Bitcoin extends its 3-day gain above $31,000

Crypto investors flee more volatile altcoins

Bitcoin stretched a winning streak on Monday, with institutional investors recently pouring money into the world’s most valuable cryptocurrency, according to data from CoinShares, as they navigate through the market’s so-called crypto winter.

Bitcoin gained for a third session in a row and hit an intraday high of $31,680.37, according to CoinGecko, marking the highest price since June 1.

The virtual coin, which had a market cap of $597 billion, last week saw $125.9 million of  inflows last week, bringing total inflows for 2022 to $506 million, digital asset management company CoinShares said in a weekly update.

“Altcoins,” meanwhile, “saw virtually no inflows last week highlighting investors are flocking to the relative safety of Bitcoin,” said CoinShares.

Elon Musk Mocks Legendary Investor Warren Buffett’s Attack On Bitcoin

Buffett had in the past described cryptocurrency as rat poison

Warren Buffett criticised Bitcoins at the Berkshire Hathaway annual shareholder meeting on April 29, saying they have no intrinsic value. Not just Musk, earlier, Paypal Co-Founder Peter Thiel had taken on Buffet for his crypto-hate, calling the legend a ‘sociopathic grandpa from Omaha.’

Even though Bitcoin has steadily grown in popularity in the investment world, the 91-year-old CEO of Berkshire Hathaway and his long-time partner and the holding company’s Vice-Chairman Charlie Munger have voiced their derision of Bitcoin and cryptocurrencies openly.

Buffett, who had in the past described cryptocurrency as rat poison, on April 30 said they were not a productive asset as they did not produce anything tangible. He said even if he had the opportunity to buy the whole of Bitcoin for $25, he would refrain from doing so.

Crypto-linked credit cards announced at the Singapore FinTech Festival

The new card converts instantly cryptocurrencies into traditional fiat currency

Consumers and businesses in the Asia-Pacific region will soon be able to apply for crypto-linked Mastercard credit, debit or pre-paid cards that will enable them to instantly convert their cryptocurrencies into traditional fiat currency.

The money can be spent everywhere Mastercard is accepted around the world, both online and offline.

The service is made possible through a partnership between the payments giant and three digital asset service providers which will launch the crypto-funded Mastercard payment cards, said Mastercard, without giving details as to when.

Hong Kong-based Amber Group, Thailand’s Bitkub, and CoinJar in Australia are the first Asia-Pacific-based cryptocurrency platforms to join Mastercard’s global crypto card programme, which aims to make it simpler and faster for crypto firms to bring such payment cards to market.

New York Mayor-elect Adams says he will take his first three paychecks in bitcoin

New York, “center of the cryptocurrency industry”

New York Mayor-elect Eric Adams said on Thursday he would take his first three paychecks in bitcoin and signaled his intention to make his city the “center of the cryptocurrency industry” after he takes office in January.

“In New York we always go big, so I’m going to take my first THREE paychecks in bitcoin when I become mayor,” Adams wrote in a Twitter post. “NYC is going to be the center of the cryptocurrency industry and other fast-growing, innovative industries! Just wait!”

The mayor-elect’s tweet came in response to Miami Mayor Francis Suarez, who wrote in a Twitter message of his own that he would take his first paycheck in bitcoin, the world’s largest cryptocurrency. Suarez, who won re-election on Tuesday, has been a cryptocurrency champion, setting his sights on building Miami into a hub for cryptocurrency innovation.

A third of El Salvador’s population is actively using its bitcoin wallet Chivo

Figures suggests a mixed response to bitcoin becoming legal tender in the country

El Salvador President Nayib Bukele has said a third of the country’s population is actively using the Chivo cryptocurrency wallet, after the government made bitcoin legal tender earlier this month.
Bukele tweeted  at the weekend that 2.1 million Salvadorans were actively using the wallet. “Chivo is not a bank, but in less than 3 weeks, it now has more users than any bank in El Salvador and is moving fast to have more users that [sic] ALL BANKS IN EL SALVADOR combined,” he said. “This is wild!”

El Salvador officially launched bitcoin as legal tender on September 7, meaning businesses have to accept it as payment, but the rollout was far from smooth.

El Salvador’s Chivo Wallet Saw 500,000 Registrations In One Week

200 Chivo bitcoin ATMs up and running in the country and 50 machines installed in the U.S

The state-owned bitcoin dollar account has over half a million users, 200 ATMs in El Salvador, 50 ATMs in the U.S.

The President of El Salvador, Nayib Bukele, has shared updated information on the state-owned bitcoin and dollar wallet Chivo on Twitter, as well as some news regarding the country’s work towards facilitating BTC usage and exchange.

Bukele disclosed that there are 200 Chivo bitcoin ATMs up and running in the country and 50 machines installed in the U.S., which allow users to top up their app balance with zero commission fees. Los Angeles, San Francisco, Atlanta, Chicago, Dallas, Houston, El Paso, El Doral, Laredo, and McAllen all have working Chivo ATMs installed.

Bitcoin crashes on first day as El Salvador’s legal tender

Bitcoin could save the country $400m a year in transaction fees on funds sent from abroad

The price of Bitcoin on Tuesday crashed to its lowest in nearly a month, falling from $52,000 (£37,730) to under $43,000 at one point. An opposition politician said the fall caused one of Latin America’s poorest countries to lose $3m.

The rollout of bitcoin in El Salvador was far from what President Nayib Bukele would have envisaged when he began his bold experiment. Platforms such as Apple and Huawei weren’t offering the government-backed digital wallet, known as Chivo, and servers had to be pulled offline after they couldn’t keep up with user registrations.

The government has even given Salvadorans $30 each of Bitcoin to encourage its adoption. It says bitcoin could save the country $400m a year in transaction fees on funds sent from abroad. However, using data from the World Bank and the government, the BBC calculates this to be closer to $170m.

The Bitcoin Crash of 2021 Compared to Past Sell-Offs

As Bitcoin Crashes, Coinbase and Other Cryptocurrency Exchanges Are Reeling

While bitcoin has been one of the world’s best performing assets over the past 10 years, the cryptocurrency has had its fair share of volatility and price corrections. Using data from CoinMarketCap, this graphic looks at bitcoin’s historical price corrections from all-time highs.

With bitcoin already down ~15% from its all-time high, Elon Musk’s tweet announcing Tesla would stop accepting bitcoin for purchases helped send the cryptocurrency down more than 50% from the top, dipping into the $30,000 price area.


India’s cenbank tells lenders to re-consider ties with crypto exchanges

Cut ties with cryptocurrency

India’s central bank is informally urging lenders to cut ties with cryptocurrency exchanges and traders as the highly speculative market booms, despite a Supreme Court ruling that banks can work with the industry, three sources told Reuters

The guidance comes as India is crafting a law to ban cryptocurrencies and penalize anyone dealing in them, which would be among the most sweeping crackdowns on the new investing fad in the world. But with the COVID-19 crisis engulfing the country, no one is sure when such a bill may be passed, adding to investors’ confusion.

The Reserve Bank of India (RBI) in 2018 had forbidden banks from dealing in all transactions related to bitcoin and other such assets. That diktat was challenged by the crypto exchanges and in March 2020, India’s top court overturned the RBI ban and allowed lenders to extend banking facilities to them.

With investors continuing to rush into the hot new asset class, however, regulators appear to be gearing up for another try.

Dogecoin’s value tumbles

Elon Musk calls the virtual currency a ‘hustle’

The price of dogecoin tumbled by as much as a third on Sunday, after billionaire Elon Musk, one of its biggest supporters, appeared to call the virtual currency a “hustle” while hosting Saturday Night Live. Cryptocurrency watchers had high expectations of what Tesla chief executive and crypto-enthusiast Musk, who has called himself the “Dogefather”, would say while hosting the American comedy sketch show, and dogecoin had risen in anticipation.

However, Musk’s appearance had the opposite effect to that expected by investors. Dogecoin, a cryptocurrency similar to bitcoin which was started as a joke, fell by 35% at one point to reach $0.47 (£0.34) against the dollar, according to news website Coindesk. By Sunday evening (UK time) it had recovered slightly to reach $0.49, although that was well below the $0.68 it hit before the weekend after surging interest from investors.

‘Britcoin’ not bitcoin? UK considers new digital currency

Other central banks are also looking to set up digital versions of their own currencies

British finance minister Rishi Sunak told the Bank of England on Monday to look at the case for a new “Britcoin”, or central bank-backed digital currency, aimed at tackling some of the challenges posed by cryptocurrencies such as bitcoin.  A BoE-backed digital version of sterling would potentially allow businesses and consumers to hold accounts directly with the bank and to sidestep others when making payments, upending the lenders’ role in the financial system.

“We’re launching a new taskforce between the Treasury and the Bank of England to coordinate exploratory work on a potential central bank digital currency (CBDC),” Sunak told a financial industry conference. Soon after, Sunak tweeted the single word “Britcoin” in reply to the finance ministry’s announcement of the taskforce.

Other central banks are also looking at whether to set up digital versions of their own currencies, essentially widening access to central bank funds which only commercial banks can use at present. This could speed up domestic and foreign payments and reduce financial stability risks.

Coinbase is listing for US$100 billion on NASDAQ

Instead of following the traditional initial public offering (IPO) route, Coinbase plans to post its shares straight on the NASDAQ exchange via a direct listing, a technique pioneered by big names like Spotify and Palantir in recent years. Whereas an IPO involves a company creating new shares and having an underwriter that buys them for a set price and then sells them to the market, in a direct listing a company sells existing shares and has no underwriter.

Coinbase was founded in 2012 by Brian Armstrong, a former engineer at Airbnb, and Fred Ehrsam, who was a trader at Goldman Sachs. Their mission was to make investing and transacting in cryptocurrencies easier, more efficient and fairer. The company has since risen to become the largest cryptocurrency exchange in the US. Even though there are numerous other exchanges around the world with considerably larger trading volumes, including Binance, Huobi and OKEx, Coinbase’s growth has been incredible lately.

Billionaire bitcoin advocate Jack Dorsey is auctioning the very first tweet in history as an NFT

What is an NFT?

Twitter CEO Jack Dorsey is offering to sell his very first tweet by auctioning it as a special digital asset class known as a non-fungible token.

Dorsey shared a link Friday afternoon to a website called Valuables, which allows selling tweets as NFTs. The billionaire listed his very first tweet “just setting up my twttr” for bids even though it exists on Twitter and is free to view.

As a long-time cryptocurrency advocate, jumping into the NFT craze is not a surprising move by Dorsey.  Crypto boss Justin Sun upped his bid twice, ultimately offering $2 million for Dorsey’s tweet. But the highest bid for the piece of Twitter history is from Sina Estavi, CEO of the Bridge Oracle platform, according to the Valuable’s website.

Citi says bitcoin could become the currency of global trade

Change in tone for major financial institutions on bitcoin

Citi thinks bitcoin is at a “tipping point” and could one day “become the currency of choice for international trade” as companies like Tesla and PayPal warm to it and central banks explore issuing their own digital currencies.

“There are a host of risks and obstacles that stand in the way of Bitcoin progress,” the U.S. bank’s global perspectives and solutions team wrote in a note Monday. “Bitcoin’s future is thus still uncertain, but developments in the near term are likely to prove decisive as the currency balances at the tipping point of mainstream acceptance or a speculative implosion.”

It marks a change in tone for major financial institutions on bitcoin. Many banks have historically shunned the digital asset, arguing it has no intrinsic value and the hype surrounding it is akin to the tulip mania of the 17th century. But bitcoin’s wild ascent over the last few months has forced big Wall Street players to reevaluate the cryptocurrency. BNY Mellon, the oldest bank in the U.S., last month said it would offer custody services for bitcoin and other digital currencies. Meanwhile, JPMorgan has said it’s looking seriously as bitcoin.