Bitcoin is once again on the ascendency, having seen a 17 per cent price rise since Tuesday’s flash crash.
The cryptocurrency was boosted by news from El Salvador that it will be recognised as legal tender in the Central American country, with other countries in the region giving hints that they might follow suit.
There appears to be positive momentum on Thursday, though the market still appears to be hanging in the balance.
Analysts and experts are divided over whether the latest jump will put bitcoin back on its record-breaking run that it has enjoyed so far in 2021, or whether it is just a blip on the way to more losses.
You can follow all the latest news, analysis and price predictions right here.
$160bn asset management firm enters crypto market
Yet another multi-billion dollar asset management company has announced plans to enter the cryptocurrency space.
Victory Capital, which manages nearly $160 billion in assets, established exclusive agreements with Nasdaq and crypto-focussed asset manager Hashdex in order to launch a private fund for accredited investors that will track the Nasdaq Crypto Index (NCI).
“We continually strive to provide our clients with the forward-thinking choices they want and believe cryptocurrency is a viable asset class that can be part of a well-diversified portfolio,” said Mannik Dhillon, CFA, CAIA, President, VictoryShares and Solutions.
“By investing in a portfolio designed to track the NCI, investors can seek returns that align with the cryptocurrency market in a diversified manner, gaining exposure to multiple digital assets as this market continues to evolve and mature. We are actively considering other vehicles and wrappers to bring these capabilities to a broader set of investors.”
Anthony Cuthbertson10 June 2021 11:31
El Salvador president plans 100% green bitcoin mining
More positive news coming out of El Salvador this morning, this time relating to bitcoin’s environmental impact.
President Nayib Bukele has instructed the head of the country’s state-owned geothermal electricity company to offer facilities for bitcoin mining, to allow the cryptocurrency to be created using 100 per cent renewable energy.
“This is going to evolve fast!” he tweeted.
Engineers are reportedly already working on designs for the project, while mining firms appear to be keen to offer any help they can in setting up rigs.
Anthony Cuthbertson10 June 2021 09:18
Dogecoin founder asks new GameStop chairman to accept crypto
One of the co-founders of dogecoin has asked the new chairman of fellow meme asset GameStop to begin his new tenure by accepting payments in the cryptocurrency.
Billy Markus tweeted new GME boss Ryan Cohen to “plz add dogecoin to purchase stuff online”.
GameStop’s share price rose sharply following the announcement of Cohen’s new tenure, and is once again approaching the record highs it reached in January this year. The price of dogecoin also rose by around 10 per cent in the hours after the news, though this may also be a reflection of bitcoin’s recovery.
Anthony Cuthbertson9 June 2021 20:18
Could other countries follow El Salvador?
El Salvador may be the first to adopt bitcoin, but many are betting that it won’t be the last.
Several other countries in Latin America could soon follow suit, with politicians in Argentina, Brazil, Mexico, Panama and Paraguay all expressing an interest in the cryptocurrency.
There are numerous obvious benefits to formally recognising bitcoin as legal tender, such as slowing inflation, enticing crypto entrepreneurs, and increasing financial inclusion of those forgotten by the formal economy. But there are also some risks that come with it – not least incurring the wrath of the US.
You can read the full story here:
Anthony Cuthbertson9 June 2021 17:33
Bitcoin price back above $35,000
The price of bitcoin has just crossed back above the $35,000 mark, up nearly $5,000 since yesterday’s lows.
The cryptocurrency is still down by around 6 per cent, week-on-week, but it represents a solid bounce back from the flash crash that hit the whole market at the start of this week.
It’s also still a long way off the $64,000 price peak that bitcoin saw in mid April, but zooming even further out, it’s up by nearly 300 per cent year-on-year.
Anthony Cuthbertson9 June 2021 13:57
‘A new step for bitcoin global adoption’
What does El Salvador’s landmark ruling actually mean for bitcoin, cryptocurrency, and the global financial system?
We’ve heard from Ross Middleton, chief financial officer of decentralised ethereum exchange DeversiFi to hear his thoughts on the implications of this milestone.
He says it may be easy to dismiss this ruling as not significant, given that the El Salvador GDP is only $27 billion, but the ruling could signal “a new step for bitcoin global adoption” and is “huge” for ordinary Salvadorians who may not have access to traditional financial services.
Anthony Cuthbertson9 June 2021 12:37
The Bitcoin Law in full
The president of El Salvador, Nayib Bukele, has shared the full text of the Bitcoin Law.
It states: “The purpose of this law is to regulate bitcoin as unrestricted legal tended with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out… Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service.”
In a peculiar twist, this part of the law means that Tesla will be forced to accept bitcoin as a form of payment when selling cars in El Salvador – just over a month after rejecting the cryptocurrency.
Anthony Cuthbertson9 June 2021 11:21
El Salvador formally adopts bitcoin as legal tender
This is big news for bitcoin. The congress of El Salvador has passed a law that will officially make the cryptocurrency legal tender in the country.
The Bitcoin Law is aimed at improving financial inclusion, while also enticing crypto entrepreneurs to the Central American country. Being classed as a currency means it won’t be subject to capital gains tax.
The decree will take effect in 90 days.
Bitcoin’s price bounced back 5 per cent on the positive news.
Read the full story here.
Anthony Cuthbertson9 June 2021 09:16
Bitcoin price faces ‘moment of truth’
His model foresaw bitcoin’s massive price gains and predicted a peak of $288,000 for this current cycle. While his model allows for price corrections, the scale of this current dip is proving a major test.
Right now, the market could be following similar patterns to the 2013 and 2017 bull runs – or it could be about to replicate the patterns seen in the subsequent “crypto winter” crashes.
If bitcoin falls any lower, or remains at this price for much longer, PlanB said it could be a “death cross” for the cryptocurrency.
In a poll of his half a million Twitter followers today, PlanB asked if bitcoin’s price would bounce back or cross this potential point of no return. The response favoured a bounce back, but not by much.
One commenter referred to it as the “moment of truth” for bitcoin.
Anthony Cuthbertson8 June 2021 20:57
Bitcoin seized by FBI discovered
It looks like the address holding the bitcoins seized by the FBI during the agency’s investigation into a ransomware attack on a gas pipeline in the US has been tracked down.
Antoine Le Calvez, the self-proclaimed “Indiana Jones of the cryptosphere”, used info from the warrant to find the bitcoin wallet holding the illegally gotten gains. It seems the hackers did not move them into cold storage, where they would have been safe, but instead left them on an exchange or custodial wallet based in the US that was subject to interference from law enforcement.
The $2.3 million seized by the Department of Justice has been attributed by some as the cause of the latest price crash, though it amounts to just 69 bitcoins – and is no reflection on the network’s overall strength or security.
Anthony Cuthbertson8 June 2021 18:56