The word “unpredictable” is almost the most term used when talking about the crypto world. And although the crypto industry has recently received a great confidence boost by El Salvador and Paraguay's move to accept bitcoin as legal tender, the rocky road that Bitcoin is going through continues. And from our end, we’ll list 3 reasons why we think bitcoin price cannot surpass $40K support level.
Analysts argue that there are mainly 3 reasons behind the delayed rally of bitcoin. The first one is the strengthening of the US dollar. Bitcoin, like many commodities, has the tendency to move inversely as opposed to whatever the dollar is doing. The second reason is the low trading volumes due to the crackdown by the Chinese government and the news about the new waves of COVID variants that are now taking a toll on all markets. Lastly, the low appetite from institutional investors.
And on the enthusiastic side of the crypto world, Elon Musk's love affair with crypto continues as he dropped another bomb at The B Word conference that might change all the analysis we just mentioned above😕.
Musk’s SpaceX Owns Bitcoin!
Speaking at “The B Word” conference hosted by the Crypto Council for Innovation, crypto enthusiasts and DOGECOIN advocate, Elon Musk, Revealed that his rocket company, SpaceX, owns bitcoin and has no plans to sell any of it, while his other electric car company, Tesla, might resume bitcoin payments if BTC became “Greener”.
The Technoking of Tesla also unveiled for the first time ever that he personally owns crypto saying: “I do personally own a bit of Ethereum, and Dogecoin of course… I would like to see bitcoin succeed.. If the price of bitcoin goes down, I lose money. I might pump but don’t dump.”
Consumers Globally to Embrace CBDC
Consumers globally are growing significantly receptive to the CBDC issued by governments.
A study by leading European deep tech company Guardtime shows that 'across 10 countries including major European and Asian economies in addition to the US and the United Arab Emirates found 64% of adults would be likely to use a digital currency launched by their country’s Central Bank and Government with 33% saying they would be very likely to use one'.
However, they won't easily ditch cash as 31% of the adults in the study said they 'would be willing to carry out more than half of their transactions through CBDCs within a month of a successful launch with 28% willing to do so within one to six months'.
US Lawmakers Won't Allow Olympic Athletes to Use Digital Yuan at 2022 Beijing Winter Games
According to Cointelegraph, three US senators sent a letter to Olympic officials urging them to disallow American athletes from using the digital yuan during the 2022 Beijing Winter Games saying that this is ''to protect the privacy of American athletes from the Chinese Communist Government."
“We cannot allow America’s athletes to be used as a trojan horse to increase the Chinese Communist Party’s ability to spy on the United States,” Senator Cynthia Lummis told CoinDesk.
Podcasts Worth Listening to
- What is Hedging? Ahamd Sharkatly, Kalam Mushafar
- Is the Bitcoin Bull Market Over? Nathaniel Whittemore, The Breakdown.
- Lyn Alden: Bitcoin Has Proven Itself Over Time – Natalie Brunell, “Coin Stories.”
Disclaimer: The Cryptocurrency market is considered highly speculative, risky, and largely unregulated. Anyone mulling investing in it, should be aware there's a risk of losing their entire investment.
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