Bitcoin price jumped to $ 40,000

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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

We’re back in the 40’s, baby! Bitcoin has spent most of the week hovering around $ 40,000, boosted by bullish news and not phased by the planned US Senate attack on Bitcoin through its new infrastructure bill. There’s a lot to unbox this week, and we’ve got a handy new timeline to show how different news has affected the price over the past week.

In short, Michael Saylor and MicroStrategy will continue at HODLing, Amazon won’t be introducing bitcoin payments anytime soon, large institutional investors are jumping on the bitcoin bandwagon, and Kazakhstan is welcoming Bitcoin with open arms.

Bitcoin Magazine Highlights Last Week Bitcoin News Timeline This Week Amazon denies report of accepting Bitcoin as payment method Bitcoin briefly exceeds $ 40,000 for first time since June as cryptocurrency rallies after sell Kazakhstan expands its mining of Bitcoin to the global market and allows users to open bank accounts for cryptocurrency Senator Warren: Crypto puts financial system in the hands of senators “ghost super-coders” consider taxes on cryptocurrencies to finance the infrastructure plan. Bullish News

Let’s start with the bullish news. Just over a week after dropping below $ 30,000, bitcoin broke above the $ 40,000 mark, briefly touching $ 42,000. The sudden surge was fueled by a report that Amazon would start accepting bitcoin payments. Amazon later denied the report, but it remained stable around $ 40,000.

Another big move this week that most of the mainstream media has passed over is Kazakhstan heading towards very open Bitcoin legislation. Besides their efforts to lure bitcoin miners to their shores, they will allow their citizens to open bank accounts dedicated to cryptocurrencies such as bitcoin and spend them across the country. Adoption isn’t quite at El Salvador’s level, but more countries could follow Kazakhstan’s more modest playbook compared to El Salvador’s.

MicroStrategy had its quarterly earnings call this week where CEO and bitcoin enthusiast Michael Saylor reiterated that the company will continue to HODLing for the long term, despite their holdings representing a significant loss in value as bitcoin has fallen to the during the reference period. MicroStrategy remains one of the most important large-scale HODLers and their confirmation is a good sign for market watchers.

Then there’s a bunch of financial institutions that have been on the bitcoin bandwagon over the past week, including GoldenTree, a $ 41 billion hedge fund. One of Germany’s largest asset managers, Dekabank, is also reportedly considering investing in bitcoin, which could pave the way for further European adoption. Finally, ProFunds announced the launch of the first bitcoin mutual fund in the United States, which may pave the way for others in the near future.

Bearish news

Then there is the bearish news. Last weekend, a report emerged indicating that Amazon would allow bitcoin payments in the near future, sending bitcoin running. On Tuesday, Amazon denied the rumors, which surprisingly haven’t affected the price of bitcoin as much as you might expect. While bearish in the short term, it’s not completely outrageous to assume that they would eventually allow bitcoin payments.

Senator Elizabeth Warren made waves this week by noting that bitcoin and other cryptocurrencies were putting financial control in the hands of “super dark coders.” Many of his remarks and misconceptions during the week turned out to be misinformed and bearish. However, she made sure to mention that crypto would pave the way for financial inclusion for the unbanked.

The US Senate is currently busy trying to pass its $ 1,000 billion infrastructure bill, which includes a provision to regulate and tax crypto. This can turn out to be very bearish and many Bitcoiners have spoken out against the bill. Hopefully the Senate will come to its senses, otherwise it will see Bitcoiners and Bitcoin-focused companies leaving the United States in droves.

Finally, while not necessarily bearish, Bitcoin’s mining difficulty has increased for the first time since May as miners relocate to new territories after the Chinese crackdown. With countries like Kazakhstan, Paraguay and several US states welcoming bitcoin miners with open arms and favorable regulations and incentives, it is likely that mining will now be better distributed around the world. The slight downside here is that any increase in mining difficulties can cause inefficient miners to sell part of their holdings.

Verdict

It’s been a good week for Bitcoin and the best is yet to come. The fact that bitcoin has remained stable around $ 40,000 is good news, although the regulation planned by the US infrastructure bill around bitcoin is the most important factor in negatively affecting its price and its outlook for the future. short term.

If you bought the dip last week, you’ve already seen a decent return. But the best is yet to come. Bitcoin is a long-term investment and the whole point of bitcoin is not short-term wealth, but rather long-term financial freedom. If the United States ends up pushing its “ball down”, it won’t be the end of the world.

This is an article invited by Dion Guillaume. The opinions expressed are entirely theirs and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.

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