Cryptocurrency rally: Bitcoin drops below $ 60,000 and Tesla’s Elon Musk turns around again

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Happy to see you again,

It has been a hectic week in the crypto world, with bitcoin falling to $ 58,000, its lowest level in two weeks. Although the popular cryptocurrency has recovered and traded above the $ 60,000 mark for most of the week, questions remain about the sustainability of bitcoin’s comeback.

Here are the best stories that caught our attention.

Bitcoin fell below $ 60,000 this week

After a series of factors, including the approval of a bitcoin ETF, which has helped bitcoin cross $ 60,000 in recent days, the popular cryptocurrency has fallen below $ 60,000 again this week.

The cryptocurrency traded as low as $ 58,113 this week, just a week after the cryptocurrency hit a new all-time high of nearly $ 67,000 last week.

This means that the cryptocurrency honeymoon period could potentially come to an end.

Bitcoin was the darling of the markets at the start of the year before a number of countries like China announced a tougher review of the sector and even ban cryptocurrency mining in China. The political U-turns of popular figures such as Tesla’s Elon Musk have also kept the cryptocurrency volatile.

Still, bitcoin has grown by over 116% since the start of the year.

Tesla could accept bitcoin again

That being said, in another apparent U-turn, Elon Musk does not appear to have completely abandoned crypto payments yet. The company said this week in the release of its third quarter results that it may accept payments using cryptocurrencies for its services and products at some point in the future.

“We may in the future restart the practice of transactions in cryptocurrencies (‘digital assets’) for our products and services,” Tesla said in the filing.

The comments come as Tesla’s market cap surpassed the $ 1,000 billion mark this week.

The company also said it bought $ 1.5 billion worth of bitcoin in the nine months ending September 30.

“In addition, during the three months ended March 31, 2021, we have accepted bitcoin as payment for the sales of certain of our products in specified regions, subject to applicable laws, and suspended this practice in May 2021” , indicates the folder.

Musk’s comments and U-turns are both important to the cryptocurrency world, as a number of endorsements and announcements such as Tesla buying $ 1.5 billion worth of bitcoin earlier this year, has been a key factor in propelling bitcoin and other cryptocurrencies to record highs. .

Crypto markets were badly hit earlier this year when Musk signaled that Tesla would not accept bitcoin as payment over concerns that bitcoin mining is bad for the environment.

El Salvador bought $ 25 million worth of bitcoins

El Salvador has added 420 more bitcoins to its official $ 25 million bitcoin wallet, the country’s President Nayib Bukele revealed in a Tweet this week.

The latest purchase sets the stage for a total of 1,120 bitcoin coins nationwide.

The buy can be seen as an attempt to capitalize on bitcoin’s drop to $ 58,000 this week.

The purchase also follows El Salvador’s purchase of 150 coins in September, when the country became the first in the world to officially adopt bitcoin as legal tender.

In September, the Salvadoran government began building bitcoin vending machines and established a $ 150 million fund to facilitate the exchange between bitcoin and the U.S. dollar.

The decision to make bitcoin legal came because El Salvador is heavily dependent on remittances, and the government hoped that making bitcoin the country’s official currency would make it cheaper to send money overseas.

However, the country’s adoption of bitcoin has been marred by chaos and even mass protests.

Here’s what happened in the cryptocurrency market over the past seven days:

Bitcoin is stable at $ 61,899. Ether is up 9% to $ 4,382. Dogecoin is up 19% to $ 0.29. Cardano is down 6% to $ 2. Solana is up 6% to £ 200. Iran to pilot its central bank digital currency

The Central Bank of Iran will soon pilot its own “national cryptocurrency,” according to Bitcoin.com. The Islamic Republic “is studying the potential risks and rewards” and will launch it “once the Currency and Credit Council approves it,” said Ali Salehabadi, the governor of the central bank.

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