One day you’re on top of the world, making headlines for your upcoming appearance on SNL. Not long after, you’re the laughing stock of the internet. That’s the curse of Dogecoin, which, along with Bitcoin, Ethereum and pretty much every other cryptocurrency, tumbled in value on Monday. Signs for a better Tuesday aren’t encouraging. What’s the reason? China — again. Back in May, Chinese officials reaffirmed an old ban that forbids financial firms from actively aiding in the mining and selling of cryptocurrencies. It caused a big dip, but crypto enthusiasts shrugged that the ban is nothing new, that it had enshrined in 2013 and then sparsely enforced.
El Salvador’s President Nayib Bukele has already marked a historic moment in Bitcoin’s evolution when the country declared the cryptocurrency legal tender. Then he followed that up with plans for El Salvador to use geothermal energy from volcanoes to mine BTC, saying that a state-owned company could provide mining facilities with affordable and green energy.
Bitcoin traded lower as investors unpacked Wednesday’s announcement from the U.S. Federal Reserve that it could raise interest rates by late 2023. Assets deemed to be risky like stocks and crypto also appear to be weighed down by lingering concerns that the Fed may wind down its bond-buying program sooner than expected. Some analysts, however, expect bitcoin to remain resilient if inflation continues to rise, which could lead to outperformance versus traditional markets.
A new study by the United Kingdom’s Financial Conduct Authority has indicated a significant increase in cryptocurrency ownership in the country. On Thursday, the FCA published the results of a consumer survey which found that 2.3 million adults in the U.K. now hold crypto assets, up from 1.9 million last year. Alongside the increasing number of crypto investors, the study also identified a surge in ownership volumes, with median holdings rising to 300 British pounds ($420) from 260 pounds ($370) in 2020. The rising popularity of holding cryptocurrency comes in line with an uptick in the awareness level as 78% of adults said they have heard of crypto, up from 73% last year.
United States investment bank Goldman Sachs is planning to offer Ether (ETH) derivatives products in the coming months, setting the stage for wider adoption of the second-largest cryptocurrency and marking a significant departure from the institution’s critical stance on digital assets in the past. Mathew McDermott, Goldman’s managing director of digital assets, confirmed Monday that the investment bank is expanding into Ether options and futures. In an interview with Bloomberg News, McDermott said institutional demand for cryptocurrencies will continue to grow despite the recent bout of market volatility
The United States Space Force, a branch of the armed forces created under the previous administration of Donald Trump, is releasing a series of nonfungible tokens, or NFTs. In an announcement on Monday, the U.S. Space Force (USSF) said it had partnered with community-oriented nonfungible token platform Ethernity Chain to release digital versions of patches and coins designed for the launch of its fifth vehicle in the GPS Block III. The NFTs will feature the satellite’s launch vehicle, space suits and other iconic imagery. The one being launched is named after Neil Armstrong, a space pioneer and the first person on the moon.
Bitcoin surged past $40,000 for the first time in two weeks after Tesla CEO Elon Musk said the electric-car maker would accept the cryptocurrency as an alternative payment subject to miners meeting environmental standards. Buyers stepped in on Sunday after Musk tweeted that Tesla will allow bitcoin transactions again “when there’s confirmation of reasonable (50%) clean energy usage by miners with a positive future trend.”
Showcasing an equivalent fight among bulls and bears, Altcoins took a dive last week but bounced back with a strong retracement in the last 7 days. The overall market capitalization of crypto assets has nosedived more than 5-7 per cent after a pullback from the lows. The two important alternative assets, Binance Coin and Stellar, which stood at 4th and 17th rank by market cap, respectively, have shown strength.
Americans got richer off bitcoin than any other country last year — pocketing $4.1 billion in profits as the price of the volatile cryptocurrency soared to $29,000 from under $10,000, according to a new analysis. The US was followed by China, which cashed out some $1.1 billion in profits in 2020, according to data published Monday by blockchain firm Chainalysis. Japan came in third with $900 million, followed by the United Kingdom with $800 million and Russia with $600 million. The figures only cover realized gains, meaning that profits still held in cryptocurrencies or in exchange accounts are not included.
Deutsche Bank, Germany’s largest lender, says the U.S. might be headed for one of its worst inflationary periods in history, arguing that elevated government spending and loose monetary policy could combine to create conditions similar to prior episodes in the 1940s and 1970s. Adding to the pressures are some $2 trillion of “excess savings” that consumers have amassed over the past year, when many businesses were closed and travel mostly shut down, according to the report published Monday.