Crypto Scoop: Happy Birthday, Bitcoin: 15 Years of Awesomeness

The crypto market experienced a general bullish run at the start of the year, with most top cryptocurrencies in the green before it saw a price drop. In this edition of the Crypto Scoop, you will get a comprehensive overview of the following:

• Bitcoin’s  15th Year Birthday 
• Global Crypto Adoption and Regulation Hurdles
• Season of Memecoins and Crypto NFTS

Bitcoin’s 15th Year Birthday

January 3rd remains a day to remember and celebrate a remarkable milestone in finance and technology. This year 2024, marks the 15th anniversary of Bitcoin. Over the past decade and a half, Bitcoin has transcended its origins as an obscure digital currency to become a groundbreaking financial asset. 

Bitcoin's journey from a value of mere cents to peaks of tens of thousands of dollars is a testament to the resilience and innovative spirit that underpins the cryptocurrency movement. It has opened the doors to an entirely new asset class and paved the way for many blockchain-based applications and currencies. 

After an impressive start to the year for Bitcoin at almost $46,000, a dramatic increase in volatility in the cryptocurrency market caused Bitcoin’s slip, which had a ripple effect on the market. Most altcoins followed suit, as is often when Bitcoin's price fluctuates wildly. 

Ethereum saw a steep drop of over 5% in 24 hours, barely above the $2,200 support level. BNB plunged rapidly from $330 to $300 before recovering slightly to around $319. 

Other significant altcoins like Ripple, Solana, Cardano, Avalanche, Dogecoin, Polkadot, Polygon, and Chainlink were hit even harder, recording double-digit losses approaching 11% in the case of Polkadot. 

There are a lot of expectations for Ethereum in 2024. On January 3, the Ethereum Name Service (ENS) token saw an 80% surge in value after public recognition and praise by Ethereum’s co-founder, Vitalik Buterin, who highlighted their importance and value in the grand scheme of the network’s plans.

With Bitcoin still dictating the tide, altcoins appear poised to continue tracking its price swings until the market settles. 

Currently, most traders are watching the anticipated Bitcoin Spot ETF approval by the SEC as it continues to gain buzz.  While some investment analysts believe it will be the gain changer for Bitcoin in 2024, famous real estate investor Robert Kiyosaki urged his followers on X to focus on the Bitcoin halving coming up in April instead. He also suggested precious metals like gold and silver as economically driven assets to focus on rather than speculative triggers.

Jim Cramer, former hedge fund manager and host of CNBC’s Mad Money, has become one of the biggest doubters turned advocates of Bitcoin. In a CNBC interview with CNBC's David Faber, he stated that "Bitcoin is a technological marvel, and I think people need to start recognising it's here to stay."

Global Crypto Adoption and Regulatory Hurdles

There is excitement over a spot bitcoin ETF approval for 2024. However, will it pull through?  Investment firm Matrixport anticipates that the US SEC will likely reject the current proposals for spot bitcoin ETFs. This stance is influenced by the SEC's majority Democratic commissioners and Chair Gary Gensler's cautious view of the crypto sector. 

On Wednesday, Fidelity took a procedural step towards listing shares by filing a Form 8-A, which is necessary for exchanges to list shares but does not guarantee product approval. While the market's expectations for an approved Bitcoin spot ETF have significantly boosted Bitcoin's value, this optimism may be dashed if the approval doesn’t pull through.

In Nigeria, Africa’s most prominent crypto participant, the Central Bank has detailed new regulations that permit cryptocurrency firms to access banking services, reversing a previous ban from February 2021. The new guidelines allow Financial Institutions (FIs) in Nigeria to engage in specific activities with Virtual Asset Service Providers (VASPs), including opening designated accounts, providing settlement accounts and services, facilitating foreign exchange flows and trade, and any other activities that may be authorised by the Central Bank of Nigeria (CBN) in the future without allowing the financial institutions participate. These permissions aim to integrate VASPs into the formal financial system, enhancing regulatory oversight and promoting the growth of the digital economy. 

Season of Memecoins and Crypto NFTS?

 The recent crypto market decline has impacted meme coins like Bonk (BONK), which has dropped over 10% amid the broader crash. However, some meme coins defy the downtrend, including the newly launched Sponge Token (SPONGE). 

Sponge Token has emerged as a rare bullish sign in the meme coin sector, rallying over 75% within its first few days of trading. The popular SpongeBob SquarePants cartoon inspires the token and has garnered significant interest and trading volume quickly after launch. Sponge Token's early success highlights that appetite remains strong among crypto traders for speculative meme coins, even while more established cryptocurrencies face selling pressure. The meme coin space continues to see new entrants attempt to replicate the breakout popularity of tokens like Dogecoin and Shiba Inu. 

As the crypto market matures, the future viability of meme coins remains uncertain. However, Sponge Token's gains indicate that the sector retains substantial momentum in the near term as investors seek potential moonshot returns.

In another meme story, the saga of Logan Paul's CryptoZoo NFT project highlights the need for creators to be more accountable when launching blockchain-based projects. Despite raising millions from investors, CryptoZoo failed to deliver on promised utilities and features, leading to a collapse in the value of its NFTs and native ZOO tokens. A year after pledging refunds, Paul has committed to buy back the NFTs. The debacle shows hype and celebrity endorsements aren't enough to sustain an NFT collection without real development and community engagement. 

As we enter 2024, Investors must be wary of supporting projects without proven stats to fulfil their roadmap. Crypto projects need transparency, reasonable expectations, and the willingness of founders to take responsibility when things go wrong. The CryptoZoo fallout is a lesson that accountability matters, especially in an industry still building trust, and it's commendable to see the founder take responsibility.

In this era of surging demand for digital assets, safeguarding your crypto wallet is paramount. The increasing value and popularity of cryptocurrencies make them attractive targets for cybercriminals. You must prioritise security measures such as enabling two-factor authentication and practising safe browsing habits to protect your investments. As the crypto space grows, personal responsibility for asset protection becomes more critical than ever.