The cryptocurrencies were boosted by news from El Salvador that BTC will officially be recognised as legal tender, allowing people to use it to pay for goods and services in the Central American country.
Bitcoin’s price immediately shot up by 5 per cent following the announcement, while other leading cryptos also rose by a couple of points.
The uptick pushed the overall market cap for all cryptocurrencies combined back above $1.5 trillion and has -for the moment at least – halted a price slide that began in mid April.
Bitcoin has stubbornly refused to drop below $30,000 throughout the downturn, with some analysts seeing this mark as a point of no return and the final signal that it has entered a bear market.
You can follow all the latest news from the crypto market right here.
‘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 DiversiFi 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
Bitcoin expert ‘still extremely bullish’
Despite the sudden drop in the market, many bitcoin price analysts and crypto experts remain overwhelmingly positive about the cryptocurrency’s future.
Paolo Ardoino, the chief technology officer at the exchange Bitfinex, tells The Independent that he is “extremely bullish” about bitcoin in the long term.
Here’s what he had to say:
Anthony Cuthbertson8 June 2021 17:42
Crypto market turns red
The latest crypto market crash is showing no signs of slowing down, with bitcoin falling by more than $1,000 over the last hour.
All other major cryptocurrencies have followed its lead, with Ethereum (ether), Binance Coin, Cardano (ada), dogecoin, Ripple (XRP), Polkadot, Uniswap and bitcoin cash all registering losses of between 10-25 per cent over the last 24 hours.
It means all of them are now also down when looking at their price charts on a week-by-week basis. (Only the stablecoins Tether and USD Coin, whose value is tied to that of the US dollar, have prevented the entire top half of the market from turning red.)
Anthony Cuthbertson8 June 2021 16:45
PayPal sees bitcoin record
Online payments giant PayPal, which began supporting crypto payments earlier this year, has registered a new daily volume record in excess of $300 million.
The new peak surpasses the previous record seen in January this year, according to ItBit, the cryptocurrency firm that serves as the custodian for PayPal’s bitcoin funds.
Some analysts have speculated that this could be a bullish sign for the market, as it could suggest that investors are stocking up on bitcoin while the price is around half that of the $64,000 peak it saw in mid April.
Anthony Cuthbertson8 June 2021 15:45
Biden adviser reveals he owns bitcoin
One of Joe Biden’s top technology advisers has a major stake in bitcoin, according to a new report.
Tim Wu, who also serves as one of the White House’s leading anti-trust experts, owns between $1 million and $5 million of bitcoin, as well as hundreds of thousands of dollars worth of Filecoin (FIL).
The holdings were first reported by Politico, who cited a personal financial disclosure made by Wu. The US President appointed Wu the special assistant for technology and competition policy at the National Economic Council in March 2021.
Anthony Cuthbertson8 June 2021 14:43
Elon Musk responds to crypto criticism from Anonymous
Tesla CEO and occasional bitcoin enthusiast Elon Musk has responded to a video purportedly posted by the hacking group Anonymous.
After warning Musk to stop tweeting about cryptocurrency, the tech billionaire continued to interact with dogecoin memes on Twitter and even responded with a crying laughing face emoji to a spoof of the Anonymous video.
The masked figure in the video, which was posted over the weekend, accused Musk of “destroying lives” through his various market-moving posts and comments.
You can read the full story here:
Anthony Cuthbertson8 June 2021 12:39