Many bullish events and occurrences occurred in the previous week, and the price of bitcoin reflected this!
Last Week In Bitcoin is a weekly series that covers all of the major news and analysis from the previous week in the Bitcoin business.
Bitcoin has had an eventful week. Elon Musk disclosed that SpaceX, along with Tesla and himself, owns bitcoin and has no intentions to sell it anytime soon. Jack Dorsey pushed a pro-bitcoin agenda to Twitter shareholders, advising them to take an “aggressive” approach to bitcoin investing. Apart from a slew of other stories, the week finished with reports that Amazon would begin accepting bitcoin payments before the end of the year, sending bitcoin surging toward $40,000 in value. Overall, it’s been a good week for HODLers.
The Bitcoin holdings of Rothschild Investment Corp have more than tripled. FTX, the largest Bitcoin exchange in history, raises $900 million. Elon Musk Discusses Bitcoin’s Benefits and Reveals That SpaceX Has Bitcoin JPMorgan Chase Is The First Big Bank To Allow Retail Customers To Use Bitcoin To Twitter Shareholders, Jack Dorsey Says: “We Must Invest Aggressively” In Bitcoin Amazon is taking Bitcoin seriously as a form of payment. Aside from bullish market emotions, the market has shown enough activity to suggest an upward breakout is on the way. Apart from El Salvador’s statewide deployment of bitcoin in September 2021, there are speculations that Tesla will resume accepting bitcoin payments; Twitter and other corporations’ “aggressive” investment in bitcoin; and predictions that Amazon will accept bitcoin payments or invest in it outright.
Given recent events, bitcoin’s current trajectory is likely to continue the same route as in November and December 2020. If that happens, bitcoin could very likely go beyond $100,000 in the fourth quarter of 2021, which means dedicated HODLers and others who bought recent falls will have Christmas early.
NEWS FOR BULLISH PEOPLE
Let’s begin with the bullish reports that propelled bitcoin to $40,000 in recent days.
Amazon, the global marketplace with over 310 million users, appears to be interested in integrating bitcoin payments onto its website. If this turns out to be true, and Amazon begins to take bitcoin as payment, the market will respond positively, especially if the speculations were successful in driving the price up on Sunday.
Bitcoin tyrant In a letter to Twitter shareholders, Jack Dorsey stated that the firm should “invest aggressively” in bitcoin. Interestingly, during an appearance on The B Word earlier this week with Dorsey, Musk, and Cathie Woods, Dorsey continually evaded Elon Musk’s concerns regarding Twitter adding bitcoin into its platform.
During the conversation, Elon Musk made two significant statements about The B Word. The first was confirming that, in addition to Tesla and Musk, SpaceX has bitcoin on its balance sheet. The second was that, while he “pumps” the market, he would never “dump,” prompting many to interpret this as an admission that he and his firms have no plans to sell any of their bitcoin holdings. With Musk’s massive trolling over the last six months, this was about as bullish as anything else he’s said.
Finally, there’s FTX’s recent fundraising round, in which the global exchange raised $900 million in funding, the largest ever for a crypto exchange, resulting in a $18 billion valuation and underlining that institutional investors’ interest in the crypto field is as strong as ever. Bullish, to say the least.
NEWS FROM THE BEAR
The European Commission proposed a rule last week to require KYC for all digital currency transactions in the European Union. If passed, wallet makers such as Ledger and Trezor, both of which are based in Europe, may suffer as a result. Although bearish in the long run, the law still has numerous obstacles to overcome, and it may not be passed.
Fortunately for us, the rest of the week’s news is relatively pessimistic. Let’s hope it continues to be thus.
I’m still optimistic about bitcoin’s future. Fiat pricing is expected to rise in the next months, propelled by high inflation rates in the United States and the United Kingdom, increased adoption by large firms, and a shift in market mood.
I feel we’re in for a crazy week in the coming days, as the recent rally will either see a decent pullback or push bitcoin beyond the $40,000 resistance and back into the mid-forties. Of all, nothing is fixed in stone, and if you’ve just been trading for a short time, the market’s volatility and uncertainty can be worrying.
True bitcoin enthusiasts and hardcore HODLers will agree that the best way to approach bitcoin is to take a long-term perspective. Short-term volatility is common, but if you acquired bitcoin at any point in the 11 years leading up to 2021, your portfolio would be lovely and green right now.
Many people would agree with me that bitcoin is still in its infancy. Only one of the 195 countries on the planet has adopted bitcoin, and the last bitcoin was mined 119 years ago. There are still millions of companies and billions of people who have yet to appreciate the beauty of bitcoin.