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
During what should have been a positive week for bitcoin, we saw some declines and sideways actions. Despite this, El Salvador continues to grab the headlines as the country continues to buy the decline and citizens continue to queue for “coins.”
With the global economy reeling from scandals, rising inflation and looming economic recession in some of the major countries, it seems almost inevitable that investors big and small will start hoarding bitcoin. as protection against economic turmoil, which is sure to send the price up.
Bullish news despite the decline
Last Friday, US President Joe Biden said that if the United States hits its debt ceiling by the end of October, the United States could enter an economic recession, which would likely prompt investors to rush into the bitcoin as the US dollar enters a state of economic crisis. .
This week started on an upbeat note when the President of El Salvador, Nayib Bukele, announced on Twitter that the the country had bought the drop, buying an additional 150 BTC, bringing their total holdings to 700 BTC. He even offered some “presidential advice” by tweeting, “They can never beat you if you buy the dip.”
Soon after, Bukele said the country’s Chivo bitcoin wallet had more than 1.6 million users, just two weeks after El Salvador officially adopted bitcoin as legal tender. This means that more than 25% of the total population of the Central American nation now uses the Chivo wallet. In the days that followed, photos of people lining up to use some of the 200 bitcoin vending machines settled in El Salvador have spread on social media, confirming the country’s growing appetite for bitcoin, although the rush may have come from those who cash in in USD.
On Tuesday, BTG Pactual, an $ 80 billion investment bank in Brazil, launched a crypto trading app, becoming the first major financial institution in Brazil to offer its clients direct exposure to bitcoin. The bank has a history of creating precedent in Brazil. In April 2021, BTG Pactual also became the first Brazilian investment bank to launch a bitcoin and crypto fund.
Also on Tuesday, the controversial Robinhood trading app announced it was testing bitcoin withdrawals with a new digital wallet to meet increased user demand. No firm date has been set for the official deployment of the feature to their users. Later in the day, mining giant Genesis Digital Assets announced that it had raised $ 431 million in funding to expand its mining operations in the United States and the Nordic countries. The company raised $ 125 million in funding just two months before the announcement.
Dutch football giant PSV announced on Wednesday that it had an undisclosed amount of bitcoin on its balance sheet after a sponsorship deal with the Anycoin digital exchange saw the team pay in bitcoin. “The possibilities and the future of the cryptocurrency world are very bright,” said Frans Janssen, PSV chief commercial officer. Also on Wednesday, it was revealed that the UAE government would allow tax-exempt bitcoin trading in certain economic zones in its capital, Dubai.
Twitter on Thursday “broke” the internet when it began rolling out a social media bitcoin failover service in partnership with Strike. Although initially only available to iOS users, the company said in a statement that it hopes to roll out the feature to desktop and Android users in the coming weeks.
Also Thursday, the The University of Wyoming has confirmed it is mining bitcoin. It comes after the Wyoming legislature announced in April that it had earmarked $ 4 million for crypto staking, which would be managed by the University of Wyoming.
Finally, as news of China’s latest crackdown on cryptocurrency trade surfaced, U.S. Senator Pat Toomey said China’s crackdown on cryptocurrencies such as bitcoin is a “Huge economic opportunity for the United States. “
Bearish news contributing to the downside
Bitcoin has seen its ups and downs over the past week as global markets reeling from news of the impending collapse of Evergrande, a $ 300 billion real estate giant based in China. Although bitcoin briefly dipped below the $ 40,000 mark, the price quickly recovered – until Friday, that is.
The Chinese government cracked down on cryptocurrencies again on Friday, claiming it is illegal to trade cryptocurrencies in the country. This is hardly news as China has shared the same sentiment on several occasions since 2012. Markets have reacted negatively, despite the announcement that Twitter is embedding bitcoin cheats on the platform.
News from Twitter that finally rolled out bitcoin tricks in partnership with Strike should have sent bitcoin on a decent run, but the Chinese government was unable to allow the opportunity to spread FUD, despite the giant’s impending collapse. Evergrande real estate, which represents almost 2% of the country’s GDP.
What was interesting were US President Joe Biden’s remarks last Friday, just as the week drew to a close. Biden said if the United States hits its debt ceiling by the end of next month, the United States will enter an economic recession. Who would have thought that printing money continuously during a global pandemic wouldn’t come back to haunt them?
It seems very likely that the United States will in fact enter a recession that will likely encourage more institutional investors and state-owned companies to embrace bitcoin as a hedge against economic turmoil. This is likely the catalyst that sends bitcoin on an upward trajectory, entering the six-digit mark, breaking many analysts’ predictions of a bitcoin price of over $ 100,000.
Although an entire country adopted bitcoin this year, almost countless companies are adding bitcoin to their balance sheets and billionaire investors praise it every week, bitcoin hasn’t hit its May highs, let alone. heights we expect for the coming year. But, just as the 2008 financial crisis inspired Satoshi to invent bitcoin, growing crises around the world will likely push bitcoin to new heights …
This is an article invited by Dion Guillaume. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.