Bitcoin continues to recover as it enters its longest winning streak for this year. With a rise of 5.8%, the cryptocurrency has managed to cross the $40,000 mark today. Pankaj Balani, CEO of crypto derivatives exchange Delta Exchange is bullish on the $45,000 mark while $50,000 will take some doing. Amidst the criticism for mining bitcoin, companies like Twitter, Amazon have revealed plans to incorporate cryptocurrency.
Jack Dorsey of Twitter said that bitcoin will be an important part of Twitter’s future as he sees the opportunity to integrate cryptocurrency into the existing products and services of Twitter. Details have not been revealed on the implementation of this idea. Together with JayZ, Dorsey launched a $23.6 mn bitcoin fund. He also announced plans to lead Square into the decentralised financial services market using cryptocurrency.
The recently passed law making bitcoin legal tender in El Salvador will take effect on Sept 7, President Nayib Bukele said in a national address. With this law, El Salvador will become the first country to accept bitcoin as a legal tender. However, the use of bitcoin will be optional. Salaries and pensions will continue to be paid in USD. Bitcoin plan’s to invest $1 mn to set up 1500 cryptocurrency ATMs in El Salvador, which will help to buy bitcoins or sell them for cash.
Bitcoin, following the concerns of China’s ongoing crackdown, fell below $30,000 for the first time in five months. The unit later stood at $29,590, down 9.25% in value. Bitcoin has also faced criticism over environmental concerns as its mining requires fossil fuels. Nearly 80% of trade in cryptocurrency is powered by Chinese mines, but in recent months several mines have been shut down as Beijing is being alerted of the industry. Last week 26 mines were closed down.
Over 1,100 suspects were arrested by Chinese police for using cryptocurrencies to launder illegal money. After the recent step-up in a crackdown on cryptocurrency, police made these arrests in an attempt to weed out the use of digital currency in crimes. Over 170 criminal groups have been busted by the cops. These groups charged 1.5% to 5% for converting black money into cryptocurrency. The anonymous nature of digital currencies makes them easy to use for cross-border money laundering.
A large number of widely followed crypto-related social media accounts were blocked by the China government on Weibo, a Twitter-like local micro-blogging platform, over the weekend. The crackdown comes as China’s central bank is ramping up the testing of its own digital currency. The Chinese government wants no version of Elon Musk in the Chinese crypto market. China’s Xinhua news agency recently exposed a series of crypto-scams.
On Sunday Bitcoin faced another huge sell-off that caused it to fall 13% and overall by almost 50% since hitting the peak in April this year. Ether also faced a tough time as it dropped by 17% on the day. The Crypto market has taken a hit since Elon Musk’s tweets on Tesla not accepting cryptocurrencies as payments. Recently China imposed a ban on banks and financial firms on providing crypto-related services which further affected the crypto-market.
China has barred financial institutions and online payment service providers from offering any service related to cryptocurrency. Services barred include trading, registration, settlement, and clearing said the local industry bodies in a joint statement. People can hold cryptocurrency but exchanges and initial coin offerings have been banned. China has warned investors against crypto trading due to the volatile nature of trade and contracts not being covered by Chinese law.
Bitcoin, following Elon Musk’s tweet, rallied from a three-month low in a session that went back and forth. Musk, however, clarified speculations and said Tesla has not sold any bitcoins. On Monday bitcoin dropped almost 9% but rallied back to more than 5%. Ether dropped to $3,123.94 and dogecoin dropped nearly 7%. Ever since Musk tweeted about Tesla not accepting payments in bitcoins for cars, bitcoin has dropped by almost a quarter.