Crypto Scoop: Bitcoin Hits $71,000 and ETH Soars to $3,700 Amid Price Gains

Amid exciting price gains, the crypto space records remarkable milestones. In this edition of the Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Ethereum’s milestones and ETF discussions
• Crypto initiatives and regulations across the globe. 

Price Moves of Top Cryptocurrencies

The cryptocurrency market experienced a significant surge overnight, adding $150 billion in value as Bitcoin (BTC) and Ethereum (ETH) reached 10-day peaks. This surge propelled the total crypto market cap to over $2.8 trillion as Bitcoin's price surpassed $71,000. Ethereum also saw substantial gains, nearing the $3,700 mark, while altcoins like Dogecoin (DOGE) and Shiba Inu (SHIB) recorded increases of 7% each. Bitcoin's upward momentum suggests the possibility of closing its seventh consecutive month in the green, a milestone never before achieved in its history.

Simultaneously, the realm of Bitcoin exchange-traded funds (ETFs) witnessed remarkable growth, with four ETFs, including BlackRock's IBIT and Fidelity's FBTC, securing positions among the top 30 asset funds globally within just 50 days of trading. This underscores the escalating institutional interest in cryptocurrencies, as evidenced by Goldman Sachs' Asia Pacific division observing a spike in interest for crypto options among its institutional clients.

Meanwhile, Robert Kiyosaki, the author of "Rich Dad Poor Dad," adjusted his Bitcoin price prediction, foreseeing the cryptocurrency hitting $100,000 by September, citing the nearing halving event as a contributing factor. Kiyosaki also announced his plans to purchase more Bitcoin in anticipation of this bullish trajectory. El Salvador's President Nayib Bukele revealed that the country had bolstered its Bitcoin holdings to nearly $400 million, showcasing its commitment to embracing cryptocurrencies. This move further emphasises the growing acceptance and adoption of digital assets globally.

Adding to the intrigue, a significant Bitcoin address, the fifth richest in holdings, transferred $6 billion worth of BTC to three new wallets over the weekend. Following years of dormancy since its initial funding in 2019, this transfer occurred amidst heightened institutional interest in Bitcoin, potentially influenced by the impending halving in April.

Ethereum attains milestones amid discussions on Ethereum ETFs

In the ever-evolving landscape of cryptocurrency, Ethereum has been a focal point of discussions and developments across various fronts.

Firstly, BlackRock CEO Larry Fink's recent insights on a potential Ethereum exchange-traded fund (ETF) highlight growing interest in expanding investment opportunities beyond Bitcoin. Despite regulatory scrutiny, Fink expressed confidence in the feasibility of launching an Ethereum ETF. Craig Salm, Chief Legal Officer at Grayscale, echoed this sentiment, suggesting that the SEC's engagement with spot Bitcoin ETF applicants bodes well for Ethereum ETF approval, emphasising that the SEC has already engaged with issuers during the application process.

Meanwhile, Ethereum attained a milestone as Google integrated Ethereum Name Service (ENS) domains into its search results, allowing users to view wallet balances directly, thereby simplifying crypto transactions. ENS domains provide human-readable addresses for Ethereum wallets, enhancing accessibility and usability. Ethereum's network growth is evident in its surge in validator numbers, nearing one million active validators. This milestone underscores the network's robustness and security, further bolstering confidence in Ethereum's capabilities.

However, Ethereum founder Vitalik Buterin has raised concerns about decentralisation, particularly regarding validator operations. He proposed modifying the penalty system to incentivise physical decentralisation and discourage the centralisation of validator operations. He recommended higher penalties for large stakes or pools controlling multiple validators to mitigate the risk of correlated failures, thereby promoting a more decentralised network architecture.

Crypto Initiatives and Regulations Across the Globe

Indonesia is gearing up to regulate the crypto landscape by introducing a regulatory sandbox aimed at curbing fraudulent investments in crypto assets. The Indonesian Financial Services Authority (OJK) announced plans to implement this sandbox by early 2025, requiring local financial institutions to participate or make way for testing new products and services, including crypto-asset offerings. Hasan Fawzi, overseeing financial sector technology innovation supervision, emphasised the sandbox's role in evaluating and approving crypto firms before they can operate in the country, ultimately aiming to eradicate fraudulent practices in the crypto space.

The London Stock Exchange is making significant strides in integrating cryptocurrencies into traditional financial markets. It has set a launch date of May 28 for Bitcoin and Ethereum exchange-traded notes (ETNs), with applications opening on April 8. The exchange's decision aims to maximise issuer participation on the first trading day, conditional upon approval from the Financial Conduct Authority (FCA) for base prospectuses. This move signifies a growing acceptance and integration of cryptocurrencies within mainstream financial systems.