Crypto Scoop: Bitcoin Rebounds At $43,000 Amid Price Gains

The crypto space recorded price gains this week amid crypto initiatives across the globe. In this edition of the Crypto Scoop, we review the following: 

• Price moves of top cryptocurrencies
• Stablecoin market cap growth
• Ethereum’s Sepolia testnet
• Crypto adoption and initiatives around the globe
• FTX’s refund plan for customers

Price Moves of Top Cryptocurrencies

Bitcoin surged past $43,000 this week, while Ethereum traded at $2,300. Meanwhile, Solana (SOL) has seen a strong week, rebounding from the $80 dip last week and reclaiming the $100 mark ahead of the Wednesday launch of the Jupiter (JUP) token.

In contrast, XRP has experienced a 5% price crash following a security breach that targeted Ripple's co-founder and executive chairman, Chris Larsen. According to crypto analyst ZachXBT, hackers stole approximately 213 million XRP, valued at around $112 million, from one of Ripple's wallets. 

Stablecoin Market Cap Climbs $4.85 Billion in 30 Days

Over the last 30 days, the stablecoin market has seen a substantial surge, witnessing a remarkable increase in combined market capitalisation from $131.71 billion to $136.56 billion. Tether (USDT), the leading stablecoin by market capitalisation, played a significant role in this growth, experiencing a 4.8% expansion in its supply, reaching $95.91 billion. Tether is now on the verge of achieving a milestone of 100 billion tokens in circulation, with just 4.09 billion tokens remaining.

Additionally, Circle's USD Coin (USDC), the second-largest stablecoin by market cap, outpaced USDT in growth during the same period, with a notable 7.2% increase in its supply. USDC's market capitalisation rose to $26.50 billion from $24.71 billion within the 30-day timeframe. The overall surge in stablecoin market capitalisation by $4.85 billion underscores the continued prominence and stability of these digital assets in the broader cryptocurrency landscape.

Ethereum Rolls Out A Successful Activation On the Sepolia Testnet

Ethereum is making significant strides towards the Dencun mainnet by successfully activating the Dencun upgrade on the Sepolia testnet. Unlike the earlier activation on the Goerli testnet, which faced a four-hour delay due to a bug, the Sepolia upgrade proceeded without incident on January 30. This marks a key step in the gradual implementation of the Dencun upgrade within the Ethereum ecosystem, bringing the protocol closer to its mainnet deployment. Ethereum educator Anthony Sassano highlighted the seamless activation on Sepolia, emphasising the progress of the multiple Ethereum Improvement Proposal (EIP) upgrade.

In a related development, analysts from Standard Chartered, a multinational bank, predict that Ethereum could surge to $4,000 by the end of 2024. The anticipated rise is attributed to potential approvals of Ethereum spot ETFs in the United States. Geoffrey Kendrick, Standard Chartered’s head of forex and digital assets research, points to May 23, 2024, as a crucial date when the SEC might approve these ETFs, drawing parallels to the timeline followed by Bitcoin ETFs. The analysts believe that regulatory approvals could play a pivotal role in Ethereum's price trajectory, marking a positive outlook for the cryptocurrency in the coming years.

Crypto Adoption And Initiatives Across The Globe

The United Arab Emirates (UAE) achieved a milestone as its central bank executed a groundbreaking cross-border digital dirham transfer, totalling 50 million dirhams ($13.6 million), via the mBridge central bank digital currency (CBDC) platform. Sheikh Mansour, the chairman of the Central Bank of the UAE, carried out the transaction, marking the golden jubilee celebration of the central bank's establishment. The mBridge platform, established in collaboration with China, Hong Kong, Thailand, and the UAE, facilitated this historic transfer to China, showcasing the platform's efficacy in cross-border CBDC transactions. Notably, mBridge involves multiple commercial banks from each participating nation, signifying a collaborative effort in advancing financial infrastructure and technology.

Meanwhile, China is gearing up for significant regulatory changes in its cryptocurrency landscape. Despite a 2021 blanket ban on crypto use, the country is set to revise its Anti-Money Laundering (AML) regulations by 2025 to incorporate cryptocurrency-related transactions. Prime Minister Li Qiang led discussions on the amended AML law during an executive meeting of the State Council on Jan. 22. This move reflects growing calls from policymakers to scrutinise the evolving crypto industry more closely. The upcoming revision marks the first substantial change to China's AML regulations since 2007 and responds to the challenges posed by technological advancements and the decentralised nature of cryptocurrencies.

FTX Bankruptcy Says Customers Will Probably Get 100% Of Their Money Back

FTX, the defunct cryptocurrency exchange, is anticipating a full recovery for its customers and creditors, committing to repaying them "in full" after its collapse over a year ago. The optimistic outlook has led the bankruptcy overseers to abandon plans for a potential relaunch of the exchange. FTX lawyer Andrew Dietderich, during a recent court hearing, clarified that while a 100% repayment is not a guaranteed outcome, it is considered an attainable objective, acknowledging the remaining challenges and risks involved. 

The proposed "full" recovery entails reimbursing customers based on the dollar value of their crypto assets at the time of the company's collapse, as US Bankruptcy Judge John Dorse ruled. However, potential disappointment may arise for some crypto traders, as the dollar value of their Bitcoin holdings at that time was significantly lower than current market values. Despite the hurdles, FTX expresses confidence in their strategy to provide customers with a complete reimbursement.