Crypto Scoop: Bitcoin Hits $65,000 as Institutional Adoption Accelerates 

This week, Bitcoin rebounded impressively, soaring to $65,000. In this edition of the Crypto Scoop, we delve into:

• Bitcoin’s price gains and predictions
• The clash between Tether and Ripple CEOs
• Crypto initiatives across Africa and more.

Bitcoin Sees Major Gains and Bold Predictions Amidst Institutional Adoption

This week, Bitcoin's price surged to $65,400, while Ethereum traded at $2,900, reflecting growing investor confidence. Onchain Bitcoin analyst Willy Woo forecasts BTC to reach $1 million within the next decade, envisioning it as a future reserve currency. Woo anticipates a dramatic shift in the financial landscape, potentially purging corruption. Woo's optimistic outlook aligns with other prominent BTC advocates like Jack Dorsey, who foresee the crypto asset surpassing the million-dollar mark by 2030. 

The Bitcoin network recently adapted to lower fees and a reduced hashrate following its latest halving. The three-day simple moving average shows the hashrate has decreased to about 550 exahash per second (EH/s), a 19.7% drop from its all-time high of 685 EH/s on April 24, 2024. Despite this, onchain costs have significantly reduced, with transaction fees now ranging from $1.50 to $3.65.

Global asset management firm Alliance Bernstein maintains a bullish outlook, predicting Bitcoin will rise to $150,000 by 2025. Analysts Gautam Chhugani and Mahika Sapra see the recent price correction as a healthy market adjustment, with strong inflows into spot bitcoin exchange-traded funds (ETFs) and increased corporate bitcoin investments signalling a robust market cycle.

Institutional interest in Bitcoin continues to grow, exemplified by Wells Fargo's recent investment in Bitcoin ETF products. The third-largest bank in the U.S. disclosed a $143 million investment across three Bitcoin investment products, primarily through the Grayscale Bitcoin Trust (GBTC). This move marks a significant shift from the bank's 2018 stance when it temporarily banned crypto credit card purchases, highlighting Bitcoin's rapid adoption and increasing acceptance among traditional financial institutions.

Tether and Ripple CEOs Clash Over USDT Amid Regulatory Scrutiny

Tether CEO Paolo Ardoino and Ripple CEO Brad Garlinghouse have publicly clashed over Garlinghouse's comments regarding the regulatory scrutiny of Tether's stablecoin, USDT. The exchange began after Garlinghouse mentioned during a recent interview that the U.S. government is targeting Tether, which led Ardoino to label Garlinghouse as an "uninformed CEO" spreading fear about USDT.

Ardoino's response on social media platform X accused Garlinghouse of inciting uncertainty amid an ongoing U.S. Securities and Exchange Commission (SEC) investigation into Ripple. Ardoino emphasized Tether's commitment to providing financial services to unbanked communities in developing regions and underscored Tether's rigorous transparency and regulatory compliance, including adherence to OFAC/SDN lists and collaborations with Chainalysis and international law enforcement to combat illicit activities.

Garlinghouse clarified his comments, stating that his remarks were not an attack on Tether but a reflection on the broader regulatory focus on major stablecoin issuers. He acknowledged Tether's significant role in the crypto ecosystem, stressing that his point was about the U.S. government's intent to increase oversight of USD-backed stablecoins, with Tether being a primary target due to its market dominance.

Crypto Initiatives, Growth and Regulation Across the Globe

In a notable move, Kenyan President William Ruto has appointed U.S.-based Bitcoin miner Marathon Digital to review Kenya's cryptocurrency regime. This consultancy role will involve discussions with the Kenyan Energy Ministry about electricity usage in cryptocurrency mining. This marks a significant policy shift from the previously stringent approach of the Central Bank of Kenya (CBK) and other government entities, indicating a more open stance towards cryptocurrency under Ruto's administration.

Meanwhile, El Salvador continues to lead in crypto transparency with the launch of a new treasury holdings site by its Bitcoin Office (ONBTC). This site, a custom instance of the popular block explorer mempool space, allows the public to verify the nation's bitcoin holdings, confirming the purchase of one bitcoin per day. El Salvador, the first country to adopt Bitcoin as legal tender, now holds nearly 5,750 BTC, valued at approximately $360 million. This initiative underscores the Bukele administration's commitment to transparency and sustained bitcoin investment.

In Ghana, Vice President Mahamadu Bawumia has announced ambitious plans for the country to become the first in Africa to adopt blockchain technology across its government operations. Speaking at the 14th Commonwealth Regional Conference, Bawumia emphasized the potential of blockchain to make government data tamper-proof and combat corruption. He highlighted the goal of fully integrating government databases by the end of the year, drawing inspiration from countries like Estonia.
On the regulatory front, the U.S. Senate has passed a joint resolution calling for the Securities and Exchange Commission (SEC) to strike down its Staff Accounting Bulletin No. 121. This rule requires financial institutions to keep customers' digital assets on their balance sheets with maintained capital, which critics argue stifles innovation. The resolution passed with a 60 to 38 vote, signalling bipartisan disapproval of the SEC's rule. Despite President Joe Biden's intent to veto the bill to protect investors and safeguard the financial system, the Senate's vote reflects growing support for cryptocurrency among lawmakers and the public, particularly young voters.