assets as viable payment solutions for governments.

Argentina's newly elected president, Javier Milei, known for his pro-Bitcoin stance, has sparked global interest. Milei’s victory is expected to accelerate crypto adoption in Argentina, where inflation and currency devaluation have driven citizens to seek alternatives. Charles Hoskinson, the founder of Cardano, highlighted the importance of Bitcoin in stabilising Argentina’s economy as he plans to meet with the newly elected President to discuss how blockchain can rewrite global economic and political systems.

Similarly, Australia has embarked on its own digital currency journey, with the Reserve Bank of Australia launching a three-year pilot program to explore the viability of a wholesale Central Bank Digital Currency (CBDC). This initiative underscores how central banks worldwide are beginning to explore digital currencies to improve financial efficiency and security​.

In East Asia, South Korea and Hong Kong continue to be at the forefront in the region for crypto adoption, with South Korea leading in terms of cryptocurrency value received, at approximately $130 billion. The country's regulatory framework is evolving, facilitating rapid market growth and attracting institutional investment. As a leader in blockchain technology, South Korea's progress in the crypto space is emblematic of how regional markets are advancing and setting the stage for wider adoption​.

However, with this global rise in adoption, the risks of scams and fraudulent activities are also increasing. This week, India's Supreme Court addressed a high-profile Ripple (XRP) scam linked to hacked YouTube accounts, highlighting the need for vigilance. As more individuals and governments adopt digital currencies, it becomes crucial to stay informed and educated about the risks involved. To that end, learning about crypto security is essential, and you can explore more about how to protect yourself from scams through The Yellow Card Academy.

Puma Joins Web3 Gaming Revolution, While AI Enhances Blockchain Security with Google Cloud and Orderly Network

This week saw some exciting moves that reflect how brands and tech giants are shaping the future of digital spaces. Puma, a household name in the fashion industry, has teamed up with UNKJD Soccer to step into the Web3 gaming world. This partnership goes beyond just brand presence; it taps into the potential of blockchain technology to offer exclusive digital collectables that fans and players alike can interact with. Puma’s leadership has made it clear that this isn’t just a one-off move but part of a larger strategy to engage with consumers in more meaningful and futuristic ways. They see Web3 as an exciting new frontier where the brand can create memorable, immersive experiences that resonate with a global, digital-first audience.

On the tech side of things, Orderly Network’s collaboration with Google Cloud is another major highlight. Together, they’ve introduced an AI-powered bounty programme designed to tackle one of the biggest concerns in decentralised finance: security. Executives from both companies have highlighted the importance of this collaboration, with Orderly Network’s leadership expressing optimism about how AI can help stay ahead of potential threats. Google Cloud’s involvement, of course, brings its significant tech expertise into the mix, and the programme reflects their shared commitment to making blockchain systems more robust. This initiative could very well set a new standard for security in DeFi, attracting more customers and institutions by giving them the confidence that these platforms are both safe and efficient. 

But that’s not all—Donald Trump also made headlines this week by showing his support for Bitcoin at a New York City bar. The former U.S. President, known for his influence and bold moves, was spotted endorsing Bitcoin as part of a casual public display. This has sparked discussions about the mainstream acceptance of cryptocurrencies, particularly when prominent figures like Trump are seen embracing digital currencies.

SEC tackles fraud while stakeholders demand more clarity on regulations. 

This week, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against two fake cryptocurrency exchanges in its first case targeting a “pig butchering” scam. This type of fraud lures victims through fake investment schemes before draining their funds.

Meanwhile, the legal case against Sam Bankman-Fried, former CEO of FTX, took a new turn. Bankman-Fried, convicted of multiple counts of fraud, has filed an appeal against both his conviction and his sentencing, arguing that errors during his trial contributed to the outcome.

Adding to the pressure on regulators, a group of Republican lawmakers is demanding that SEC Chair Gary Gensler provide clarity on the regulatory treatment of crypto airdrops. The lawmakers argue that the lack of clear guidance on airdrops—where free tokens are distributed to crypto users—creates uncertainty for both companies and investors. This demand for regulatory transparency is part of a broader effort to ensure that the SEC’s approach to cryptocurrencies doesn’t stifle innovation while protecting market participants​.

The ongoing regulatory uncertainty is further underscored by the SEC’s ongoing case with Coinbase, as the exchange challenges the classification of certain cryptocurrencies as securities. These developments highlight the complex and evolving relationship between regulators, investors, and the crypto industry. The SEC requested an extension until February 2025 to produce documents related to its case. This delay is part of the ongoing discovery process, as Coinbase challenges the SEC’s classification of certain cryptocurrencies as securities​.