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Last Week In Bitcoin is a series dealing with the events of the previous week that occurred in the Bitcoin industry, covering all important news and analysis.
Summary of the week
It’s been an eventful week for bitcoin as El Salvador officially began accepting bitcoin as legal tender, giving citizens $ 30 worth of bitcoin each and paving the way for further adoption around the world. Global giants like McDonald’s and Starbucks have started accepting bitcoin in the country, who may know they will start doing the same elsewhere in the near future.
Of course, not everything was going well this week, although it is only a historic week for bitcoin. On the same day Salvadorans lined up to receive their bitcoin and start using it across the country, bitcoin experienced a dramatic drop that many see as a coordinated effort to undermine the currency. Here’s what happened this week in bitcoin:
A historically bullish week
Bitcoin started what many hoped to be a bullish week on Monday in overage of $ 51,000 for the first time since May 14, 2021, before El Salvador officially accepted bitcoin as legal tender. Nayib Bukele, President of El Salvador, announced on Monday that the country had bought its first 200 BTCs, he was going acquire an additional 200 BTC early Tuesday.
Interestingly, banks and markets across the United States were closed Monday because it was Labor Day, but as we all know; Bitcoin never closes.
Tuesday was a lightning day for bitcoin. Bill Miller, famous investor, presented bitcoin as an alternative to investing in gold, saying “we are still ahead” in reference to investing in bitcoin and its potential value in the not-so-distant future. But that, of course, may have gone unnoticed by many, as Tuesday was full of other more “important” news.
The Savior Bitcoin officially implemented as legal tender Tuesday and started the deployment of its Chivo portfolio, ATMs and kiosks across the country. It’s true, a whole country now accepts bitcoin. Local and international businesses in El Salvador have started accepting bitcoin payments with fast food giant McDonald’s and global coffee giant Starbucks joining the fray.
Early in the morning, bitcoin topped $ 52,000, last seen on May 12, 2021, and looked set for a decent run, but the market had other ideas. As of noon, bitcoin fell 17%, briefly falling to just under $ 43,000 before recovering and ending the day just below $ 47,000. The drop was enough of an incentive for the Salvadoran government to pile up a few sats, buying an additional 150 BTC, bringing its total holdings to 550 BTC. That’s right, a country HODLs 550 BTC in its treasury.
But on Tuesday, it wasn’t just about El Salvador, as NBA legend Stephen Curry and bitcoin exchange FTX announced a partnership to ‘demystify’ bitcoin to the average consumer. As the day drew to a close, the head of Standard Chartered’s new bitcoin and crypto research unit Geoffrey Kendrick told clients in a note Tuesday: For the unbanked world in a future cashless world. And “cyclically we expect to peak around $ 100,000 in late 2021 or early 2022.” That’s bullish for a $ 789 billion company.
Union Investments, a Germany-based $ 500 billion investment firm, said on Wednesday it has a bitcoin pilot program underway and will bring bitcoin exposure to its clients. Later in the day, Blockstream announced a partnership with Macquarie Group, a $ 428 billion investment and a leading investor in global renewable energy infrastructure, to pilot a bitcoin mining facility and explore sources carbon neutral alternative energy sources to power such operations.
Wednesday also, Dan Tapiero, CEO of 10T Holdings, said “Bitcoin goes up to $ 400,000 or $ 500,000 and potentially more.” Bitcoin bulls continue to grow from week to week.
Ukraine made headlines around the world on Thursday when its parliament passed a law legalizing bitcoin in the country. The bill was first introduced in the fall of 2020 and passed with a total of 276 lawmakers supporting it, and only six against. Ukrainians are now free to trade and own bitcoins.
Also on Thursday, the controversial investment app Robinhood added Average Dollar Cost (DCA) to its bitcoin derivative, allowing users to usually buy and save bitcoin on the platform. However, they made no mention if their service would improve.
During Thursday’s Bitmain digital mining conference, Miami Mayor and laser eye aficionado Francis Suarez concluded his speech by challenging the audience to “step out and elect the next president of the United States to be a pro Bitcoin president “.
Finally, on Thursday, Rick Rieder, CIO of BlackRock, told CNBC’s Squawk Box that he owned bitcoin and that he believed its price could rise “significantly” in the future. In August 2021, BlackRock allocated more than $ 382 million to shares in bitcoin mining giants Marathon Digital Holdings and Riot Blockchain.
Not without bumps
This week has not been without bearish news. As the rollout of bitcoin in El Salvador as legal tender was underway on Tuesday, bitcoin fell nearly 17%, briefly hitting $ 42,900 before recovering and ending the day just below $ 47,000. Many have speculated that the sudden drop was a coordinated effort by big players to undermine El Salvador’s deployment and deter other countries from following the same path.
While the week has started well, with bitcoin briefly surpassing $ 52,850 on Tuesday, its fall on Tuesday has yet to be brought back to nearly $ 50,000, having fallen below $ 45,000 on several occasions this week. especially Friday.
Speaking of Friday, Dmitry Peskov, acting press secretary to Russian President Vladimir Putin, said on Friday that Russia had no reason to recognize bitcoin and that he was not convinced that the adoption of the bitcoin would bring benefits to the Russian Federation. Not too bearish but still not positive.
Verdict
Overall, I am still as optimistic as ever. An entire country has made bitcoin legal tender and now bitcoin HODLs in its treasury, which is one of the history books, should bitcoin meet analysts’ expectations in the next ten or two years – 10 million dollars per bitcoin, anyone? Besides El Salvador leading the way for others, Ukraine legalizing bitcoin in the country is a big step forward, legitimizing bitcoin as an asset and encouraging wider adoption.
I remain skeptical as to whether this week’s sudden drop was a coordinated effort or just a normal market correction that fell on the same day bitcoin took a massive leap forward. “Buy the rumor, sell the news” has been the mantra for many years and seems to be exactly what has happened.
With Standard Chartered joining people like me and Bloomberg in predicting a target of over $ 100,000 for bitcoin in the near future, I find comfort in taking a macro perspective on the market, instead of worrying about the past week and what will follow. Bitcoin still has huge room for growth and I remain convinced that a six-digit bitcoin is not that far away.
This week was on, and despite some headwinds bitcoin is poised for a decent increase at the end of the year.
This is an article invited by Dion Guillaume. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
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