Crypto Scoop: Bitcoin Hits New ATH of $108K as ETH Drops to $3,200

This week, Bitcoin soared to a new all-time high of $108,000 while Ripple launched its highly anticipated USD-pegged stablecoin RLUSD. In this edition of Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Ripple launches RLUSD stablecoin
• Global regulatory developments and adoption
• Institutional breakthroughs in blockchain and finance

Price Moves of Top Cryptocurrencies

Bitcoin reached an impressive all-time high of $108,000 this past week before quickly dropping to $104,000 and eventually to $96,000 by the week's end. The brief rally sparked over $1.3 billion in liquidations, accompanied by a notable $600 million ETF inflow. Meanwhile, MicroStrategy further solidified its position as the largest corporate Bitcoin holder by acquiring 15,350 BTC for $1.5 billion at an average price of $100,386 per Bitcoin.

Additionally, U.S. Bitcoin ETFs have overtaken gold ETFs in assets under management (AUM) Bitcoin ETFs now manage $130 billion, slightly edging out gold ETFs at $128 billion. Grayscale’s Bitcoin Trust, however, experienced significant outflows exceeding $21 billion in less than a year. This is largely due to the emergence of new Bitcoin ETFs like BlackRock's IBIT. Despite this, Grayscale's Bitcoin Mini Trust ETF surpassed $1 billion in net inflows, now managing over $4 billion in assets.

Ethereum continues to make headlines as well, with its whale activity driving bullish sentiment. A recent report highlighted that 104 whale wallets now hold a massive 57% of all ETH, signalling strong confidence among major holders. Additionally, liquid staking protocols saw massive growth, with total value locked (TVL) skyrocketing to $17.26 billion, reflecting the DeFi sector's increasing utility. Meanwhile, Ethereum's Layer-2 solutions are thriving, with Deutsche Bank announcing plans to build a compliance-focused Layer-2 blockchain using ZKsync.

Solana had another amazing week, with decentralised applications (DApps) generating $365 million in November, largely led by the memecoin boom. This momentum has carried into December, as the network's activity continues to attract developers and users alike, further solidifying its status as one of the fastest-growing ecosystems in the crypto space.

Ripple Launches RLUSD as Trader Turns $27 into $52M in Memecoin Surge

Ripple has officially launched its USD-pegged stablecoin, RLUSD, marking a significant milestone for the company. RLUSD is fully backed by U.S. dollar deposits, government bonds, and cash equivalents, ensuring stability and compliance. The introduction of RLUSD is expected to enhance liquidity within the Ripple ecosystem and may positively impact XRP's utility as the stablecoin integrates into Ripple's cross-border payment solutions.

Meanwhile, Tether, the issuer of USDT, has invested in Malta-based stablecoin firm StablR. This strategic move comes amid evolving regulatory frameworks in Europe, particularly with the full implementation of the Markets in Crypto-Assets (MiCA) regulation on December 30. StablR operates euro-backed (EURR) and U.S. dollar-pegged (USDR) stablecoins powered by Tether's Hadron platform for seamless tokenisation and secure asset management.

In a landmark event, a trader made headlines after transforming a $27 investment into $52 million through the Pepe (PEPE) memecoin. These impressive profits highlight the high-risk, high-reward nature of memecoin investments not only in the memecoin market but in the crypto market at large.

Global Regulatory Developments and Adoption

In Africa, South Africa has taken a major step forward by issuing 248 licenses to crypto asset service providers (CASPs) out of 420 applications. This milestone demonstrates the Financial Sector Conduct Authority’s (FSCA) commitment to establishing a secure and transparent regulatory framework.

In the United States, President-elect Donald Trump met with Kris Marszalek, CEO of Crypto.com, to discuss blockchain and digital asset regulation. The meeting aligns with the administration’s efforts to engage industry leaders in shaping a forward-thinking regulatory framework that focuses on fostering innovation while addressing compliance challenges.

Over in Europe, the European Securities and Markets Authority (ESMA) has published its final guidance for the Markets in Crypto-Assets (MiCA) regulation, aiming to harmonise crypto rules across member states. Alongside this, euro-backed stablecoins like Circle’s EURC have gained significant ground, now dominating 91% of the European stablecoin market. These developments underscore the region’s effort to foster a compliant and thriving crypto ecosystem.

In Latin America, El Salvador has modified its Bitcoin policies to align with a $1.4 billion loan deal from the International Monetary Fund (IMF). Key changes include making Bitcoin usage by businesses voluntary and ceasing its use for tax payments. These adjustments aim to strike a balance between sustaining El Salvador’s Bitcoin experiment and addressing international concerns over financial stability.

Meanwhile, European Parliament member Sarah Knafo has expressed reservations about the digital euro, citing concerns over privacy and financial sovereignty. As an alternative, she has advocated for the European Union to establish a strategic Bitcoin reserve, highlighting Bitcoin's decentralised nature and potential as a hedge against inflation.

Institutional Breakthroughs in Blockchain and Finance

In the corporate sector, Hilbert Group, a Nasdaq-listed digital asset manager, has acquired Liberty Road Capital, a renowned digital asset management firm. This strategic acquisition aims to expand Hilbert Group's capabilities in the crypto market, enhancing its service offerings to institutional clients. 

Additionally, Hilbert Group has partnered with Xapo Bank to launch the Xapo Byzantine BTC Credit Fund, a Bitcoin-denominated fund designed to generate institutional-grade yields for clients holding substantial Bitcoin balances.

Meanwhile, the automotive industry is witnessing increased integration of cryptocurrencies, with several dealerships now accepting Bitcoin as a payment method. This development offers consumers the option to purchase vehicles using digital assets, reflecting the growing acceptance of cryptocurrencies in mainstream commerce.

In the realm of digital wallets, the Xaman Wallet, a self-custodial wallet built for the XRP Ledger ecosystem, has reported a 250% increase in active weekly users since the summer. This surge is attributed to XRP and anticipation of Ripple's upcoming USD-pegged stablecoin, RLUSD, indicating heightened interest and activity within the XRP ecosystem.