Crypto Scoop: Bitcoin Trades at $102,000 as Ethereum Hits $4,000

This week in crypto, Bitcoin briefly dropped to $95,000 before bouncing back to an impressive $102,000. Ethereum hit $4,000, with Solana trading at $220. Meanwhile, Ripple secured regulatory approval for its RLUSD stablecoin, and global regulatory updates highlighted progress in digital assets. In this edition of Crypto Scoop, we cover:

• Price moves of top cryptocurrencies
• Ripple’s stablecoin gains approval
• Global regulatory developments and adoption
• Institutional breakthroughs in blockchain and finance

Price Moves of Top Cryptocurrencies

Bitcoin remained a focal point this week, dropping to $95,000 before spiking back up to $102,000, with whale activity driving momentum. One whale address acquired 1,000 BTC worth $101 million within hours, signalling continued confidence in the asset. Meanwhile, MicroStrategy further expanded its Bitcoin reserves, now holding over 423,650 BTC valued at approximately $41.5 billion, reaffirming its bullish stance on the cryptocurrency.

Ethereum reached $4,000 earlier in the week before dropping slightly to $3,800. ETH recorded record-breaking inflows into spot ETFs, adding $1.17 billion since late November. On-chain activity also surged by 24%, indicating that institutional and retail interest in Ethereum remains robust as the blockchain solidifies its role in decentralised finance and beyond.

Solana climbed over $230 after briefly falling to almost $200, marking a significant 13% weekly gain. The network's ecosystem is thriving, with zero-knowledge rollups enhancing scalability and privacy and its total value locked (TVL) rising to $9.5 billion. This, coupled with the enthusiasm around the Layer-1 solution, continues to grow Solana into a favourite among developers and investors alike.

The cryptocurrency market shows no signs of slowing, with key assets maintaining resilience despite market fluctuations. As 2024 unfolds, these price moves set the stage for an exciting year ahead.

Ripple’s RLUSD Stablecoin Gains Approval Amid Tether’s Rising Global Recognition

Ripple made waves after achieving a major milestone this week. CEO Brad Garlinghouse announced that the New York Department of Financial Services (NYDFS) granted final approval for its USD-pegged stablecoin, RLUSD. Designed to streamline cross-border payments, RLUSD will be backed by USD deposits and short-term US Treasury bonds. Exchange and partner listings are expected soon, setting the stage for Ripple to maybe even possibly challenge established players like Tether’s USDT and Circle’s USDC in the competitive stablecoin market.

Speaking of which, Tether’s USDT received a significant boost with official recognition from the Financial Services Regulatory Authority of Abu Dhabi Global Market (ADGM). This approval allows regulated financial firms to integrate USDT into their offerings, further bolstering the region’s ambitions to become a global hub for digital finance.

Meanwhile, Paxos CEO Charles Cascarilla highlighted the transformative potential of stablecoins at the Bitcoin MENA 2024 conference. He emphasised how these digital assets enhance the global utility of the US dollar, providing 24/7 access and driving financial inclusion for unbanked populations.

These developments underscore the growing significance of altcoins and stablecoins in shaping the future of blockchain technology and global finance.

Global Regulatory Developments and Adoption

In the United States, the Supreme Court dismissed Nvidia’s appeal to halt a class-action lawsuit, allowing the case to proceed. The lawsuit alleges Nvidia misrepresented over $1 billion in crypto mining-related revenue, leading to significant stock losses. This legal battle underscores the growing scrutiny of corporate transparency in the cryptocurrency sector.

In Alabama, State Auditor Andrew Sorrell proposed the creation of a state Bitcoin reserve. Sorrell believes this initiative could attract businesses and improve financial resilience. He highlighted Bitcoin's potential to diversify the state’s financial strategy, positioning Alabama as a leader in cryptocurrency adoption.

In Canada, Vancouver made a bold move to establish itself as a Bitcoin-friendly city. The City Council approved a motion to explore integrating Bitcoin into its financial operations, including potentially creating a Bitcoin reserve and enabling Bitcoin payments. While the motion received significant support, critics expressed concerns over environmental and regulatory challenges tied to Bitcoin mining.

In Australia, regulators continue to tighten their grip on the cryptocurrency space. AUSTRAC has launched a specialised task force to enforce compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, particularly targeting crypto ATM providers. Non-compliant entities face severe penalties, reflecting Australia’s commitment to securing its financial system against illicit activities.

In El Salvador, the government is negotiating a $1.3 billion loan with the International Monetary Fund (IMF), prompting changes to its Bitcoin policies. Modifications include making Bitcoin acceptance optional for businesses and implementing measures to address the national budget deficit. Despite these adjustments, El Salvador reported unrealised gains on its Bitcoin holdings, amounting to $471 million, reaffirming its commitment to its Bitcoin experiment. The country also strengthened its partnership with Argentina to enhance regional digital asset oversight.

In Asia, Japan is gearing up to launch its first cryptocurrency-backed credit card in 2025. Developed by Slash Vision Labs in partnership with a domestic credit card issuer, the card aims to integrate cryptocurrency payments into everyday transactions. Features like “Pay-to-Earn” airdrops promise unique opportunities for both global and local crypto users.

Meanwhile, India’s central bank governor, Shaktikanta Das, outlined a vision for the country’s central bank digital currency (CBDC), the digital rupee. The focus is on creating a scalable and inclusive digital payment system that complements India’s existing infrastructure while promoting financial inclusion.

These global developments highlight a dynamic interplay between regulatory oversight and the adoption of innovative financial solutions as countries navigate the integration of digital assets into mainstream finance.

Institutional Breakthroughs in Blockchain and Finance

In the energy sector, PermianChain Technologies has identified a $16 billion opportunity by utilising gas flaring for cryptocurrency mining. By converting excess natural gas into energy for mining operations, this approach addresses environmental concerns and creates a new revenue stream for energy producers.

In the gaming industry, the Beam Foundation has launched a $150 million gaming fund in Abu Dhabi. This initiative aims to support blockchain-based gaming projects and foster innovation and development within the region's gaming ecosystem.

In the travel sector, Travala, a cryptocurrency-focused travel agency, has introduced a treasury reserve plan in Bitcoin (BTC) and its native token, AVA. This strategy is designed to strengthen Travala's financial foundation and accelerate growth, providing additional resources to achieve long-term goals.

In the payments industry, Floki has partnered with Mastercard to launch a debit card available in 31 European countries. The card supports multiple cryptocurrencies, including Bitcoin (BTC), Ether (ETH), and Floki Inu (FLOKI), enabling users to make payments seamlessly across the region.

In Latin America, Canadian fintech firm Nuvei has collaborated with Visa to introduce stablecoin payment settlements for merchants. This blockchain-based solution aims to provide faster cross-border transactions and improved operational liquidity, enhancing the payment infrastructure in the region.

These developments highlight the growing institutional adoption of blockchain technology across diverse sectors, paving the way for innovative applications and enhanced financial systems.