Crypto Scoop: Bitcoin Nears $70,000 as Top Cryptocurrencies Trade in Green

This week, the crypto space recorded significant price gains alongside exciting milestones and initiatives. In this edition of the Crypto Scoop, we review the following:

• Price Moves and Predictions of Top Cryptocurrencies
• Tether and Ripples' milestones
• FBI's warning on crypto-related scams
• Global crypto initiatives and more.

Price Moves and Predictions of Top Cryptocurrencies

This week, Bitcoin saw a significant price surge, as it soared near the $70,000 benchmark, while Ethereum traded at $3,300. CryptoQuant reports that Bitcoin investors are increasingly moving their assets out of crypto exchanges. This is accompanied by a daily increase in new BTC addresses, suggesting a positive signal for a potential price increase and stabilisation in the future. 

U.S. spot bitcoin exchange-traded funds (ETFs) experienced net outflows of approximately $18.3 million, contrasting with the inflows seen in their Ethereum counterparts. Blackrock’s IBIT recorded the most significant gains, while Grayscale’s GBTC faced the largest losses. Despite these outflows, Blackrock’s IBIT holdings increased to 342,658.96 BTC, valued at over $22 billion.

Meanwhile, Goldman Sachs CEO David Solomon acknowledged Bitcoin's potential as a store of value similar to gold, although he remains cautious about its speculative nature. In a recent CNBC interview, Solomon emphasised Bitcoin’s underlying blockchain technology, which he believes could help digitise the financial system and reduce friction. 
Adding to the bullish sentiment, Microstrategy’s executive chairman, Michael Saylor, made a bold prediction about Bitcoin's future price. At a recent Bitcoin conference, Saylor projected that by 2045, Bitcoin’s price could range from a bear case of $3 million to a bull case of $49 million, with a base case of $13 million. He emphasised Bitcoin’s role in revolutionising the global economy and advocated for its adoption as a primary treasury asset for economic stability and wealth accumulation.

Tether Attains Record-Breaking Profits In First Half of  2024

Tether Holdings has announced a record-breaking net profit of $5.2 billion for the first half of 2024, marking a significant milestone for the company. According to its recently released second-quarter attestation, conducted by global independent accounting firm BDO, Tether reported a net operating profit of $1.3 billion in the second quarter alone, the highest quarterly profit in its history. This surge in profitability primarily stems from investments in traditional asset classes, particularly US Treasuries, which have boosted Tether’s direct and indirect ownership to over $97.6 billion.

This substantial amount positions Tether’s treasury holdings above those of prominent countries such as Germany, the UAE, and Australia, ranking it 18th globally in terms of US debt ownership. Notably, Tether now stands 3rd in purchases of 3-month US Treasuries, following only the UK and the Cayman Islands. This remarkable achievement underscores Tether’s growing influence and strategic investment capabilities within the global financial landscape.

Meanwhile, Ripple is making strides in the tokenisation of tangible real-world assets. Ripple has allocated $10 million to tokenised US Treasury bills on the XRP Ledger, marking the first issuance of such tokens on the platform. This initiative is part of a broader trend within the crypto industry, where traditional financial securities are being tokenised to enhance efficiency and attract major participants like BlackRock. The tokenised short-term US government debt, issued as TBILL tokens by the tokenisation platform OpenEden, represents a significant step in merging traditional finance and blockchain technology.

FBI Issues Urgent Warning About Crypto Exchange-Related Scams

The Federal Bureau of Investigation (FBI) has issued an urgent warning to cryptocurrency users about a surge in scams involving fraudsters posing as employees of cryptocurrency exchanges. These scammers use unsolicited messages or calls to deceive victims into revealing sensitive information.

According to the FBI, these fraudsters create a false sense of urgency, claiming that there are issues with the victim's account or that it has been compromised. They then instruct the victims to provide login details, click on malicious links, or share personal identification information. Once the scammers obtain this information, they gain access to the victim's account and steal their funds. The FBI urges all cryptocurrency users to remain vigilant and to verify any unsolicited communications purportedly from their exchange. 

Remember, Yellow Card legitimate employees will never ask for your login details, passwords, or personal identification information through calls or messages. Customers can verify any suspicious links through our verification system and learn more about identifying scams on the Yellow Card Academy. 

Recent Developments in Global Cryptocurrency Regulation and Adoption

Bank of Russia Governor Elvira Nabiullina recently announced that the digital ruble, Russia’s central bank digital currency (CBDC), is expected to become an integral part of everyday life by 2031. Speaking at the Federation Council, Nabiullina highlighted the advantages of the digital ruble, such as free transfers for individuals and reduced transaction fees for businesses. Additionally, Russia plans to launch international cryptocurrency payments by the end of the year to navigate Western sanctions, with the central bank working closely with various ministries and businesses to facilitate this initiative.

In the European Union, the implementation of the Markets in Crypto Assets (MiCA) bill marks a pivotal moment for crypto regulations. The European Central Bank has partnered with Crystal Intelligence for blockchain analytics and is preparing to roll out this comprehensive regulatory framework. This will make the EU the first jurisdiction with a holistic approach to regulating digital assets with the aim of enhancing market stability and investor protection.

Meanwhile, in Latin America, a Binance survey revealed that more than half of the region's cryptocurrency users consider crypto a long-term investment. Polling 10,000 users from Argentina, Brazil, Colombia, and Mexico, the survey found that 50.3% prefer to use cryptocurrency as a savings and investment tool rather than for daily trading. This highlights the growing trend of Latin American investors looking to hedge against inflation and diversify their portfolios through digital assets.

The Central Bank of Brazil is also making strides in crypto regulation, aiming to finalise the regulatory framework for virtual asset service providers (VASPs) by early 2025. The institution plans to conduct a second public consultation to refine the drafts based on market participants' feedback, ensuring the regulations are tailored to local needs.

Following the collapse of FTX and Terraform Labs, The Bahamas has introduced the Digital Assets and Registered Exchanges Act 2024 (DARE 2024) to prevent similar disasters. This new law imposes stringent regulations on businesses providing custody of digital assets, requiring appropriate procedures to separate and insulate client holdings from the business’s estate.

In the United States, the University of Wyoming has launched a Bitcoin Research Institute to produce high-quality, peer-reviewed publications about Bitcoin from all academic disciplines. Dr. Bradley Rettler, the institute’s director, emphasised the need for informed research and criticised previous work for its lack of fundamental understanding of Bitcoin. The institute aims to elevate the academic study of Bitcoin and contribute to the broader knowledge base surrounding digital currencies. 

Meanwhile, Republican Senator Cynthia Lummis has proposed establishing a $67 billion strategic Bitcoin reserve to bolster the US dollar's position as the global reserve currency. Announced at the Bitcoin 2024 Conference in Nashville, Lummis believes diversifying into Bitcoin will secure the dollar’s dominance and drive financial innovation.

Trump's Bitcoin-Themed Sneakers Sell Out, Resell Prices Soar

Former US president Donald Trump's Bitcoin-themed sneakers have sold out swiftly after their release on July 31. Priced at $499 per pair for pre-order, all 1,000 pairs of the bright orange sneakers were gone within hours. Despite being marketed on the Trump Sneakers website, it is clarified that the sales are not connected to his political campaign for the White House.

In addition to the sold-out Bitcoin-themed sneakers, the site offers other models, including black high-tops and orange low-tops, both priced at $299. A select few of these sneakers, 15 black high-tops and 4 orange low-tops will feature Trump's signature.

The demand for these sneakers has driven their resale prices on platforms like eBay to as high as $2,500, with sellers promising delivery between September and November.