Bitcoin Tops $100,000 and the Future of Crypto Regulation_blog

06 Dec, 2024

Bitcoin Tops $100,000 and the Future of Crypto Regulation

Bitcoin has made headlines globally, reaching an all-time high of $103,850—a milestone eagerly awaited by crypto enthusiasts. This rally, which has seen Bitcoin rise more than 45% since the recent US elections, is attributed to a combination of factors, including institutional interest, global endorsements, and most notably, the anticipated shift in crypto regulations under Paul Atkins, the new chair of the U.S. Securities and Exchange Commission (SEC).

The Role of Paul Atkins in Bitcoin’s Rise

The appointment of Paul Atkins, a vocal proponent of cryptocurrency, as the SEC’s new leader has been a significant catalyst for this upward trend in Bitcoin’s price. Atkins replaces Gary Gensler, whose strict stance on crypto regulations has been viewed as a hindrance to industry growth. Former U.S. President Donald Trump, who has taken a pro-crypto position, announced Atkins' appointment, sparking widespread optimism in the crypto community.

Pro-XRP lawyer John Deaton and Ripple CEO Brad Garlinghouse have both lauded the change in leadership, hoping that Atkins will bring about a balanced regulatory framework that nurtures innovation while safeguarding investors. Deaton has called for significant reforms within the SEC, including the removal of officials aligned with Gensler's aggressive stance on crypto regulation and a restructuring of the SEC’s crypto unit.

Bitcoin ETFs and Institutional Confidence

Atkins’ arrival coincides with another major boost for Bitcoin: BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), which recently surpassed $50 billion in assets under management in just 228 days. The fund’s rapid growth reflects growing confidence from institutional investors, further solidifying Bitcoin’s position as a legitimate investment. Over $1.6 billion flowed into the ETF in a single week, demonstrating how crypto-friendly policies can drive institutional interest.

Global Support and Bitcoin’s Rising Influence

Bitcoin’s acceptance extends beyond institutional investors. It is gaining traction globally, with figures like Russian President Vladimir Putin praising the cryptocurrency’s resilience. He noted that Bitcoin’s decentralized nature makes it difficult to ban and highlighted its potential to reduce costs and increase reliability in financial systems.

Bitcoin’s market cap has surged past $2 trillion, positioning it alongside giants like Alphabet and Amazon. With increasing demand, Bitcoin futures are seeing an uptick, and some analysts predict Bitcoin could hit $120,000 by the end of the year.

A Bright Future for Bitcoin

As Bitcoin continues to break records, the industry's eyes remain fixed on Paul Atkins’ leadership at the SEC. His pro-crypto stance promises to reshape the future of digital currencies, aligning with global trends and institutional backing. With Bitcoin’s rise and the shifting regulatory landscape, the future of cryptocurrency has never looked more promising.

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09 Dec, 2024

Total Crypto Liquidations Climb to $1.5 Billion After Bitcoin Dips Below $95,000

Quick Take① Nearly 514,400 traders experienced liquidations totaling $1.51 billion, among them $1.38 billion were long positions with $136.7 million in short positions liquidated.② Bitcoin briefly dipped to $94,900 around 4:00 p.m. ET (21:00 UTC) before rising back to the $97,400 area.Crypto liquidations broke past $1.5 billion within the past 24 hours as the price of bitcoin retreated from the $100,000 level.Total crypto liquidations climb to $1.5 billion after bitcoin dips below $95,000Nearly 514,400 traders experienced liquidations, among them $1.38 billion were long positions with $136.7 million in short positions liquidated, according to data from the crypto data tracker Coinglass as of 4:43 p.m. ET (21:43 UTC).Total liquidations for bitcoin and ethereum, respectively, reached $163.4 million and $204.7 million within the past day.Bitcoin briefly dipped to $94,900 around 4:00 p.m. ET (21:00 UTC) before rising to $97,395 at publication time.Monday's liquidations follow the $1.1 billion in total crypto liquidations on Dec. 5, which had been the largest amount of liquidations since December 2021, due to large holders experiencing "leverage flush."Bitcoin surpassed $100,000 for the first time ever on Dec. 4 after a weeks-long rally following the election of Donald Trump as the 47th President of the United States and reached an all-time high of $103,679.

04 Dec, 2024

Ripple’s RLUSD Stablecoin: Here’s What You Need to Know Before Launch

Once RLUSD is available, Ripple plans to use both RLUSD and XRP in its cross-border payments solution.Ripple is preparing to launch its United States dollar-pegged stablecoin Ripple USD (RLUSD). The cryptocurrency community highly anticipates the launch, which is expected on Dec. 4.According to Fox Business, Ripple is expected to launch RLUSD on Dec. 4, following approval by the New York Department of Financial Services.The blockchain firm has cautioned against tokens claiming to be RLUSD or Ripple USD until an official announcement confirms the launch.Preview listings of RLUSD have already appeared on major cryptocurrency data providers, including CoinGecko and CoinMarketCap.RLUSD will initially launch on Ripple’s XRPL and EthereumIntroduced in June, RLUSD is a 1:1 US dollar-backed stablecoin 100% backed by US dollar deposits, short-term US government Treasurys and other cash equivalents.Since early August, the RLUSD stablecoin has been in beta testing on Ripple’s decentralized public blockchain platform, the XRP Ledger (XRPL), and the Ethereum mainnet. Ripple said it plans to expand RLUSD to additional blockchains and decentralized finance (DeFi) protocols over time.While RLUSD is yet to launch, Ripple Labs-linked XRP (XRP) has been rallying in the past weeks, reemerging as the third-largest coin by market cap in early December.RLUSD and XRP will “complement each other”Once RLUSD is available, Ripple plans to use both RLUSD and XRP in its cross-border payments solution to serve its global customers, the company said in RLUSD’s beta testing announcement.In June, Ripple president Monica Long also said that RLUSD was built to be “complementary and additive” to XRP.According to some sources, Ripple sees RLUSD as “beneficial” for XRP as RLUSD and XRP will be paired with each other.While XRP will help add liquidity to RLUSD with its significant availability on exchanges, the stablecoin’s price will also be stabilized by pairing to prevent depegging.RLUSD will be more focused on large institutional playersAccording to Ripple Labs CEO Brad Garlinghouse, RLUSD will focus more on large institutional players.“We think there’s an opportunity for another player in the stablecoin market to exist that focuses on institutions, focuses on compliance,” Garlinghouse said in a conversation with Token Relations co-founder Jacquelyn Melinek recorded in September 2024.He also mentioned that Ripple has already used stablecoins in its payment flows, minting 20% of Circle’s USD Coin“Obviously, there was a big event last spring in the US, 18 months ago, where USDC depegged, and we felt like there was an opportunity for a credible player that’s already working with lots of financial institutions to lean into that market,” Garlinghouse added.While Garlinghouse hinted that RLUSD would mainly focus on institutions, some users reported being able to add the stablecoin on the self-custodial XRP wallet Xaman on Dec. 4.While Ripple has not yet issued the RLUSD stablecoin, Xaman users can already set up Trustlines to prepare for its eventual issuance, Xaman chief operating officer Robert Kiuru told Cointelegraph.“Trustlines are straightforward to set up — they can theoretically be created for any asset, but that doesn’t provide confirmation or context about the issuance or availability of RLUSD itself,” he added.