Coming every Saturday, Hodler’s digest Will help you track every important news that happened this week. The best (and worst) quotes, adoption and regulation highlights, major coins, predictions and more – a week on Cointegraph in a link.
Top news of the week
Bitcoin is struggling right now. Cryptocurrency struggles to keep its head up $ 40,000 As of this week traders reacted negatively to the dual threats of environmental concerns and the increasing intoxication of regulation.
We have seen many ups and downs in the market in the last two weeks. Although most institutional investors have persevered and vowed to continue to hold on to their crypto, there is a lack of “we bought the plunge” announcements. All this has made retail traders worry that BTC may face further downside.
The Crypto Fear and Grid Index is currently showing a score of 14, Indicating that extreme fear is currently crippling the market.
Yes, there are some serious caveats out there, but bitcoin’s 11-year history helps provide an insight into how the world’s largest cryptocurrency fares when things turn bearish.
The BTC/USD exchange rate usually moves parabolically. This subsequently reduces more than half of those profits as profitable traders sell the top. But at the same time, merchants who buy bitcoin around its local head end up losing a long time.
Overall, the historical value trajectory of bitcoin remains upside down. The cryptocurrency runs out from the bottom after each rapid recession cycle and rebounds again to seek new historical highs.
Planby, the maker of the stock-to-flow model that BTC predicts will be a hit $ 288,000 By 2024, given this powerful fact recently: Not a single investor who has held bitcoin for more than four years has lost money.
Together China imposing a crypto crackdown, Biden Administration is reviewing “Gaps” in the regulation of digital assets, iran BTC mining ban until September To save electricity, and Australia warns that Traders who do not report crypto profits The consequences will suffer, regulation is definitely raising a gear.
But when it comes to whether Bitcoin is in danger of being shut down, Arch Investment founder Kathy Wood believes it would be “impossible”.
At CoinDesk’s consensus 2021 conference, it predicted that global regulators would “be a little more accommodating over time” due to fear of losing opportunities offered by the industry.
Wood said miners are now ready to prioritize renewable sources of energy for BTC mining: “Half the solution is understanding the problem.”
According to Microstory’s CEO Michael Sayler, part of this quest to understand the problem involves the creation of the Bitcoin Mining Council.
The organization, announced on May 25, was formed following a successful meeting between Elon Musk and several top North American mining firms.
During the consensus 2021 conference, Sayler said: “It turns out that bitcoin miners don’t really have a good platform to describe how they generate their energy. We don’t have a standard model for bitcoin energy use right now, and we don’t have a forecast for the future.” Not the model we usually use. “
Nick Carter of Castle Island Ventures is definitely a fan of making things more transparent, but he believes Elon Musk is not the right person To lead this debate.
He explained in detail: “Bitcoiners are still completely skeptical about Musk, and they see him as disputed, as his business partly involves offset sales.”
There were some promising developments on the adoption front this week. PayPal announced that it will allow users to withdraw digital assets to third-party wallets.
During this, Apple has revealed That it is looking for a new business development manager specializing in alternative payments, including cryptocurrency – indicating that the iPhone maker is moving towards digital assets.
While the job postings are compelling, Apple remains largely on the edge of the cryptocurrency industry and has yet to indicate definite plans for expanding into this market. Interestingly, cryptocurrency exchange Coinbase recently overtook TickLock as the most downloaded app on Apple’s App Store.
Winners and losers
At the end of the week, bitcoin is on $ 36,514.09, Ether at $ 2,515.33 And on XRP $ 0.90. Total market cap is $ 1,589,854,165,444.
Among the largest 100 cryptocurrencies, the top three are acquiring altcoin of the week. Helium, bakery token And Polygon. The top three altcoin losers of the week are Wave’s, Solana and UNUS SED LEO.
For more information on crypto prices, be sure to read Cointegraph’s Market Analysis.
Most memorable quotation
“I believe that bitcoin has a long way to go from here. I think it will slowly grind down the slope of hope with a dead cat boom from time to time. Bitcoin’s technically serious form Is damaged, it is better to be the first to sell in a bubble before the entire ship sinks. “
“It turns out that bitcoin miners don’t really have a good platform to explain how they generate their own energy. We don’t have a standardized model for bitcoin energy use right now, and we don’t have future forecasts. Not the model we usually use. “
Michael Saylor, Microstrategy CEO
“Talked with North American bitcoin miners. They committed to publishing current and planned renewable use and asking miners to do the same. Potentially promising.”
Elon Musk, Tesla CEO
“No-Coiners are taking this opportunity to buy Dip.”
Willie woo, Statistician
BTC’s 30-day volatility is at an annual high, indicating that major cryptocurrencies are at risk of wildly fluctuating prices in the coming sessions.
When it comes to ether things get even more crazy. Skew’s data shows that the real volatility of ETH / USD over the 30-day timeframe is now near 2017 highs.
This week a terrible prediction was made by an analyst at BiotechValley Insights, who said: “I believe that bitcoin has a long way to go from here. I think it will slowly grind down the slope of hope with a dead cat boom from time to time.”
His current price target? $ 15,000 To $ 16,000.
FUD of the week
Three years and some unforgettable memories later, the United States Securities and Exchange Commission has announced that five individuals will face charges related to promoting the Bitconnect Ponzi scheme.
Promoters are charged with offering and selling securities without registration with the SEC and validating themselves as broker-dealers in violation of the law.
They reportedly “advertised the merits of investing in Bitconnect’s lending program to potential investors, by creating ‘testimonial’ style videos and publishing them on YouTube, sometimes several times a day.”
SEC’s Lara Shalov Mehraban said: “We will try to hold those accountable who illegally profit by capitalizing on the public interest in digital assets.”
The UK advertising regulator has banned an advertising campaign that tells people “it’s time to buy” bitcoin.
Luno’s posters made a big splash earlier this year, and were pasted onto the London Underground Transit Network and buses. One advertisement stated: “If you are looking at bitcoin on the underground, then it is time to buy.”
However, the Advertising Standards Authority concluded that the campaign failed to describe the risk of investing in BTC. It said: “We assumed that consumers would interpret the statement ‘time to buy’ as a call to action and the statement’s simplicity gave the impression that bitcoin investment was straightforward and accessible.”
There will be a need to give appropriate risk warnings in future advertisements.
New penalties have been introduced in Inner Mongolia to try and stop people from bitcoin mining.
Reports suggest that criminals will now be placed on a social credit blacklist – something that will prevent them from accessing loans or being able to use local transportation networks.
The new rules specifically mention data centers, industrial parks, telecom companies, internet firms and even cyber cafes, noting that the business license of any such criminal operating mining equipment can be revoked. Will be removed from the local electricity business plan, and even their businesses are completely shut down.
China’s determination to free itself from bitcoin miners has already had an impact. Three mining companies – BTC.TOP, Huobi and HashCow – announced that they are closing their operations in the Chinese mainland earlier this week.
Best Cointegraph Features
Steps are being taken to ensure green bitcoin options for investors, but this can only serve as a short-term solution to a long-term problem.
Institutional investors know that crypto assets are volatile: “They are making a generational bet and don’t deviate from a few weeks of volatility.”