Crypto Scoop: BTC Soars To $49,000 After Bitcoin ETF Approval

As the eagerly anticipated Bitcoin ETF approval emerges, the crypto landscape witnesses significant price gains and noteworthy developments. In this edition of the Crypto Scoop, we delve into the following highlights:

• The long-awaited approval of Bitcoin ETFs
• Circle's filing for IPO
• Vitalik Buterin's proposal for a gas limit increase
• The strategic partnership between Coinbase and Yellow Card
• X (Twitter) NFT profile removal.

Bitcoin ETF Approval Spurs Price Gains

On Monday, Bitcoin experienced a tumultuous ride, surging 6.63% to $47,130 and marking a 10% increase since January 1. On January 9, chaos ensued as the official SEC Twitter account (now X) posted a false tweet claiming approval for spot Bitcoin ETFs. The confusion led to market turmoil, prompting an SEC investigation into the "compromised" tweet. The Safety team at X revealed that the SEC did not enable two-factor authentication (2FA) on its main X account, allowing hackers to gain unauthorised access.

This led to a rollercoaster for Bitcoin prices, dropping to $44,200, surging to almost $48,000, and then settling under $46,000. As a result of the SEC's announcement and the subsequent market volatility, the crypto market suffered $218 million in liquidations, with over $56 million in Bitcoin trades liquidated in just one hour, according to Coinglass. 

Despite the Twitter debacle, the U.S. Securities and Exchange Commission officially approved the first regulated spot Bitcoin exchange-traded funds (ETFs) on January 10. This historic move paved the way for 11 ETFs from major players like BlackRock, Grayscale, and Fidelity. However, SEC Chair Gary Gensler reiterated the agency's non-endorsement of Bitcoin, emphasising its speculative nature compared to precious metals.

Bitcoin soared to $49,000, and on the first day of trading for newly launched Bitcoin exchange-traded funds (ETFs) recorded total volumes exceeding $4.5 billion. BlackRock's iShares Bitcoin Trust (IBIT) emerged as the top performer, handling over $1 billion in volume, constituting 22% of the total volume across 10 spot Bitcoin ETFs.

Crypto investors found themselves in extreme greed for the first time since November 2021. The Crypto Fear and Greed Index currently sits at 76/100, signalling heightened enthusiasm among investors. This level of greed was last observed during Bitcoin's all-time high, and it once again occurred with the launch of the first Bitcoin Futures ETF in the US.

Multinational bank Standard Chartered predicts a bullish future for Bitcoin, estimating a potential value of nearly $200,000 by the end of 2025. This projection hinges on the success of U.S.-listed spot Bitcoin ETFs, with the bank anticipating inflows between $50-100 billion.

Circle, Issuer of USD Coin Files for IPO in the US

Circle Internet Financial, the powerhouse behind USD Coin (USDC), the second-largest stablecoin globally, has reportedly made a discreet move by confidentially filing for an initial public offering (IPO) in the United States.

On January 11, according to a report from Reuters, Circle's decision to go public aligns with its strategic vision of transitioning into a publicly traded entity. However, the company has maintained a level of secrecy, not disclosing the proposed price range for its IPO or the quantity of shares it intends to sell.

Circle's IPO filing hinges on the US Securities and Exchange Commission's (SEC) completion of the review process. The company has expressed confidence in the progression of its IPO plans, with the provision that the outcome remains contingent on prevailing market conditions.

Vitalik Buterin Calls for 33% Gas Limit Boost in Ethereum

In a recent Ask-Me-Anything (AMA) session on Reddit, Ethereum co-founder Vitalik Buterin advocates for a "modest" 33% increase in the Ethereum gas limit, aiming to enhance the network's overall throughput.

During the Ethereum Foundation's research team's 11th AMA on January 10, Buterin highlighted the unprecedented stagnation in the Ethereum gas limit, which has remained unchanged for nearly three years. Notably, this marks the longest period of inactivity in the protocol's history.

"Honestly, I think doing a modest gas limit increase even today is reasonable," expressed Buterin during the AMA, emphasising the need for an adjustment to accommodate the evolving demands on the Ethereum network. Making calculations during the AMA, Buterin suggested elevating the gas limit to approximately 40 million. Currently, the gas limit stands at 30 million, as reported by Etherscan, making Buterin's proposed adjustment a 33% increase.

Coinbase and Yellow Card Forge Partnership to Expand Financial Inclusion in  Africa

Cryptocurrency exchange Coinbase has entered into a strategic partnership with Yellow Card. The collaboration focuses on enhancing accessibility to USD Coin (USDC) through the integration of Yellow Card's payment infrastructure.

The integration facilitates seamless on and off-ramping between fiat and digital assets. The partnership includes the integration of Yellow Card's Payments API, complemented by the new Widget, offering improved transaction options in local currencies. This enhancement provides businesses like Coinbase with an improved platform for offering digital asset services to their customers.

Yellow Card customers will be able to transfer and receive USD Coin (USDC) using Coinbase's Base chain, a Layer 2 solution promising faster transaction speeds and lower fees compared to the ERC-20 network.

Chris Maurice, co-founder and CEO of Yellow Card, expressed enthusiasm about the transformative power of stablecoins in Africa, stating that the partnership with Coinbase aims to empower the next one billion people across the continent to participate in the future of finance.

X (Twitter) Removes NFT Profile Picture Support from Premium Subscription Page

X, the social media giant formerly known as Twitter, has reportedly eliminated support for nonfungible tokens (NFTs) from its premium subscription page. The removal comes after two years of featuring profile picture support for NFTs, with the change noted as of January 1.

At the beginning of the year, X's premium subscription page highlighted support for NFTs, allowing premium subscribers to showcase their own NFTs through hex-shaped profile pictures. The support page explained the process: "After a temporary connection to your crypto wallet that allows you to set up an NFT as your profile picture, your digital asset displays in a special hexagon shape that identifies you as the owner of that NFT."

However, as of the latest update, NFTs have been removed from X's premium support page, signalling a departure from the NFT profile picture feature for premium subscribers. The exact reasons behind the removal remain undisclosed, leaving the community to speculate on whether this shift reflects changing trends, user preferences, or other considerations by X in its premium subscription features.