Bitcoin is on the rise once again, with prices up 17 percent since Tuesday’s sudden crash.
The cryptocurrency got a boost from El Salvador’s news that it would be recognized as legal tender in the Central American country, with other countries in the region indicating that they may follow suit.
On Wednesday, Bitcoin’s bounce back has had a knock-on effect across the crypto space, along with Ethereum (Ether), Dogecoin, Cardano (ADA) and other major cryptocurrencies.
There is a positive rally on Thursday, although the market still seems to be hanging in the balance.
Analysts and experts are divided on whether the latest surge will put bitcoin back on its record-breaking run that it has enjoyed so far in 2021, or whether it is just a setback on its way to greater losses.
You can follow all the latest news, analysis and price forecasts here.
El Salvador’s President Plans 100% Green Bitcoin Mining
More positive news coming out of El Salvador this morning, this time concerning the environmental impact of bitcoin.
President Nayib Bukele has directed the head of the country’s state-owned geothermal power company to provide facilities for bitcoin mining, so that the cryptocurrency can be made using 100 percent renewable energy.
“It’s going to grow fast!” He tweeted.
Engineers are reportedly already working on the design for the project, while mining companies are keen to provide any help in setting up the rig.
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 term by accepting payments in cryptocurrency.
Billy Marcus tweeted to new GME boss Ryan Cohen that “Please add Dogecoin to buy stuff online”.
GameStop’s share price rose sharply after the announcement of Cohen’s new term, and again hit a record high in January of this year. Dogecoin’s price also rose nearly 10 percent in the hours following the news, although this may also be a reflection of bitcoin’s recovery.
Can other countries follow El Salvador?
El Salvador may be the first to adopt bitcoin, but many are betting it won’t be the last.
Several other countries in Latin America may soon follow suit, with politicians in Argentina, Brazil, Mexico, Panama and Paraguay expressing interest in the cryptocurrency.
There are several obvious benefits to formally recognizing bitcoin as legal tender, such as slowing inflation, enticing crypto entrepreneurs, and increasing financial inclusion for those who have been forgotten by the formal economy. But there are some risks with it – at least in the U.S. Not the outbreak.
You can read the full story here:
Which countries can follow El Salvador by making bitcoin legal tender?
Can Brazil, Paraguay and other countries in Latin America create ‘free trade zones’ with cryptocurrencies as legal tender?
bitcoin price above $35,000
Bitcoin price just recently crossed the $35,000 mark, from yesterday’s lows to around $5,000.
Week-on-week, the cryptocurrency is still down around 6%, but it represents a solid bounce off the flash crash that hit the entire market earlier this week.
It’s still a long way from the bitcoin price’s peak of $64,000 in mid-April, but zooming in even further, it’s up nearly 300 percent year-on-year.
‘A new step for global adoption of bitcoin’
What does El Salvador’s landmark decision really mean for bitcoin, cryptocurrencies, and the global financial system?
We’ve heard from Ross Middleton, Chief Financial Officer of decentralized Ethereum exchange Deversify, to hear his thoughts on the implications of this milestone.
He says it may not be easy to overrule the ruling, given that El Salvador GDP is only $27 billion, but the ruling could signal “a new step for global adoption of bitcoin” and for Salvadorians in general. Those who are “huge” may not have access to traditional financial services.
Bitcoin law as a whole
El Salvador President Nayib Bukele has shared the full text of the bitcoin law.
It states: “The purpose of this law is to make bitcoins unrestricted, with the power to be legal, unlimited in any transaction, and to any title that requires public or private natural or legal persons … Every economic agent must accept bitcoin as a form of payment when someone receives a good or service.”
In a strange twist, this part of the law means Tesla will be forced to accept bitcoin as payment when selling a car in El Salvador – just a month after the cryptocurrency was rejected.
El Salvador formally adopts bitcoin as legal tender
This is big news for bitcoin. El Salvador’s Congress has passed a law that will officially make cryptocurrency legal tender in the country.
The bitcoin law aims to woo crypto entrepreneurs in the Central American country as well as improve financial inclusion. Being classified as currency means it will not be subject to capital gains tax.
This order will be effective in 90 days.
The positive news led to a 5% jump in the price of bitcoin.
Read the whole story here.
El Salvador becomes the first country to adopt bitcoin as a currency
El Salvador has approved a law to make bitcoin legal tender, making it the first country in the world to formally adopt cryptocurrency as an official form of currency.
Bitcoin price faces ‘moment of truth’
The pseudonymous crypto analyst PlanB, best known for its stock-to-flow price prediction model, has garnered a lot of attention during the 2020-21 bull run.
His model predicted massive price gains for Bitcoin and predicted a peak of $288,000 for this current cycle. While their model allows for price correction, the scale of this current downtrend is proving to be a major test.
Right now, the market could follow a similar pattern to the 2013 and 2017 bull markets – or it could be a repeat of the pattern seen in subsequent “crypto winter” crashes.
If Bitcoin falls lower, or stays longer at this price, PlanB says it could be a “death cross” for the cryptocurrency.
In a poll of half a million Twitter followers today, PlanB asked whether the bitcoin price would bounce back or not cross this potential point. The response supported the surge, but not by much.
One commenter called it a “moment of truth” for bitcoin.
Confiscated bitcoins discovered by the FBI
The addresses holding bitcoins confiscated by the FBI appear to have been tracked down during the agency’s investigation into a ransomware attack on a gas pipeline in the US.
Antoine Le Calvez, the self-proclaimed “Indiana Jones of the cryptosphere”, used information from the warrant to find a bitcoin wallet containing illegally obtained profits. It appears that the hackers did not move them to a cold storage where they would have been safe, but instead left them on an exchange or custodial wallet located in the US, which was subject to law enforcement intervention.
The $2.3 million confiscated by the Justice Department has been attributed by some to the cause of the latest price crash, although this is the equivalent of just 69 bitcoins – and is not a reflection on the network’s overall strength or security.
Bitcoin expert ‘still extremely bullish’
Despite the sudden drop in the market, many bitcoin price analysts and crypto experts remain highly positive about the future of the cryptocurrency.
Paolo Ardoino, Chief Technology Officer of the exchange Bitfinex told independent That he is “extremely optimistic” about bitcoin in the long term.
Here’s what he had to say:
Credit: www.independent.co.uk /