Crypto Scoop: Bitcoin Rises to $100K as Ethereum Trades at $3,300

This week in crypto, Bitcoin bounced back to its previous $100,000 mark as competition intensified between the two stablecoin giants, Circle and Tether. In this edition of Crypto Scoop, we review the following:

• Price moves of top cryptocurrencies
• Tether’s cross-chain stablecoin and Cardano’s rally
• Global regulatory developments and adoption 
• Institutional breakthroughs in blockchain and finance

Price Moves of Top Cryptocurrencies

Bitcoin soared back up to $100,000 this week, reaching a peak of $104,000, leading to a 3.33% increase in the global cryptocurrency market capitalisation, now at $3.76 trillion. This rally came as institutional accumulation increased, with whales scooping up over 34,000 BTC following December’s price drops. Meanwhile, MicroStrategy continued its Bitcoin buying spree, adding another $243 million worth of BTC to its holdings, pushing its total reserves past 450,000 BTC.

Ethereum and Solana followed suit, trading at $3,300 and $215, respectively. Ethereum’s price rose by 2%, and Solana’s surged by 12%. However, not all metrics were bullish, as Solana’s decentralised application (DApp) volumes dipped by 10.3%, reflecting fluctuations in user engagement.

XRP stood out among altcoins, reaching a new all-time high of $3.39, surpassing its previous peak from 2018.

Tether Launches Cross-Chain USDT as Cardano Surges and USDC Gains Ground

Tether made headlines as it announced its relocation to El Salvador after acquiring a Digital Asset Service Provider (DASP) license from the country, highlighting El Salvador as a global crypto hub. In another significant move, Tether is partnering with LayerZero to launch USDT0, a cross-chain version of its stablecoin. This new implementation is designed to enhance interoperability, allowing seamless transfers of USDT0 across different blockchain networks. By leveraging LayerZero’s technology, Tether aims to improve transaction efficiency and reduce costs, making stablecoin usage more streamlined.

Meanwhile, Cardano (ADA) surged in price by 18% from last week, driven by increased accumulation from large investors. Whale activity has picked up, reflecting growing interest in Cardano’s long-term potential. This surge aligns with broader market movements as investor confidence in Layer-1 blockchain solutions continues to rise.

Stablecoin competition also intensified as Circle’s USDC outpaced Tether’s USDT in supply growth for 2024. USDC’s circulating supply saw a 78% increase year-over-year. Regulatory clarity and growing adoption have contributed to USDC’s recent expansion.

Ripple further strengthened its ecosystem with the RLUSD stablecoin, which is set to list on more exchanges. Initially available on platforms like Bitso and Bullish, RLUSD’s expansion aims to increase accessibility and utility across the digital asset landscape.

According to Lookonchain, a trader turned $2,137 into $3.2 million within 10 hours by trading the newly launched Hyperfy (HYPER) token. This extraordinary return highlights the continued excitement and volatility in the metaverse sector, where new projects can generate rapid gains.

Global Regulatory Developments and Adoption

In the United States, lawmakers are actively discussing the establishment of a strategic Bitcoin reserve. Senator Cynthia Lummis has sought clarification on the government's recent Bitcoin sales, questioning how they align with broader plans to integrate Bitcoin into national reserves. Meanwhile, Texas lawmakers have introduced a proposal to create a state-held Bitcoin reserve, reflecting the state’s ongoing commitment to cryptocurrency adoption and financial sovereignty.

Texas Senator Ted Cruz has reiterated his support for Bitcoin, highlighting its potential benefits for small businesses and as a hedge against inflation. He has called for a measured approach to regulation, emphasising that lawmakers must fully understand the technology before implementing restrictive policies.

In Europe, the Czech National Bank is considering adding Bitcoin to its foreign exchange reserves. Governor Aleš Michl has expressed openness to diversifying the country’s reserve assets, marking a potential shift toward greater institutional adoption of cryptocurrencies.

Intesa Sanpaolo, Italy’s largest bank, has purchased 11 Bitcoin for approximately 1 million euros ($1.02 million). This marks the bank’s first direct Bitcoin investment, highlighting a shift among traditional financial institutions toward incorporating digital assets into their portfolios.

Meanwhile, the Middle East is embracing asset tokenisation, with Dubai-based DAMAC Group partnering with blockchain platform MANTRA to tokenise $1 billion worth of real-world assets, including real estate and data centres. This initiative aims to bring greater transparency and efficiency to asset management while positioning the region as a leader in digital asset innovation.

Institutional Breakthroughs in Blockchain and Finance

The crypto-friendly trading platform eToro has confidentially filed for an initial public offering (IPO) in the United States. The company, which manages $11.3 billion in assets across 3 million accounts, aims to expand its presence in the U.S. financial markets. If successful, the IPO could value eToro at over $5 billion, further solidifying its position as a major player in retail trading and cryptocurrency investing.

The Thai government is launching a cryptocurrency payments pilot programme in Phuket, allowing tourists to pay with Bitcoin. The initiative aims to integrate digital currency into local transactions, providing an alternative payment option and enhancing digital finance in the country’s tourism sector.

Switzerland’s PostFinance, a state-owned bank with over 2.7 million customers, has introduced Ethereum (ETH) staking services. Clients can now stake as little as 0.1 ETH, making staking more accessible to retail investors. This move reinforces the growing integration of cryptocurrency services within traditional banking institutions.