Bitcoin's bouncebackBitcoin bounces back up as the crypto market rebounds from a short-lived Omicron sell-off.
- Bitcoin climbed back above $58k on Monday after lifting 6.6% over the weekend, bringing big dogs like Etherum (ETHUSD), Solana (SOLUSD) and Polkadot (DOTUSD) along for the ride.
- The global crypto market lost 7.9% on Friday after a new Covid strain made headlines, officially sending Bitcoin into bear market territory.
- Crypto is still crushing it this year though, posting record inflows of $9.5 billion so far – up 30% from 2020’s total.
Illustration by TradingView
Bitcoin plummets amid Covid fearsCrypto is suffering as new strains of Covid send investors fleeing to the safety of conventional assets.
- Bitcoin slipped below $53k in Friday morning trading, its lowest in six weeks.
- The price nearly hit $60k on Thursday, but got scared off by selling pressure. Crypto liquidations hit $630k in 24 hours.
- On the plus side, Bitcoin now handles more volume than Paypal ($489bn per quarter compared to $302bn). So there’s that.
Illustration by TradingView
Another day, another banCrypto goes down as Southeast Asia’s largest economy becomes the latest in a long list to come down hard on the industry. Except this time, it's with a twist.
- India will ban all private cryptocurrencies if a new proposed bill goes through, but plans to replace them with its own digital currency.
- There are up to 20M crypto investors in India, with holdings totalling around $5.39bn.
- The big dogs edged down, suffering a pullback from a recent rally. Bitcoin was down 3% in early Wednesday trading to below $56k, Cardano (ADAUSD) lost nearly 5%, Solana (SOLUSD) lost over 7% and Ethereum (ETHUSD) lost 2%.
What happens in Bitcoin city...El Salvador’s President takes yet another historic step in Bitcoin adoption.
- El Salvador plans to launch a tax-free “Bitcoin City” backed by $1bn in planned Bitcoin bonds. Construction is due to start in 2022 and VAT will be the only duty.
- The IMF is worried, warning that allowing the volatile currency as legal tender exposes the entire country to economic instability.
- Crypto is sinking this week. Bitcoin and Ethereum (ETHUSD) both lost 4% on Monday and Solana (SOLUSD) and Polkadot (DOTUSD) saw losses of around 6%.
Bitcoin battles another day in the redAfter a breathless rally, the crypto market has slowed. Buyers take their winnings, while analysts think more losses could be on the way.
- Crypto dipped again on Thursday. Bitcoin bottomed out at around $57k after losing 5%, Ethereum (ETHUSD) was down 6%, Solana (SOLUSD) sank nearly 12%, and Polkadot (DOTUSD) plummeted over 8%.
- Both BTC and ETH reached all-time highs earlier this month as the crypto market soared to a $3tn market cap. As the non-HODLers took profits, the market went back down to $2.7tn.
- Analysts are still bullish in the long-term, but warn of more volatility to come as China cracks down harder on mining and Biden starts taxing crypto.
Can Bitcoin make it on the global stage?The global government stage is pretty split on crypto, and while Bitcoin settles in as legal tender in some places, India decides to find a middle ground.
- India is banning crypto as a payment method, but people will still be able to trade digital assets under new regulations.
- The President wants to build a “Digital India”, but everyone is arguing that would mean adopting the currency as tender like El Salvador or (soon to be) Ukraine.
- The U.S. is still battling with how to regulate digital assets, and Biden is taking steps with new crypto tax regulations getting signed into law.
Naveed Ahmed / Unsplash
Sticks and stones..Bitcoin gets depressed after Twitter’s CFO threw shade at the crypto market, losing 6% in Wednesday morning trading.
- Investing in crypto “doesn’t make sense” right now according to Twitter’s Ned Segal, who doesn't see why you’d give up a stable investment for such a volatile market.
- Apparently words do hurt. Ether (ETHUSD), Cardano (ADAUSD), Doge (DOGEUSD) are all down around 10% in morning trading, and smaller altcoins like Shib (SHIBUSD) and Solana (SOLUSD) have lost around 13%.
- There are other factors at play. A bunch of cryptos hit all-time highs last week, so people will be taking profits.
Tapping into a new futureBitcoin activates the network’s first major upgrade since 2017, but prices keep their celebrations low-key with gains of 1.7%.
- The long-awaited Taproot upgrade is finally here, which should increase real-world use for the crypto.
- Taproot unlocks the potential for smart contracts, which allow businesses to really operate on the blockchain and are already the biggest driver for innovation on the Ethereum network.
- Some analysts think the upgrade will send Bitcoin soaring to highs of $90k, while others think its benefits are already baked into the price – only time will tell, but it’s been a slow start.
Welcome to MiamiMiami makes history as the first city to hand out free Bitcoin as a dividend on its very own city crypto.
- Miami is filling residents’ digital wallets with Bitcoin yields from staking its own currency, Miami Coin.
- Miami was the first city to launch its own crypto back in August to raise money for the city, and it’s already brought in $21m.
- It’s all part of its plan to be the crypto capital of the world. The profits could soon be enough to cover the whole city’s taxes. Others are already jumping on the bandwagon, and NYCoin is coming soon.
The inflation hedgers are getting louderBitcoin carved out fresh highs on Wednesday after inflation levels hit a 31-year peak.
- CPI data was up 0.9% in October and 6.2% since last year, the highest rate of annual inflation since 1990.
- Bitcoin popped to $69k for the first time on Wednesday as people scrambled for a hedge against rising costs. Because nothing unexpected ever happens in the crypto world…
- “This could bode well in the near-term as the inflation data may get worse before it gets better,” says Oanda analyst Craig Erlam.
Bitcoin bigs it up in AsiaMastercard (MA) is taking Bitcoin into Asia with a new series of crypto-linked cards.
- Hong Kong’s Amber Group, Thai crypto exchange Bitkub and Australian platform Coinjar will partner with Mastercard’s global Crypto Card Program to provide debit cards that convert cryptos into hard currency.
- Asia-Pacific is a crypto hotspot. 45% of consumers plan to use digital tokens in the next year, up from 12% in 2020 and higher than the 40% global average.
- Bitcoin hit a high of $68,564 on Tuesday and is up over 8% for the month already, after gaining 40% in October.
No end in sight for BTC bounceBitcoin bulldozes past the $68k mark while waiting for new construction this week, taking the crypto market swinging up to new highs.
💰 The OG currency hit a record $68k on Monday, and the crypto market came riding in on its coat tails to break a $3trn market cap. That’s a 280% jump from January.
🆕 Bitcoin’s about to activate its biggest upgrade since 2017. The Taproot upgrade is due to streamline smart contracts and privacy settings.
🌏 The upgrade should increase real-world use, which is key to mainstream adoption.
Bitcoin isn’t holding its weightJack Dorsey’s Square failed to sharpen its edges this quarter, and Bitcoin was a big part of why.
🎢 Square reported third quarter earnings that took a major blow from lower-than-expected Bitcoin revenue after a rollercoaster quarter for the crypto.
💰 Bitcoin brought in $1.8 billion, nearly $1 billion below expectations and down from the second quarter.
🐂 Square don’t care and continues to be “focused on Bitcoin” over other currencies, probably because the boss is one of the biggest Bitcoin bulls out there.
The future is goldenJP Morgan (JPM) doubles down on its January prediction that Bitcoin could replace gold as a new inflation hedge.
• The bank backs the bulls. It thinks Bitcoin could reach $146k to become an “alternative currency.”
• That’s a 130% upside to Wednesday’s $62,930 closing price.
• It’s a bit of a U-turn given that JP Morgan (JPM) CEO Jamie Dimon is famously anti-Bitcoin.
Bitcoin’s brilliant OctoberBitcoin has its best month all year, with October closing up just under 40% after reaching new highs.
Bitcoin has beat its incredible Q1 rally with its October gains, soaring nearly 40% for its best month since December 2020 and its first monthly close above the $60k mark – the crypto was boosted by seasonal optimism and excitement over the launch of the first ever Bitcoin futures EFT. Jehan Chu, managing partner at Hong Kong-based Kenetic Capital, warned though that bond tapering could get a bad reception on the market:
Bitcoin bullish sentiment remains at fever-pitch, highlighted by NFT. NYC whipping the financial capital into a frenzy. (However), if public markets falter on the back of Fed bond purchase tapering, BTC could be dragged into a small correction after breaching all-time highs last week.
The Federal Reserve is holding a meeting on Wednesday that is likely to shine more light on when the government will begin the tapering of its monthly $120 billion asset purchases. Interest rates could also weigh down the crypto market, especially after Goldman Sachs brought forward its forecast for interest rate hikes from 2023 to July of 2022.
After reaching record highs of $67k on October 20, Bitcoin is trading back down around levels of $61,000.
Bitcoin inflows bask in the ETF gloryCrypto fund inflows have hit a record high of $1.5 billion as the market basks in the glow of recent futures-based ETFs.
Investors sunk $1.27 billion into digital assets last week on the back of the debut of two new Bitcoin futures exchange traded funds last week, which took Bitcoin to new highs of over $67k. The last record was held by a week in February that saw $640 million in inflows, and Bitcoin dominated last week’s crypto funds inflows with a share of over 99%. A report by Coinbase said:
This is a direct result of the U.S. Securities and Exchange Commission (SEC) allowing a bitcoin ETF investing in futures and the consequent listing of two bitcoin investment products.
Bitcoin closed Monday back down around $63k as the market cools off from its hot streak.
Illustration by TradingView
The Bitcoin futures buzz quietens downA futures ETF-fuelled rally took Bitcoin to its all-time high on Wednesday, but the buzz has died down since then and Bitcoin spent the end of the week in decline – even as a second futures-backed ETF debuts.
After peaking at an all-time high of $67,016.50 on Wednesday, Bitcoin pulled back and sank down nearly 8% for the second half of the week. The rest of the crypto market started to flatten out too after seeing its over-all value soar past $2.7 trillion for the first time. The rally was prompted by the debut of the first ever Bitcoin futures exchange traded fund on Tuesday, but nobody was talking much about the quieter debut of a second futures backed ETF – the Valkyrie Bitcoin Strategy ETF saw a muted first day of trading on Friday, falling 2.8% after over $3.1 million shares traded hands. Stephane Ouellette, chief executive and co-founder of FRNT Financial Inc., said:
There does seem to be a first mover advantage that plays out. I wouldn’t intuitively think that the performance of the next one or one after is all that important from the perspective of the milestone for the asset class.
Bitcoin ended the week at $60,910.16, but despite the pullback, the market is still feeling bullish, with analysts predicting prices could hit up to $100,000. Fundstrat analysts wrote:
Initial upside targets for Bitcoin above $65,000 lie near $72,500, then $89,000, and thought to be definitely within reach on this breakout of former peaks.
Illustration by TradingView
Binance sees a crypto flash crash, warns of volatility aheadAfter a Bitcoin flash crash on crypto exchange Binance on Thursday, its CEO warns of more volatility ahead.
A client’s trading algorithm blooper sent Binance into a flurry on Thursday after Bitcoin’s price briefly plummeted 87% to just above $8k on Binance U.S., just after hitting its record high of over $67k on Tuesday. It was only Binance that was affected, with other exchanges showing a low of just above $64k in that same one minute slot. Though it was just Binance affected, the price of Bitcoin took a hit on Thursday and tumbled 5.71% after a four day rally, and took Ethereum (ETHUSD) down with it as the second-largest crypto lost 2.59% after sinking 11% in one minute along with Bitcoin. The exchange said the momentary crash was because of a bug in an institutional trader’s algorithm and said the problem had been fixed, but Binance chief executive Changpeng Zhao warned to expect high volatility in the coming months nonetheless. Crypto traders were less than impressed, with one commenting:
Good thing Americans are forced on to these dogsh*t exchanges where they can get completely scammed on unreasonably thin books. This type of sh*t just shouldn’t be happening. It’s not fair that some get stopped out and some stay in, some get fills and some don’t.
Bitcoin ended Thursday at $62,219.44, while Ethereum (ETHUSD) ended the day just above $4k after peaking just $5 under its all-time high.
The rest of the crypto crew joins in on the rallyAs Bitcoin hits its highest price on record on Wednesday, so the rest of the crypto crew has joined in on the fun, taking the market’s value up past $2.7 trillion for the first time.
Bitcoin prices have been on a bull run this month, shooting past its record high to close Wednesday at just below $66k on the back of ETF excitement, and on Wednesday the rest of the crypto market decided to get in on the goods – Ethereum (ETHUSD) lifted 7.36% to close above the $4k mark for the first time mid-May as it attempted to catch up with the OG currency, Dogecoin (DOGEUSD) lifted 3.31%, Cardano (ADAUSD) was up 3.72% for the day, and Solana (SOLUSD) ended the day up a whopping 13%. The group rally shows how much the appetite for mainstream crypto adoption has increased with the debut of the first Bitcoin futures ETF. The jump led the value of the overall crypto market to an all-time high of $2.7 trillion – up around $200 billion from its May high.
Bitcoin closed Wednesday at $65,990.31 after peaking at $67,016.50, soaring past its previous all-time high of $64,895.22. As pleased as crypto fans are, analysts warn that Bitcoin could be overbought. Hedge fund manager Mark Yusko said:
I wouldn't be surprised by a little consolidation. Look, we're up 40% this month which is only 15 days old—a 'pause that refreshes,' given how overbought we are right now, wouldn't surprise me. There is some risk of the 'buy the rumor, sell the news’.
Bitcoin history in the makingProShares Bitcoin Strategy makes history as trading begins on the first Bitcoin Futures ETF, taking Bitcoin to its highest closing price ever.
The new ProShares Bitcoin Strategy ETF launched on Tuesday, and Bitcoin celebrated by jumping 3.54% and closing at $64,241.61, its highest closing price ever. The fund tracks Chicago Mercantile Exchange (CME) Bitcoin futures, which means investors bid on the future price performance of the crypto instead of in actual coins themselves.
The historical ETF popped over 3% during its first day of trading, bringing in around $570 million in assets and seeing around $1 billion in trading volume on the day – the second heaviest traded new ETF ever. Dave Nadig, chief investment officer and director of research of ETF Trends, said that a lot of the interest came from retail investors, adding:
This is probably going to be what we all expected, which is it’s an access vehicle for certain players in the marketplace. There’s lots of folks who are active participants in the markets who just don’t want to cross over the crypto bridge by themselves.
Bitcoin has been on a bull run of late, lifting over 45% for October so far, largely on the back of excitement for the chance to follow a Bitcoin fund. The digital currency popped to close at $64,241.61, peaking just $400 under its highest ever price.
The calm before the stormBig things are coming for Bitcoin, and Tuesday marks the opening of trading for the first-ever bitcoin futures ETF. The crypto spent the weekend trading horizontally around $61k as investors wait for the ground-breaking moment.
Tuesday is set to be a big day in the world of Bitcoin as the ProShares Bitcoin Futures ETF – which will let investors bid on the future price performance of the crypto instead of in actual coins themselves – is set to debut. There were a few other hats in the ring, but Invesco has just pulled out of the race and withdrawn its application. Anticipation has sent the coin crazy, up over 40% for October alone to be the best month of the year so far. The weekend has seen a calm before the storm, with prices trading flat on Monday, but that doesn’t mean there aren’t things going on behind the scenes – investors have been piling into crypto funds in anticipation for the last week or so, and total assets under management in crypto funds are sky high at the moment. The rush of fresh capital has taken total assets under management to around $72.3 billion, the highest on record.
Bitcoin ended Monday up 0.81% at $62,034.65.
Will Bitcoin hit $150k in the face of a new ETF?The possibility of a futures ETF has taken Bitcoin into a frenzy, closing above $61k for the first time in months, and analysts see $150k on the way – not before a possible buying-induced pull back though.
The coming weeks hold the possibility of a number of Bitcoin Futures ETF debuts, sending the crypto market hitting a $2.5 trillion valuation and Bitcoin closing above $61k for the first time since mid-April. The ETFs would be featured on a regulated venue like the Chicago Mercantile Exchange (CME) and would let investors bid on the future price performance of the crypto instead of in actual coins themselves. After looking at price data from the last nine years, crypto author Glen Goodman sees Bitcoin hitting $150,000 in the long term, with the caveat that the cycle will also likely see the coin tumbling back down to lows of $20,000 at some point, saying:
This is the big big #Bitcoin picture. *If* this repeating pattern continues, the top end for $BTC this cycle is ~$150,000, and return to the bottom line would be ~$20,000.
Goodman isn’t alone with his prediction of a possibly pullback, with Pankaj Balani, chief executive officer of crypto-derivatives exchange Delta Exchange, adding:
It won’t be surprising to see some profit taking come through around those levels as traders might look to sell the news. Overall the volatility on Bitcoin is going to be high irrespective of how the decision plays out.
Analysts are predicting a “ludicrously strong” bull run into the fourth quarter. Nick Spanos, and the creator of the Bitcoin Center NYC and co-founder of decentralized network Zap.org, said:
Bitcoin, ethereum and the broader crypto market are likely to have a ludicrously strong Q4, and I predict we will see new all-time highs across the board by 2022.
Simon Peters, crypto-asset analyst at investment platform eToro, added his two cents:
After a week of building expectations and momentum, bitcoin has hit $60,000 again for the first time in almost six months. (Yesterday's) spike appears to have been triggered by investors’ growing confidence that U.S. regulators will approve the launch of an ETF based on bitcoin futures contracts—but a rise past $60,000 has been looking likely for a while now after weeks of positive net inflows into bitcoin from institutional investors, a growing migration of bitcoin from short-term holders to long-term holders, and the attendant squeeze on bitcoin supply.
Bitcoin closed Sunday at $61,538.97.
Bitcoin gets its groove back on ETF hopesBitcoin reclaimed the $60K in early Friday morning trading as investors became increasingly bullish on the approval of a Bitcoin Futures ETF this week.
Bitcoin hit the $60k milestone for the first time since mid-April in the early hours of Friday morning trading after news hit that the U.S. Securities and Exchange Commission is poised to authorize the first Bitcoin futures exchange traded fund (ETF) to start trading as early as next week. Crypto fans have been waiting for a Bitcoin ETF since the first application was made in 2013, but regulators are refusing to budge and continue to call for further oversight – however, it looks like proposals from ProShares and Invesco for a futures based ETF might get the green light to start trading next week. On top of that, fund manager Valkyrie just made a suspicious update to its ETF prospectus that hints at an upcoming launch, and the SEC's investor education office tweeted advice about how to invest in Bitcoin futures, saying:
Before investing in a fund that holds Bitcoin futures contracts, make sure you carefully weigh the potential risks and benefits.
It’s safe to say investors are feeling confident. Ben Caselin, head of research and strategy at Asia-based cryptocurrency exchange AAX, said:
It is widely expected that Q4 will see significant progress around a bitcoin ETF in the U.S.
Investors aren’t the only ones getting ready for the possible launch, and the currency has seen a rush of institutional investment recently. Noelle Acheson, head of market insights at Genesis Global Trading, added:
We have seen more institutional build up, especially in the past few weeks, than we have at any time since the (bitcoin price) crash back in April.
Crypto funds have already been launched in Europe and Canada. Bitcoin is trading around $59k on Friday morning after its brief stint at $60,000, up 3.35% for the day so far.
The U.S. is the new crypto mining KingThe U.S. takes over as the biggest bitcoin mining hub in the world after Beijing sent miners scrambling for a new home.
The U.S. has overtaken China as the world’s biggest source of Bitcoin mining after Beijing’s ban on crypto two months ago kicked off the great mining migration. China used to be the biggest mining base in the world, but over May and July its share of the global hashrate – which basically means the amount of energy needed to mine the cryptocurrency – fell from 44% to zero. Another contender in the race is Kazakhstan, which has seen its share increase from 10% to 18% in that same period.
Just because miners seem to have survived being booted by Beijing doesn’t mean that there are any fewer regulatory obstacles to contend with. The U.S. government continues to consider increased crypto oversight, and the Bank of England has called crypto out as a risk to the global financial system. The crypto market has grown at unprecedented rates, increasing over 200% this year alone, and lifting from just $15 billion five years ago to boast a $2.3 trillion market cap as of this month. The quick growth is a concern to BOE Deputy Governor Jon Cunliffe, who is calling for urgent regulation after pointing out that the crypto market is double the size of subprime debt in the U.S just before the 2008 financial crisis. Cunliffe said:
You don’t have to account for a large proportion of the financial sector to trigger financial stability problems. When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice. In that case, the knock-on effects of a price collapse in a relatively small market was amplified and reverberated through an un-resilient financial system causing huge and persistent economic damage.
After spending Tuesday in the red, Bitcoin bounced back on Wednesday and broke back through the $57k mark, ending the day up 2.46%.
Lians Jadan / Unsplash
Is the bull run getting reigned in?Bitcoin is up over 25% for October, but analysts are watching a counter-trend signal that could stop the bull run in its tracks.
There’s been much excitement around Bitcoin’s bounceback, but Farlead Strategies Katie Stockton is warning of choppy waters ahead. Bitcoin’s rally this month has taken the stock into overbought territory, leading to a counter trend signal that is similar to one seen in January – after which the currency fell around 25%. Stockton warned that there could be a pullback of around 15% back down to $48,000, but is optimistic that prices will run up to their previous $60k highs not long after. After January’s 25% losses, Bitcoin went on to spend three months reaching unprecedented highs.
She’s not the only bear out there growling about Bitcoin – JP Morgan’s chief executive Jamie Dimon called Bitcoin “worthless”, and the CEOs of the tech world have some things to say. In reaction to Dimon’s comments that people haven't read the algorithms behind the crypto currency, Coinbase CEO Brian Armstrong tweeted:
Yes, I read it. And then I wrote it (coding up our own Bitcoin node) to make sure I understood it.
Twitter CEO Jack Dorsey responded:
I personally think that Jaime Dimon is worth more to Bitcoin…
Billionaire hedge fund manager Mike Novogratz called Dimon’s views “sophomoric”:
So strange. For a man who has done a brilliant job running a giant bank, his answers around $BTC are sophomoric and he keeps doubling down on them.
Bitcoin closed 2.59% on Tuesday and sank below the $55k mark in early Wednesday morning trading.
Bitcoin ignores the bears to bust through $57kJPMorgan's Jamie Dimon says “bitcoin is worthless”, but Bitcoin doesn't care and ends Monday up over 5% above the $57k mark.
Known Bitcoin bear Jamie Dimon, who is JP Morgan’s CEO and has voiced his distaste for Bitcoin in the past, is back at it again and has said “Bitcoin is worthless” and is due for more regulation amid the digital currency’s latest bull run. Dimon has been outspoken about his lack of respect for Bitcoin for years now, calling it a “fraud” in 2017 and “fools gold” earlier this year, even as his banking giant JP Morgan continues to roll out further support for the crypto market – the company announced plans for its own digital currency in 2019, created a new blockchain-specific unit in October 2020, and started offering its clients access to crypto funds this summer. Dimon said:
I personally think that bitcoin is worthless. I don’t want to be a spokesperson — I don’t care. It makes no difference to me. Our clients are adults. They disagree. If they want to have access to buy or sell bitcoin - we can't custody it - but we can give them legitimate, as clean as possible access.
The market has blinkers on to the bears though, and Bitcoin soared past $57k on Monday, now up over 30% for October, and closed the day at $57,485.20. Market optimism is generally bullish, with analysts watching closely to see if the currency can retake levels of $60,000 – which could lead to a massive run up. Edward Moya, senior market analyst at Oanda Corp., wrote:
Bitcoin will likely need a fresh catalyst to make $60,000 happen, but if that happens quickly, record highs might not be hard to reach.
Is the SEC warming up to the ETF idea?The SEC has just approved the closest thing crypto fans might get to a Bitcoin exchange traded fund (ETF) for now. Volt Equity’s ETF has just gotten the green light from the regulator, and will track companies who hold a bunch of Bitcoin or rely on the digital currency for profits – for example, Bitcoin mining companies, lending firms, or those businesses that focus on making mining equipment. Volt Equity CEO Tad Pak calls these “Bitcoin revolution companies”, and some of the big names Pak has his eye on include MicroStrategy (MSTR), Marathon Digital Holdings (MARA), and Bitfarms (BITF). The CEO said:
I'm a strong believer in bitcoin and was excited about launching an ETF that could take advantage of the coming bitcoin revolution. We can get exposure to bitcoin without necessarily holding the coin, especially with options positions.
Two others similar to Volt Equity began trading last week – Investment management company Invesco joined forces with Michael Novogratz’s Galaxy Digital Holdings to launch two ETFs last week that track companies that get over 50% of their revenue from crypto-related activities. The difference between those and Volt Equity is that Volt is looking to focus specifically on Bitcoin related companies, not the whole range of crypto assets.
The SEC is still weary of approving an actual Bitcoin ETF because of money-laundering fears, but investors see this as a step in the right direction. Bitcoin ended last week up 13% despite a weekend of flat trading, closing Sunday at $54,714.95.
Analysts are bullish despite yesterday’s downturnEven after yesterday’s loss, Bitcoin is up over 15% this week so far, boosted by increased buying and heightened trading volumes. Blockchain data shows that a big buy order on Wednesday was behind some of the rally, at a time when institutional investment is at a high. According to JP Morgan, institutional investors are so keen on Bitcoin that they are buying the digital currency instead of gold as a way to hedge against inflation. Analysts said:
The re-emergence of inflation concerns among investors has renewed interest in the usage of Bitcoin as an inflation hedge. Institutional investors appear to be returning to Bitcoin perhaps seeing it as a better inflation hedge than gold.
However, the good news didn't come without some bad news warning that a correction could be on the way, and QCP Capital said:
We also continue to see bearish-type trades with the spot rally. A total of 1,200x BTC end-October BTC calls were sold yesterday, followed by the buying of over 500x of 50/45k end-October put spread today. In the very short term, we might see some corrective price action in BTC.
Bitcoin closed Thursday at 53,787.60, but shot back past the $55k mark in early Thursday morning trading.
Mark Basarab / Unsplash
Bitcoin swings up from seasonal factorsBitcoin continues its banger of a week, ending Wednesday up 7.47% and to above $55k for the first time since May on the back of seasonal factors and news that a hedge fund controlled by billionaire investor George Soros trades Bitcoin.
Bitcoin has been on a bull run recently, having gained over 13% this week alone and over 25% in October so far. The digital currency has been given a boost by expectation that this month will be a good one, based purely on history – Bitcoin has closed in a profit for seven of the last nine years in October. Ruud Feltkamp, CEO of cloud-based automated crypto trading bot Cryptohopper, said:
Bitcoin performs historically well in October, which almost makes the rising ... price now a self-fulfilling prophecy. I've been saying repeatedly since the summer that I expect a new all-time high in October.
Institutional inflows have also been hitting monthly highs, with the last week in September hitting volumes unseen since May 2021 according to CryptoCompare, which wrote:
Bitcoin-based products saw the highest level of inflows out of any asset, averaging $31.2 million per week. There could be upside going into the last quarter of 2021.
The digital currency also got a helping hand by news that a hedge fund controlled by billionaire investor George Soros trades Bitcoin.
Bitcoin ended the day up 7.47% at $55,345.79.
Bitcoin bounces back above $50kBitcoin is reminding everyone who's boss, spending every session in the green this week and closing past the $50k mark on Tuesday after Bank of America called the currency “too large to ignore”.
Bitcoin soars past $50k on Tuesday gaining over 25% since last Wednesday, boosted by bullish remarks from the Bank of America. After seeing “growing institutional interest”, BofA initiated its crypto coverage on Monday and was full of positive remarks for the digital assets, saying the report found “digital assets are too large to ignore”. Analysts wrote in the report:
We believe crypto-based digital assets could form an entirely new asset class. Bitcoin is important with a market value of ~$900bn, but the digital asset ecosystem is so much more. Our view is that there could be more opportunity than skeptics expect. In the near future, you may use blockchain technology to unlock your phone; buy a stock, house or fraction of a Ferrari; receive a dividend; borrow, loan or save money; or even pay for gas or pizza.
Candace Browning, head of global research at BofA Securities, added:
If you look at the number of corporates mentioning crypto on their earnings calls, that’s gone from about 17 last year to about 147 in the most recent quarter. This isn’t just Bitcoin anymore, this is digital assets and it’s creating a whole ecosystem of new companies, new opportunities, and new applications.
Bitcoin lifted 4.59% and closed Tuesday at $51,501.19, and the rest of the market got a bump from the bullish coverage too – Etheruem (ETHUSD) ended the day up 3.91%, Dogecoin (DOGEUSD) lifted 4.23%, Cardano (ADAUSD) was up 2%, and XRP (XRPUSD) closed up over 4%.
Bitcoin ETFs face further delaysApplications for a Bitcoin exchange traded fund have been pouring in to the SEC for a while now, but the regulator has refused to budge so far and just added four new proposals to its long list of those it has delayed or rejected. The agency is extending its decision period on the applications for 45 days, saying:
The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and any comments.
Despite the fresh delays and uncertainty around Bitcoin ETFs, hope is rising that a Bitcoin futures ETF could soon be on the way. Analysts estimate a 75% chance that a futures-based Bitcoin ETF in some form could be approved this month. Senior ETF analyst for Bloomberg Eric Balchunas said:
Yes, the SEC has kicked can on bitcoin ETF approval BUT that is for the physically-backed ones under '33 Act. The futures ETFs filed under the '40 Act (which Genz loves) are very much alive and likely on schedule (we think 75% chance approved in Oct).
Bitcoin jumped just under 10% on Friday to close just above $48k, its highest closing price since September 18.
Erik Mclean / Unsplash
Could a crypto futures ETF be on the cards?The head of the The Securities and Exchange Commission (SEC), Gary Gensler, showed support for exchange traded funds (ETFs) on futures of top cryptos, signing out Bitcoin futures, sending Bitcoin prices up 8.31% on Thursday. People have been begging for a Bitcoin ETF for a while now, but despite being a crypto boffin himself, Gensler and the SEC are still concerned that the crypto world may not have enough regulation for that to be a consideration.
In August however, Gensler came out in support for a Bitcoin Futures ETF, which would invest in futures contracts rather than the digital currency itself. Such funds would be registered under the Investments Company Act of 1940, which would provide “significant investor protections.” Gensler said:
I look forward to staff’s review of such filings
Bitcoin reached highs of $47,800 in Thursday trading.
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Crypto inflows are soaringCrypto had a tough week last week on the back of the Evergrande near-crisis and fresh crackdowns out of China, sending Bitcoin down 8.55% for the week. However, despite that, the cryptocurrency market has now seen inflows for the sixth week in a row. Inflows last week came in at $95 million, adding to the $6 billion the market has seen this year, and Bitcoin was leading the pack with $50.2 million in inflows.
While the overall market continues to see investments pouring in, Bitcoin has only seen inflows in four of the last 17 weeks compared to altcoins like Solana (SOLUSD), which have taken the market by storm. Nevertheless, Bitcoin inflows have already reached around $4.3 billion so far this year, and it looks like the OG digital currency is still top dog despite the negative attention that has surrounded the coin recently.
Bitcoin is currently trading just above the $40k mark and closed Monday at $42,189.81.
China cracks down again… and this time it’s seriousBitcoin took a hit on Friday, along with the rest of the crypto market, after China’s most powerful regulators came down hard (again) on digital assets with a blanket ban on all crypto mining and transactions. Ten agencies all got together and basically said that anything to do with crypto is now illegal, and the country is planning on clamping down hard on any illicit activity. It’s the first time that so many organizations have banded together to fully root out digital assets. In May, China banned financial organizations from providing any services related to crypto, and it’s been coming after digital currencies since 2013 – but this is the most all-encompassing prohibition so far. Winston Ma, a NYU Law School adjunct professor, said:
In the history of crypto market regulation in China, this is the most direct, most comprehensive regulatory framework involving the largest number of ministries.
The market plummeted, with Bitcoin ending Friday down nearly 5% and continuing its losses into the weekend, Ethereum (ETHUSD) and Dogecoin (DOGEUSD) sank around 7% each, and Ripple’s XRP (XRPUSD) lost nearly 6%. People are freaking out, and David Lesperance, a Toronto-based attorney who specializes in crypto tax, said:
Since the announcement less than two hours ago, I have already received over a dozen messages – email, phone and encrypted app – from Chinese crypto holders looking for solutions on how to access and protect their crypto holdings in foreign exchanges and cold wallets.
Unsplash / Brian Matangelo
Twitter tippers jump on the Bitcoin bandwagonTwitter’s crypto commitment to the next step finally takes the next step, and now people can officially tip influencers in Bitcoin on the platform.
Twitter recently rolled out its Tip Jar function – now with a crypto twist. The social media giant hinted at a crypto feature at the start of the month, and now Twitter has officially rolled out its Bitcoin (BTCUSD) tipping function. That’s not all though, and Twitter is also exploring the possibility of letting users authenticate their non-fungible tokens (NFT), which have soared in popularity recently. All of this is part of Twitter’s plan to find more ways for creators to make money on the platform. Esther Crawford, a product executive building Twitter, said:
There’s this growing interest among creators to use apps that run on the blockchain. We want to help creators participate in the promise of an evolving decentralized internet directly on Twitter.
Another step forward for crypto in its attempts to go mainstream. Twitter lifted 3.8% on the news.
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Bitcoin bounces on positive Fed newsThis week’s two-day Fed meeting comes to a close, and though there were no boat-rocking crypto decisions made, a paper will be released shortly on the possibility of the Fed launching its own digital currency. Major cryptos saw double digit jumps.
Wall Street has been waiting anxiously for any decisions to come out of this week’s two-day Federal Reserve meeting. The agency hasn’t rocked the boat this time, and announced no crypto-related decisions regarding stablecoins or regulation. However, the Fed has been looking at whether or not it will launch its own central based digital currency (CBDC) for over a year, and its Chairman Jermone Powell says a paper will be released soon on the issue. Powell said:
I think it’s important that we get to a place where we can make an informed decision about this and do so expeditiously. I don’t think we’re behind. I think it’s more important to do this right than to do it fast. We are working proactively to evaluate whether to issue a CBDC, and if so in what form.
Crypto spent the day in the green, with many making double digit gains as prices rebound from the Evergrande crisis. A combination of the Fed’s steady announcement and news that Evergrande will in fact make its next debt payment sent prices rallying – Ethereum (ETHUSD) ended the day up over 11%, Bitcoin (BTCUSD) lifted over 7%, Dogecoin (DOGEUSD) sprinted up nearly 12%, and XRP (XRPUSD) was up 15%.
Bitcoin faces an options expiryBitcoin sinks below the $40k mark for the first time since mid-August, worsened by anticipation over an upcoming options expiry.
The crypto market crumbled along with many of the worlds stocks this week on tensions over Evergrande (3333), and as the week draws on, investors are waiting anxiously to the $3.4 billion bitcoin options expiry that happens on Friday – and could ignite another period of volatility for the cryptocurrency. Sentiment seems to be positive so far, with more interest in “call” options than “puts”.
Regulatory pressure continues to rise too – SEC head Gary Gensler on Tuesday confirmed his plans to crack down on cryptos and make them register with the agency, and over the weekend U.S. regulators expanded its investigation into Binance, the biggest crypto exchange in the world, to include insider trading.
Crypto slumps as Evergrande crisis continuesBitcoin and the broader cryptomarket start the week in a slump after a possible loan default by property developer China Evergrande shakes the market – there are hints of recovery on the way though.
Wall Street started this week on the wrong side of the bed, seeing losses across the board as one of China’s biggest property developers Evergrande (3333) woke everyone up with a nasty jolt – the company is on the brink of collapse and will default without getting a helping hand.
Giant property conglomerate Evergrande (3333) has been on a rampage lately, picking up new holdings left right and center related to every industry under the sun. The company has over 800 developments going on around, but as it turns out, the company should have stuck to property. In what people are calling China’s Lehman Brothers moment, Evergrande (3333) is now in hundreds of billions worth of debt, way more than it can afford, and it may default. The money is owed to 171 domestic banks and 121 other financial firms, so it's pretty deeply entrenched in the Chinese financial system, meaning the effects of a default could ripple around the world. It’s probably going to take a government bailout to get things back on track.
Wall Street had a tumultuous day on Monday as everyone worried about whether Evergrande (3333) is about to ignite a global economic crisis in China, the second largest economy in the world – as you can imagine, the effects would be far reaching. The S&P (SPX) and the Nasdaq (NDX) had their worst days since May, and crypto crumbled. Bitcoin lost 9%, Ethereum (ETHUSD) and Dogecoin (DOGEUSD) both sank nearly 11%, and XRP (XRPUSD) ended the day down over 12%. Though there’s no direct link between crypto and Chinese property development, people are particularly risk averse when economic stability is in question. Edward Moya, senior market analyst of the Americas at Oanda, said:
The fallout from the Evergrande is putting a tremendous dent in risk appetite that is sending everything lower, so it should not surprise Wall Street (cryptos) are the first asset sold in the beginning of China-driven market selloff as investors aim to cash in.
However, sentiment is positive that recovery is on the way. Marko Kolanovic, chief global markets strategist at JPMorgan, said:
The market sell-off that escalated overnight we believe is primarily driven by technical selling flows (CTAs and option hedgers) in an environment of poor liquidity, and overreaction of discretionary traders to perceived risks.
Bitcoin sank to below $43k for the first time since August and closed at its lowest price since then at $43,036.
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Bitcoin goes goldenBitcoin has just formed a ‘golden cross’, which historically has meant big gains are on the way.
All eyes were on Bitcoin this week as its price chart trended towards a golden cross, which it finally formed on Thursday, giving us a hint at possible gains on the way. A golden cross occurs when the 50-day moving average price crosses over the 200-day moving average to the upside. Bitcoin formed a golden cross between Tuesday and Wednesday this week – a signal that in the past has led to big gains.
Bitcoin is still trading just below the $48k mark.
A new Asian crypto hub?There could be a new crypto capital on the horizon as Laos seeks to profit on the Chinese crackdown by authorizing both mining and trading.
The South-East Asian country of Laos is betting big on crypto after China shut down its mining operations, leaving space for a new Asian crypto hub. The government has just authorized six companies to begin mining and trading some of the biggest cryptos, including Bitcoin and Ethereum, in what could be just the beginning of Laos’ foray into digital assets. Best of all, the country is extremely hydro-power rich and currently exports about two thirds of its hydro electricity – making it the perfect home for the displaced power hungry crypto miners to settle. David Tuck, a Bangkok-based partner with Lyriant Advisory, said:
However you cut it, Laos has an abundance of power generation capacity and it doesn’t have much internal demand for that power. And one of the key requirements for crypto mining is massive amounts of power.
However, not everyone is excited about the new development, and South-East Asia specialist Zachary Abuza, a professor at the National War College in Washington, adds:
You should always be concerned when countries with poor regulatory records start to get involved in things like cryptocurrency. To say that the Laotian financial system is immature would be a brutal understatement, and we have to be concerned if they are rushing into this.
Bitcoin closed above the $48k mark on Wednesday for the first time since its El Salvador debut on September 7.
MicroStrategy bets big on BitcoinSoftware company MicroStrategy bolsters its Bitcoin investment, adding nearly a quarter of a billion dollars worth of the digital currency to make it the largest corporate crypto investor by a mile.
Bitcoin bull Michael Saylor's MicroStrategy has increased its holdings of the currency after paying $242.9 million in cash for another 5,050 coins. The data analytics firm is by far the biggest corporate investor in Bitcoin now with its BTC114,042 stash, and its total investment is now worth over $3.1 billion.
Not jealous at all.
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Standard Chartered backs Bitcoin balloonDespite a tumultuous Tuesday taking prices back down to below $47k, Standard Chartered still thinks Bitcoin could take to the skies, hitting the $100k mark by early next year.
The team over at Standard Chartered have been undeterred by Bitcoin’s bad week, predicting that the digital currency could soar 115% in the near future to hit $100,000 by 2022, and $175,000 not too long after that. If Bitcoin manages such a fantastic bull run, Standard Chartered also sees Ethereum (ETHUSD) jumping to highs of $35,000 in the long term. The team said:
As a medium of exchange, BTC may become the dominant peer-to-peer payment method for the global unbanked in a future cashless world.
Bitcoin just made a (slightly rocky) debut as legal currency in El Salvador, so we’re not quite there yet. But other countries are catching on. This week, Ukraine joined the long list of countries leaning towards crypto adoption, after its parliament voted overwhelmingly in favor of a new law legalizing and regulating cryptocurrency.
Overall though, it’s not been a great start to the week for Bitcoin, which ended Tuesday down 1.65% on the El Salvador debacle. Other tokens have also slowed: Ethereum (ETHUSD) lifted just under 2%, Dogecoin (DOGEUSD) lifted less than 1%, and XRP (XRPUSD) sank down nearly 3%. The only hold-on was Solana (SOLUSD), which has ignored the market crash and continued its parabolic gains by lifting nearly 50% this week already.
Image: Aaron Burden / Unsplash
Crypto cools downDespite the recent crypto comeback, the market cools off on Tuesday after Bitcoin’s debut as an official currency in El Salvador is mired by tech issues. Bitcoin tumbles 11% in Tuesday trading and continues the losses.
Bitcoin’s debut as official tender in El Salvador had the whole world waiting to see how things would work out. The answer? Not immediately well. The ambitious government created an app to store the digital currency, but it suffered a few technical glitches on the first day and had to be taken offline while server capacity was increased. The app came back online a few hours later, but the volatile crypto market had already stumbled at the first sign of trouble.
It wasn't just the government app that tripped up, with crypto exchanges like Coinbase buckling under the pressure too and experiencing trading freezes as the currency crashed. Bitcoin lost 18% at one point in the day to sink below $43k for the first time since the beginning of August, before closing down 11% at $46,866. Ethereum (ETHUSD), which has been flirting with $4,000 for days now, sank back down to just above $3,000 before closing the day down just under 13% at $3,429. Ripple’s XRP (XRPUSD) closed down nearly 19% after sinking 30% in intra-day trading, and joke currency Dogecoin (DOGEUSD) lost over 17% by the end of the day to close at its lowest price in about a month.
El Salvador President Nayib Bukele makes lemonade out of lemons though, stocking up on the country’s Bitcoin supplies with another 150 coins.
El Salvador makes historyBitcoin officially becomes legal tender in El Salvador on Tuesday, and the pioneering country buys around $20.9 million worth of the digital currency in preparation – just as Bitcoin retakes $52k.
El Salvador went down in history as the first country to make Bitcoin legal tender on Tuesday, and on Monday President Nayib Bukele announced in a series of tweets that the nation had just bought its first stash of the currency at a value of around $20.9 million:
El Salvador has just bought its first 200 coins. Our brokers will be buying a lot more as the deadline approaches. #BitcoinDay #BTC
The country is the first to first to officially have a digital asset on its balance sheets. The decision has been met with both criticism and excitement – while 70% of El Salvadorians disagree with the decision, fans of the unprecedented new laws have banded together across the world to convert $30 each of their own currency into Bitcoin to celebrate the occasion. The coordination is meant as more of a support gesture than a pump, but if all 3.3 million users on the subreddit play along, then who knows what could happen.
Bitcoin prices had a celebration all their own this week, closing Monday above $52,000 for the first time since May, though they swiftly sank back down 5% in Tuesday morning trading.
Bitcoin firmly retakes $51kBitcoin breaks past $51k on Friday and maintains its gains through the weekend, with analysts predicting $100,000 in the future.
Bitcoin has made some serious gains in the last few weeks, lifting over 70% since the crypto market started its comeback on July 21. On Friday, the OG digital currency sprinted back up past the $51k mark and managed to keep a relatively good grip on the milestone, ending the weekend at $51,809. Bloomberg Intelligence senior commodity strategist Mike McGlone has reaffirmed his $100k price prediction:
After enduring a gut-wrenching correction, we see the crypto market more likely to resume its upward trajectory than drop below the 2Q lows. (Bitcoin reaching $100k is) highly probable, especially after last year’s supply cut. Post-halving years have seen the greatest appreciation, and 4x in 2021 would be quite tame for the No. 1 crypto compared with 55x in 2013 and 15x in 2017.
El Salvador backs BitcoinEl Salvador is taking its Bitcoin ambitions seriously, with its Legislative Assembly having just approved a $150 million Bitcoin Trust. The country became the first in the world to adopt Bitcoin as legal tender in June, and the new law will take effect on September 7.
On the back of this promising pledge, Bitcoin prices surged in Thursday early morning trading and surged past $50,000 after the token spent the last 10 days or so retesting the $47,000 support. Also boosting the surge could be Ethereum's (ETHUSD) latest run-up following its London hard fork – market analyst Michaël van de Poppe recently predicted that Ethereum’s (ETHUSD) break above $3,500 could lead to a Bitcoin bull run, and Ethereum popped over $3,800 early on Thursday too.
Altcoins take center stageAfter a brief bull run, Bitcoin is consolidating as altcoins soak up all the attention.
Bitcoin had a brief bull run back up to break past the $50k mark on August 23, but since has been trading sideways just above the 200-day moving average of around $46,000. A current surge in the altcoin market has taken attention away from the OG digital currency, reflecting an appetite of risk from investors.
Bitcoin gets busyAfter popping past $50k for the first time since May, Bitcoin set a new record – more than $188 billion worth of Bitcoin was transferred through the network on Tuesday. Despite the milestone, prices are back down below $46k in Friday morning trading.
Bitcoin had a few hours in the sun on Monday, reclaiming the $50k mark for the first time since May. The moment didn't last long, and since then the cryptocurrency has slipped back down below $48k, but on Tuesday Bitcoin saw a new record amount of crypto transferred through its network. Over $188 billion in Bitcoin was transferred in a buying frenzy according to Glassnode – over two thirds more than the amount transferred in its April surge which took prices up to its highest price ever at $64,895.22. The flurry of activity came on the same day that software company MicroStrategy (MSTR) announced another $177 million investment into the crypto currency, taking its total stake to around $3 billion and making it Bitcoin’s largest institutional investor. Alexandra Clark, a sales trader at the UK based digital asset broker GlobalBlock, is bullish on the stock:
A report from Glassnode shows that the proportion of old bitcoins being spent on the network has once again increased as long-term holders take advantage of the currently high prices to realise profits. Whilst uncertainty remains for bitcoin in the short-term, its long-term future is clear, with professionals and academics stating that bitcoin, and digital assets more generally, will replace fiat currencies over the next five to 10 years.
Speaking of the short term, the sentiment seems to be that a deeper pullback is on the way. After Bitcoin lifted past $50k, prices have sunk back down to around $46k along with a decline in the broader crypto market, which has sunk back below $2 trillion.
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Coinbase gets slammedIt was a tumultuous Tuesday for crypto trader Coinbase, which got slammed in the headlines for bad customer service after customers’ accounts were hacked.
Coinbase is in the headlines for all the wrong reasons on Tuesday, with accusations of terrible customer service flying around following thousands of complaints regarding a recent hacking disaster. The recently public crypto brokerage was on the receiving end of a slating CNBC article, which exposed a history of account takeovers and hacks that have drained thousands from retail investors and not been addressed. In the last five years, there have been over 11,000 complaints against Coinbase, almost all relating to customer service, and many the result of account hacking incidents that have yet to see funds returned.
The hacks have impacted thousands of Americans, and the article comes just after Coinbase execs slammed Biden’s infrastructure bill, saying it’s going to negatively impact thousands of Americans. Awkward. Lawrence Zlatkin, global VP of tax at Coinbase, spoke out against the hasty decision on the bill’s crypto provisions:
Today, around 60 million Americans own crypto — roughly one-fifth of the entire U.S. population. Those Americans, and the entire crypto ecosystem, deserve more dialogue than midnight provisions inserted at the last minute.
Bitcoin mining is climbingU.S.-based cryptocurrency mining company Riot Blockchain has seen an increase of over 1,500% in quarterly revenue from its Bitcoin mining segment.
China has been coming down hard on the crypto market recently, adding to its long and complicated history with digital tokens and playing a major role in the recent crypto crash that just seems to keep on going. But when one door closes another opens and companies like Riot Blockchain, based in the U.S., have seen the silver lining in China’s crackdown. Riot’s June Bitcoin production numbers were up fivefold, and it’s starting to reflect in the crypto mining company’s top and bottom lines. Riot’s Q2 earnings boasted a 1,540% increase in quarterly revenue from Bitcoin mining, generating 675 Bitcoin compared to the 491 it mined in the first quarter. In April, the mining company acquired Whinstone U.S., the largest Bitcoin mining facility in Texas, which boosted the numbers.
The crypto market is certainly on its way back to the top after the prolonged crypto crash, recently re-claiming its $2 trillin market cap. Bitcoin managed to push past the $50k mark early on Monday morning, but hasn’t maintained those gains – prices closed Monday at $49,561.
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Bitcoin re-claims $50kBitcoin is back baby, reclaiming the $50k mark in the early hours of Monday morning trading for the first time in over three months.
Bitcoin’s week is off to a good start, seeing prices finally break past the $50k mark after months battling the crypto crash. The market turned a corner on July 21, with Bitcoin soaring under 70% since then, tackling milestones along with other top crypto currencies like Cardano and Solana. Metrics suggest that a supply squeeze could be on the way, with long term retail and institutional investors having topped up their stash while prices were slashed. The digital currency had been trading quite determinedly between $45k and $48k for a while now, and analysts think that pushing past $50,000 will take the coin on a bull run. The HODLers can only hope.
In other positive news for the crypto world – PayPal has officially launched its cryptocurrency service, and from this week British customers will be able to buy, hold, and sell digital currencies on the payments platform. PayPal’s crypto offering launched in the U.S. last year and has been so well it decided to go global.
Bitcoin hit highs of $50,562.11 on Monday morning
Is this just the beginning of the Bitcoin bounce?Bitcoin and Ethereum jumped along with the broader crypto market on Thursday, fuelled by a prediction that Bitcoin will hit $100,000 as soon as next year.
The broader crypto market spent the day in positive territory, lifting both Bitcoin and Ethereum (ETHUSD) up around 5% and seeing Cardano (ADAUSD) (which is now the third biggest crypto) jump a further 15% to build on the week’s already impressive gains. Bitcoin prices are still just off the highly-anticipated $50k break through point, and Ethereum (ETHUSD) closed back up above the $3k mark after a brief dip, but famous investment strategist Lyn Alden predicts there are better things to come – the founder of Lyn Alden Investment Strategy sees Bitcoin hitting $100,000 and Etheruem popping above $5,000 as soon as next year. Other strategists like ARK Invest’s Cathie Woods have implied that Bitcoin could reach the $500,000 level if it gets as big as the U.S. monetary base. Lyn Alden said about the volatility of the coin:
I think we're still in kind of the early-to-mid stage of its long-term trajectory. So that remains, I think, the best risk-reward as kind of a set-it-and-forget-it allocation. The price is very sentiment-driven, headline-driven, regulation-driven. There's all sorts of things that could prevent that from happening, but I think that the overall trajectory and buying power that we're seeing is more likely than not to push it to that level in that year.
Crypto adoption explodes amongst retail investorsThis year has seen the crypto market go on a wild ride, and retail investors are starting to really pay attention – global crypto adoption is up almost 900% amongst retail investors.
The last year has seen the crypto market hit some high highs and some low lows, living up to its volatile reputation, but that hasn’t stopped retail investors all over the world hopping onto the bandwagon hoping to make the big bucks. According to crypto-analysis firm Chainanalysis, global crypto adoption among retail investors has soared by 881% in the last year: led by India, Pakistan and Ukraine, where crypto has apparently been a lifeline to preserve savings amid a decline in real world currency values. The report said:
In emerging markets, many turn to cryptocurrency to preserve their savings in the face of currency devaluation, send and receive remittances, and carry out business transactions, while adoption in North America, Western Europe, and Eastern Asia over the last year has been powered largely by institutional investment.
As of Tuesday’s closing price, Bitcoin was up 288% on the year.
Could Bitcoin replace gold (asks yet another pundit)Despite regulators' very best efforts to reign in the burgeoning Bitcoin market, popular economist Mike McGlone sees the digital currency replacing gold.
Bitcoin has boomed in popularity and according to Mike McGlone of Bloomberg Intelligence, its growth is superior to that of gold and the currency could soon replace the yellow metal. It’s not a new call, but McGlone is the latest heavy hitter to throw his weight behind the prediction.
Despite regulators across the globe cracking down on the world of crypto, the market has seen huge growth this year and recently reclaimed its $2 trillion price tag, boosted by Bitcoin’s pop past $48k on Saturday. McGlone credits the “digitization of money and finance” for the market boom: the same factors that influenced the U.S. dollar gain dominance.
After hitting the $48k mark on Saturday, prices have gone back to their narrow $45-48k corridor – analysts think that if the coin can break past that $48k mark, then the next level could be as high at $56,000. Cointelegraph contributor Michaël van de Poppe said:
If we clearly breakthrough there, that is probably going to trigger a big short squeeze, as everybody’s looking for a short in this area. It reminds me of the $6,000 zone that we had with Bitcoin. If Bitcoin is going to break through this level, I think we’re going to have a squeeze all the way up to $55,000–$56,000, the next level that we have here.
Where is the next Bitcoin barrier?After an exciting recovery, Bitcoin has been jumping about in the $45-48k range for a few days now, and some analysts think a $46,000 daily close is the next big hurdle for the digital currency. Do you agree?
After months struggling with a crypto market crash, Bitcoin has finally turned it around and headed back into positive territory on July 21. The token broke $48k on August 14, but has been struggling to break free of that obstacle since then, swinging between $45k and $48k. Part of that could be thanks to an increase in miners on the network – after China’s mass crackdown on mining operations, Bitcoin’s hash rate took a hit as miners took their business elsewhere, but Glassnode notes that miner accumulation is back up.
We have seen the net balance position of miners continue to increase over the last two months. The net growth of miner balances has now hit +5k BTC/month which demonstrates a net reduction in compulsory sell-side pressure sourced from miners,
Crypto analyst Rekt Capital sees $46,500 daily close as the next big hurdle for the currency to continue its upwards trend. What do you think, is $46,500 enough to feed the bulls?
Bitcoin bounces backThe crypto market reclaims $2 trillion for the first time since May on Saturday as Bitcoin rattles past $48k.
Bitcoin is officially bouncing back, having seen a turn in sentiment on July 21 following months in the doldrums. After reaching a low of $29.296 on July 20, Bitcoin has been on a bull run, now trading up more than 125%, topping $48,000 on Saturday to reach its highest level since mid-May. The token reached a peak of $48,190 on Saturday morning, building on Friday’s gains of just under 8%. The bounceback helped to boost the overall crypto market, which has seen gains all over – Ethereum (ETHUSD) and Dogecoin (DOGEUSD) both ended Friday up around 9%, XRP lifted 13%, and Cardano (ADAUSDT) built on an impressive week with a jump of just under 17%.
The rally pushed up the value of the overall crypto market, which re-took its $2 trillion price tag.
Bitcoin breaks $46k despite political setbacksDespite a series of political setbacks that could change the future for crypto fans in the U.S., Bitcoin continues its rally to regain its $46k price tag on Monday, up 55% since its July 20 low.
Bitcoin is back on top, proving to HODLers everywhere that loyalty pays off. After reaching lows of $29,296 on July 20, Bitcoin embarked on a reassuringly impressive rally: reclaiming the $46k benchmark on Monday morning for the first time since May 17. The bull run comes despite a series of complications emerging out of Washington, primarily in the form of a $1.2 billion infrastructure bill that could threaten the future of crypto. The new bill would place unprecedented tax regulations on the crypto industry, demanding that crypto firms and brokers must report all transactions over $10,000 to the IRS to help fund other aspects of the U.S. infrastructure plan. The debate is still raging over how to define a “broker”, with a last minute amendment submitted to the Senate on Monday requesting that the new law only apply to traditional brokers, or businesses that actually conduct transactions on exchanges.
We're all working trying to resolve these issues. I continue to feel very strongly I want to crack down on tax cheats and people associated with these centralized programs, crypto exchanges.. I just don't want to destroy the innovation that comes from a decentralized network.
said Senator Ron Wyden of Oregon, who was part of the bipartisan team that proposed the amendment.
Unfortunately, the Senate on Monday shot down the attempt, breaking the hearts of crypto firms everywhere, who will now be forced to report their crypto transactions to the taxman. Minus the hoped-for amendment, the bill is likely to apply to all crypto players: ranging from miners to network validators, even those who are at no point responsible for consumer assets. It’s estimated that the nex taxation rules could bring in $28 billion in fiscal revenue in the next 10 years.
Developers are the lifeblood of innovation, and subjecting them to tax reporting would have far-reaching implications on privacy, and on the evolution of technology in this country—not to mention, most developers would not have access to useful data (for the IRS). This amendment has started the debate on many difficult questions related to financial technology that the Senate must address over the next few years,
warned Senator Cynthia Lummis.
Despite the harsh rejection, Bitcoin has maintained its gains, trading above $46k on Wednesday morning.
Bitcoin bounces back as Germany opens the gatesThe crypto market is making a comeback, with BTC prices popping to nearly $43k on Sunday, as Germany makes moves towards greater crypto adoption – allowing institutional funds to hold up to 20% in crypto assets for the first time.
After a crippling bear run, the crypto market looks like it’s finally on its way to recovery. Bitcoin is at its highest level since the decline started in mid-May, and the combined crypto market has soared $250 billion in value over the last week to near $1.7 trillion. Despite the recent crash, crypto adoption is on the rise across the world, and a new law in Germany could be partly to thank for recent recovery.
Germany has been heading towards mainstream crypto adoption for a while now, and the new law changes how ‘Spezialfonds’ (only accessible to institutional investors like insurers and pension funds) are governed. Starting on Monday, Germany will let certain institutional vehicles hold up to 20% of their assets in crypto, setting the stage for other funds to follow suit. Spezialfonds manage around €1.8 trillion worth of assets, but there’s no guarantee on how much of that the funds themselves will be willing to invest.
Most funds will initially stay well below the 20% mark. On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.
said Tim Kreutzmann, an expert on crypto assets at Germany’s fund industry body, BVI.
It won’t be surprising to see Bitcoin expand the $30,000 to $42,000 trading range on the upside and attempt $45,000. However, breaking above $50,000 will take some doing for Bitcoin. Only a conclusive break above $50,000 would attract fresh flows and signal a change in the broader direction for the market,
said Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange.
Germany may be a fan of crypto, but it’s not on the same page when it comes to crypto exchange Binance, and it's not the only one – Malaysia’s securities commission on Friday ordered the platform to halt all operations, joining the list of growing countries with restrictions on the exchange. Binance has been hit with multiple warnings recently from multiple major regions around the world, including Japan, the U.S., and Hong Kong. Separately, the crypto exchange will be winding down its futures and derivatives offerings in Germany, Italy, and the Netherlands as of Friday. Some of the contention seems to be about Binance’s lack of formal structure, so CEO Changpeng Zhao will look more into the ideas of creating a headquarters to bring down the pitchforks.
Ethereum also spiked on Sunday, reaching its highest price since early June at $2,699.
Could the bear run finally be over?Bitcoin and the wider crypto market could be on the way to a comeback, with the coin lifting past $40,000 for the first time in over a month on Monday morning to close the day up 5.26%, pushed along by rumors that Amazon may soon start accepting Bitcoin as payment.
After a bear run of note, Bitcoin has been quietly building itself back up the last few days, surging past $40,000 yesterday for the first time since June 17. The rally comes not long after Bitcoin closed below $30,000 for the first time since December as Delta variant fears extended the crypto crash. Since then though, sentiment has turned bullish and the digital currency has pulled itself back up by the bootstraps to flirt with the $40k mark after six consecutive days of trading in the green.
Bitcoin was up just under 10% in Monday morning trading, having gotten a boost from rumors that Amazon will soon start accepting Bitcoin as a form of payment. The speculation began after the e-commerce giant began the search for a digital currency expert to join its team, and later an anonymous source confirmed that Amazon would soon accept the digital currency. The move would be a big step for crypto’s journey into wider acceptance.
If Amazon were to move into Bitcoin it would be the most significant adoption to date. These rumors do tend to catch the market's hopefulness but often there is no smoke without fire and If I was Amazon I would be looking at accepting digital currencies. Naturally, the biggest hurdle for Amazon will be KYC & AML, as well as FX gains/losses.
said Charles Hayter, the chief executive and founder of CryptoCompare.
It’s not just Bitcoin that has been on a joy ride – Ethereum (ETHUSD) popped to its highest price since mid-June to reach $2,393.21 on Monday morning and Dogecoin (DOGEUSD) rose 11% in the early hours of trading, before closing the day up almost 3%. Both tokens have spent nearly a week in the green.
Delta variant feeds crypto crash fearsBitcoin sinks below $30,000 for the first time in nearly a month, dragging the rest of the large-cap cryptos with it and wiping off nearly $100 billion off the crypto market in 24 hours.
The crypto crash is extending its reign of terror, back with a vengeance this week and taking out $98 billion of the cryptocurrency market. Bitcoin saw its lowest closing price since late January on Monday, and in the early hours of Tuesday morning prices fell below $30,000 for the first time since June 22. It wasn’t alone in its losses - Ethereum (ETHUSD) was down over 5% in the first few hours of Tuesday morning, and Doge (DOGEUSD) and XRP (XRPUSD) both lost 8%. According to data from CoinMarketCap, around $98 billion has been wiped off the market in just 24 hours.
Part of the decline could be a reaction to growing fears about the Delta COVID variant, which has been spreading like wildfire and is feeding fears about economic recovery. The rest of the market took a hit too as investors got spooked – the Dow had its worst day since October last year and fell 2.1% on Monday, the Nasdaq was down 1.1% and the S&P 500 lost 1.6%.
Bitcoin is the ultimate risky asset right now and it could see intense selling pressure if Wall Street enters into panic selling mode,
wrote senior market analyst for the Americas at Oanda, Edward Moya.
Binance scraps stock tokens as crypto crashesBinance is rated as one of the biggest crypto exchanges in the world, and it’s scrapping its recent stock token product as the global crackdown worsens.
As Bitcoin hovers around its worst point since January and the rest of the crypto market follows suit - large cap cryptos like Ethereum and Cardano also posted big losses last week - crypto exchange Binance is playing into regulatory fears and pulling the plug on stock tokens. After introducing the product only a few months ago, Binance will no longer be offering digital versions of stocks like Tesla (TSLA), Coinbase (COIN), and Apple (AAPL) as it faces increasing regulatory scrutiny from around the world. Back in April, the exchange launched tradeable stock tokens on popular stocks that aimed to make it possible for a wider pool of the public to benefit from capital returns on equities without having to buy a full, traditional share. So instead of spending $700 on a full share of Tesla (TSLA), for example, you could buy a one-hundredth of a share in the form of a token, and pocket those smaller gains.
But the regulatory watchdogs are circling, and Binance is withdrawing all support for the stock tokens. Soon after the product launched, financial regulators in Germany warned that Binance had potentially violated rules with the new offering and faced possible fines. A string of countries followed including Canada, Japan, and Italy, and Britain's FCA has recently banned Binance. The regulators have spoken, and Binance is listening.
We believe that shifting our commercial focus to other product offerings will better serve our users, and we are committed to making this transition as straightforward as possible for those affected.
Binance said in a statement.
SEC turns its attention to BTC regulationBitcoin prices have been suspiciously quiet lately, but still haven’t managed to escape the regulatory glare. The SEC’s Gary Gensler tells lawmakers that investor protection rules should apply to crypto exchanges too.
Good old Gary has had it in for crypto since he took over as SEC Chairman in April of this year. Having previously taught classes on blockchain and other financial technology, there was hope that he might be a bit more understanding of the importance of decentralized finance and give crypto a little boost, but alas, he has made it clear since he took his place as chair that he thinks more investor protections are needed for Bitcoin and other crypto assets, and greater regulation.
It’s a digital, scarce store of value, but highly volatile. And there’s investors that want to trade that, and trade that for its volatility, in some cases just because it is lower correlation with other markets. I think that we need greater investor protection there,
Gensler said in May, talking about Bitcoin specifically.
His stance could be part of the reason that the SEC has been dragging its feet when it comes to approving a Bitcoin ETF – which would be massive for crypto adoption. A BTC ETF would mean that retail investors could invest in crypto without actually having to purchase it directly, removing the issue of complex custody arrangements. There have been multiple applications to the SEC for a Bitcoin ETF in the past few years, and the regulator has just delayed its decision yet again on the most recent one.
Bitcoin prices have been unusually quiet recently, as have other leading cryptos like Ethereum (ETHUSD) and Doge (DOGEUSD), which suggests some kind of craziness is almost certainly on the way. It’s like kids. When they go quiet, that’s when you need to worry…
Binance ban sinks BTCIt’s been a rough week for crypto bulls – Bitcoin sinks below $30k over the weekend while the UK’s FCA cracks down hard with a blanket ban on Binance, the world’s biggest crypto exchange.
Crypto continued its crash over the weekend, with Bitcoin losing almost all of this year's gains to fall below $30k. The global crypto market was down 7.4% as a whole on Friday, with Bitcoin, Ethereum, and Binance Smart Coin all taking hits of over 8%.
Bitcoin managed to regain some of its losses on Sunday, but it didn't last long, and the UK’s financial watchdog sent things spiralling back down again by banning Binance, the world's biggest crypto exchange by trading volumes, because of anti-money laundering concerns. The platform, which already offered Brits the chance to trade, had planned on opening its own digital asset marketplace in the UK, but it was one of several firms that withdrew their applications to register because they didn't meet the country’s AML requirements. In fact, Binance ran into trouble in Canada this weekend too, signalling its regulatory issues aren’t anywhere near over.
In other news, Elon Musk (surprise, surprise) and Twitter’s Jack Dorsey have set up a Bitcoin debate date through a bizarre Twitter exchange. The two tech tycoons got into it when Musk replied to Dorsey’s post promoting an event called “The B Word” on July 21 that hopes to encourage companies to adapt Bitcoin. They agreed to have a talk for the “bicurious/bitcurious” and the Twitterverse went kinda crazy shipping on an Elon/Jack romance.
China causes crypto crashBitcoin plummets to its lowest price since January as China intensifies its crypto mining crackdown and bans most mining operations.
After a year of record highs and parabolic gains, crypto markets are going through a turbulent time that just doesn't look to be ending any time soon. Bitcoin plunged 11% on Monday to below $32,000, its lowest closing price since January of this year... and it hasn't stopped there, crashing down through the $30k barrier today to flail around $29,000.
It all adds to a sell-off that started with Tesla’s disavowal of the currency on May 12, which pushed BTC way down from its $56k price prior to the announcement. The wider market has been hit just as hard, with Ethereum losing around half its value in that time, and Doge spending most of the month in the red. The most recent crackdown came from China, which this week crashed the market by closing around 90% of crypto mining in the country.
Over the weekend over 25 mines in the Sichuan province were shut down, including some of the biggest in the world. Authorities ordered a halt to all crypto mining, and around 90% of China’s mining capacity ground to a halt. As China accounts for about 65% of the world’s mining operations, it’s not good news.
As the cherry on top, the central bank on Monday urged some of China’s biggest banks and payment firms, including Jack Ma’s Alibaba and China Construction Bank, to crack down harder and ban all things to do with crypto trading. The brutal squashing has wiped $400 billion in value from the crypto market since Friday. Yikes.
China often does this. When China sneezes, Bitcoin catches a cold. But this flexing of regulatory muscle is often just that — in the past eight years, this story has risen its head at least three times
scoffed Charles Hayter, CEO of crypto data firm CryptoCompare.
But not everyone is so confident. Analysts warn that more pain could be on the way, as Bitcoin charts show the price 50-day moving average falling below the 200-day moving average – a pattern known as the "death cross" that usually indicates further damage is on the way. However, the last time this pattern occurred was March 2020, after which Bitcoin surged to record highs – so to be fair, anything could happen.
As crippling as the crackdown has been there are some players set to benefit from the move. It might be worth taking a look at U.S.-based mining companies like Marathon Digital (MARA) and Riot Blockchain (RIOT), who could see a major boost if miners have to move out of China.
Another blow to the ETF dreamCrypto traders get dealt a blow as the SEC once more delays its ruling on a Bitcoin ETF, sending prices down by almost 6% on Friday.
After gathering dust for a good while, the SEC finally picked back up the Bitcoin ETF application - only to whack it back down to decide it still needs another few months of deliberation. The first Bitcoin ETF application was filed eight years ago, followed by a long path of rejections and reapplications, and the SEC has rejected over a dozen Bitcoin ETF proposals over the years in the name of investor protection. There’s been a lot of optimism that 2021 could be the year that an application finally gets through all the hurdles – the latest contender is veteran New York-based investment manager VanEck, which manages assets worth over $25 billion, 75% of them in ETF vehicles. But hopes were dashed once again last week as the SEC delayed approving the VanEck Bitcoin ETF for the second time, by a further 45 days.
A Bitcoin ETF is like the white whale of the crypto industry, and despite being something of a crypto pro, the SEC’s new Chairman Gary Gensler is not making it an easy catch. The same filing that revealed the decision to delay also asked for public comment on the VanEck application, giving interested parties the chance to throw in their 2 cents on whether the regulatory landscape is ready for something of that scale, and asking how easy a Bitcoin ETF would be to manipulate.
While Bitcoin ETFs do exist in the U.S. they don't directly own any Bitcoin, but rather trade portfolios of stocks that look to have good exposure to blockchain tech – and both fund managers and investors want more.
In rejecting numerous bitcoin ETF applications, the SEC has continually stated concerns over fraud and manipulation in the underlying bitcoin spot market. The SEC is worried they don’t have proper surveillance over crypto exchanges and, therefore, can’t ensure adequate investor protections are in place,
said Nathan Geraci, president of the ETF Store, in an interview with Coindesk.
Yet another Elon Tweet...Keyboard warrior Elon Musk changes his tune (again) and says that Tesla might start accepting the crypto currency again, sending prices bouncing by over 6% on Monday. Anyone else feeling like they've got whiplash?
After igniting a crypto crash a few weeks ago by breaking up with Bitcoin, Elon Musk and his EV baby are thinking of reuniting with the digital currency – but not without conditions. Bitcoin popped back up over the $40k mark briefly, closing the day up 6.13% after the tech magnate tweeted that Tesla could resume Bitcoin transactions if the currency could significantly decrease its energy consumption. The post was in response to an accusation that Elon has been using his power and influence to manipulate the market, calling it a pump and dump – and there are more than a few people out there who agree with that.
This is inaccurate. Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market. When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions
Musk clapped back.
It’s not all doom and gloom though, and Monday saw some bullish analyst coverage from Tudor Jones that nicely complemented Elon’s U-turn. Billionaire hedge fund manager Paul Tudor Jones is feeling optimistic about the digital currency, saying that it’s a great way to diversify a portfolio and protect his wealth in the long term, just like gold.
It’s the 2021 version of stuffing cash under your mattress, except there’s every chance an Elon tweet could whip away your riches with a tap of his finger. Stay woke kids.
El Salvador rides to the rescueBitcoin had a rough start to the weekend on the back of yet another Musk tweet, but in a surprise twist, El Salvador rides to the rescue, sending prices galloping up on the news that it could make the currency legal tender.
Bitcoin started off the weekend with a 6% drop on Friday thanks to Elon Musk and his terrifying Twitter powers, spending a couple more days in the red before rebounding on Monday. The bonkers billionaire posted a picture on Twitter of a couple breaking up, captioning it “Bitcoin” with a heartbreak emoji – followed two hours later by an “I miss you” tweet on the same thread. Who knows what the real meaning was.
Musk continues to be a riddle wrapped in a mystery, but investors certainly assumed a subtext, and sent prices down just under 6%. Prices have plummeted over 30% since Musk sent the digital currency into the doldrums by rencouncing Tesla’s support of the coin.
People are definitely starting to get a bit snippy over the impact the tech genius has over the crypto market – and how irresponsible he can be with it. Last week the legendary hacker group Anonymous set him in their sights, sending a protest threat complaining about his cavalier treatment of cryptocurrencies on social media.
It seems that the games you have played with the crypto markets have destroyed lives. (Your tweets show a) clear disregard for the average working person. You may think you are the smartest person in the room, but now you have met your match. We are Anonymous! We are legion. Expect us.
The plot thickens. But while Elon appears to be going through a very public breakup with Bitcoin, El Savador is ready to do the opposite, embracing the digital token in a surprise move that could dramatically shift the currents of the international crypto marketplace. At Bitcoin 2021, which saw thousands of enthusiasts descend on Miami over the weekend, El Salvador President Nayib Bukele announced that his country was currently in the process of officially adopting Bitcoin as legal tender.
It would be the first country in the world to do so, and would mark a major milestone in monetary policy history. It would also, crucially, mean no capital gains tax for Bitcoin in El Salvador, which could kick off a major move towards the country for Bitcoin bulls.
Anyone feel like a holiday?
Musk tweet sends BTC back upCrypto’s favorite market manipulator isn't done with Bitcoin just yet – Elon Musk sends the currency racing back up by almost 12% with a tweet saying he’s spoken with North American Bitcoin miners about addressing his sustainability concerns.
Bitcoin closed back in on the $40k mark on Monday after Musk tweeted that he’d had active talks with Bitcoin miners about the sustainability of the digital currency. Bitcoin opened at $34,375.35 but immediately spiked up to over $39k before closing the day at $38,839.86 and even crossing back over the $40,000 mark briefly on Tuesday before closing back at $38,397.72.
Not long after the tweet, Microstrategy CEO Michael Saylor reposted it and announced a council to promote sustainability.
Yesterday I was pleased to host a meeting between @elonmusk & the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide
Having previously been a massive supporter of Bitcoin, Musk did a U-turn earlier this month and turned his back on the currency because of environmental concerns. Looks like he could be looking to give Bitcoin a second chance – but can the currency withstand the uncertainty?
A drastic diveIn case you missed it, Bitcoin is still in freefall after ending the week down 25% on the back of global regulatory obstacles.
It’s been quite the fall from grace for the currency in the past couple of weeks, sinking from highs around the $6,000 mark not so long ago to close lower than $3,500 last week as the crypto currency felt the severity of outside forces. In fact, the crypto market as a whole lost around $1 trillion in the same period.
In the aftermath of Tesla basically disowning Bitcoin, regulatory obstacles in both China and the U.S. have come to kick the currency when it's down, driving last week's dive. China further stoked the FUD fires that it started last week with its institutional crackdown, with Vice Premier Liu He releasing a menacing pledge to further crack down on crypto trading behavior, spurring fears of a complete clampdown in China.
Back in the States, the U.S. Treasury announced that it would be taking steps to enforce stricter crypto currency compliance with the IRS as a part of a crackdown on tax evasion, and it now requires any transfer valued at over $10,000 to be reported to the IRS. Analysts have been expecting regulators from the SEC and the Treasury to take a more active role in crypto regulation, and as both the Dems and Republicans have made crypto regulation a top 2021 priority, it’s likely more bad news could be on the way.
Confirmation of Gary Gensler as SEC Chairman, and cryptocurrency volatility over the weekend following rumors of tighter regulation, highlight the regulatory risks facing this industry,
wrote strategic economist Paul Shea.
Pizza the action...Hey everyone, don’t forget that it’s everyone’s favorite holiday on May 22 – yep, you guessed it, it’s Bitcoin Pizza Day! This year, to celebrate the 11th anniversary of Laszlo’s legendary order, there’s a treat in store: Bitcoin bro Anthony “Pomp” Pompliano has launched his own pizza brand, Bitcoin Pizza, with the first taste available from Saturday.
Every year, Bitcoiners around the world get together (virtually) over a slice, wherever they may be, in honor of programmer Laszlo Hanyecz’s historic trade on May 22, 2009, when he transferred 10,000 Bitcoins to Jeremy Sturdivant on a Bitcoin forum in return for two Papa John’s pizzas. Yes, you read that correctly, he paid 10,000 Bitcoins for two pizzas. Just to put that in context, when Bitcoin was trading near $60,000 a few weeks ago, that stash of Bitcoin would have been worth around $600 million.That’s some pricey pizza.
The day has become tradition among the Bitcoin community, and this year Pomp announced plans to launch a new pizza brand specially dedicated to the holiday, in support of Bitcoin developers. Which you would think would mean you could buy the pizza in Bitcoin. But no, turns out the brand will sell the pizza for $$$ and support developers in other ways.
We’ll take 100% of the profits from this pilot and we’re donating it to the Human Rights Foundation Bitcoin Developers’ Fund. That’s right, when you buy Bitcoin pizza what happens is you’re actually funding Bitcoin development
said Pompliano. And it’s all in the name of decentralization, apparently.
Just as bitcoin is working to disrupt the incumbent banks, Bitcoin Pizza will be working to disrupt the incumbent corporate pizza chains. Bitcoiners can accomplish anything. Why not have our own national pizza chain? Now we do.
Have a happy Pizza Day everyone! And don't worry, if you can't quite afford $600 million, you only need 0.0014 Bitcoin to afford two pizzas this year. In dollars though, obv.
Bitcoin nosedives on China banThe crypto world’s most dramatic couple, China and Bitcoin, go through another bad patch as the country bans financial institutions from offering any crypto-related services. This one hits Bitcoin hard, sending prices down over 14%. Popcorn at the ready.
In China’s latest attempt to rein in its growing digital trading market, it has issued a warning shot to investors against speculative crypto trading and banned all financial institutions and payment companies from providing services related to cryptocurrency transactions. China has already banned all crypto exchanges and Coin Offerings, but hasn't yet stopped individuals from holding cryptocurrencies.
It didn’t have a great impact for investors. Bitcoin’s price, which started at around $60,000 in May, dropped to lows of around $30,000; and almost every other digital currency took a nosedive as well – Ethereum and Dogecoin both lost around 30%.
Recently, crypto currency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order,
On the other hand, not everyone is worried, and analyst sentiment still seems optimistic.
When it comes to Elon Musk's tweets or negative remarks from the People's Bank Of China, it is important to distinguish their true impact from their perceived impact. Realistically, it is not the first time Elon Musk's tweets have been erratic and, frankly, wrong; likewise, China has changed its stance on cryptocurrencies multiple times before. News like this can get a lot of traction and easily stir market sentiments but they often prove of little significance in the long term. The crypto markets are extremely emotionally driven and their participants are prone to overreacting to events they perceive as negative.
said Ulrik Lykke, executive director at crypto hedge fund ARK36.
Maybe China has cried wolf one too many times. Is it just FUD, or is a crash really coming? You decide.
Has Tesla sold all its BTC???With a little more meddling from Musk Bitcoin reaches its lowest point since February, when a one-word tweet makes people think Tesla has sold off all its Bitcoin.
The crypto pot is once again getting a good old stir from Elon Musk, after he implied in a Twitter exchange that Tesla may have sold all of its holdings in the world’s largest digital currency.
It seems one word is all it takes to send BTC prices plummeting, and they crashed from a high of over $50k to a low of under $44k within the day, losing 9% by close, and falling a further 4.30% on Monday.
It’s just the latest in a slew of online commentary that has been sending Bitcoin bananas – last week Elon Musk wiped off another $7,000 from the price when he announced that Tesla would no longer accept the currency as payment for its cars in light of the environmental impact of mining the stuff.
All this speculation over one tweet, and it then turned out that it was all for nothing. A few hours later (and a few thousand dollars down for Bitcoiners), Elon clarified that Tesla had not actually sold any Bitcoin. Yet.
TradingView launches all-new Satoshi indexTradingView launches the all-singing, all-dancing Satoshi All Time History Index (SATSUSD): a brand new way of measuring, charting (and buying) the smallest unit of Bitcoin.
We all know what a Bitcoin is, right? But do you know what a Satoshi is? Just in case you don’t, here’s a quick refresher.
Satoshis, or sats, are the smallest unit of Bitcoin (BTC), with 100 million satoshis making up one Bitcoin. Named after the legendary and mysterious founder of Bitcoin, Satoshi Nakamoto, they’re basically like cents are to the dollar - except for a lot smaller. Some people see sats as a useful way of addressing unit bias – where people prefer whole units over a fraction of a unit. As a full Bitcoin is now considered too pricey for many retail investors to acquire – so the thinking goes – people may've become less inclined to trade it. To buy one Bitcoin, you’d currently need to spend over $50,0000. By comparison, right now you can buy almost 2,000 sats for just $1. Basically, you just get a heck of a lot more bang for your buck.
(Oh, by the way, Sats are also used to measure transaction fees, which are usually recorded in satoshis per byte (sat/b). In case you didn’t know.)
There have been growing calls for exchanges and crypto platforms to start quoting prices in sats, in order to open up the currency to smaller investors. On May 8, billionaire and legendary Bitcoin bull Mike Novogratz added his voice to the mix. And hey, you know what? We listened.
The new index from TradingView lets anyone chart, follow, and analyze Satoshis with price data going back to 2010. To get started, just type SATSUSD into the search box. You can then chart and analyze price action, add Satoshis to your watchlist, publish ideas about SATUSD, use Satoshis in Pine script, and much more.
Come on in and join the party!
The Power of Musk - Elon abandons BitcoinCrypto gets crushed under the weight of a decision by Tesla to cease accepting payment in Bitcoin because of the environmental impact. Bitcoin spins down 13%. Yikes.
Elon Musk has caused a stir on the crypto scene yet again, tweeting that Tesla will suspend the purchasing of vehicles with Bitcoin, and stop selling any of the Bitcoin on its balance sheet, citing concerns over the growing use of fossil fuels in crypto mining.
"We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel. Cryptocurrency is a good idea... but this cannot come at great cost to the environment."
It’s a big u-turn from the pro-BTC stance Tesla (and Musk) has taken over the past year, and the reversal isn’t unlikely to go down well with Bitcoin traders. But (we hate to say it) Musk might have a point.
Obviously it’s way more technical than this but basically, Bitcoin is created through the use of super high-powered computers that compete against other machines to solve complex maths problems. The process is extremely energy intensive, and largely relies on electricity that is generated with fossil fuels like coal. As an example, bitcoin mining currently uses more energy than the entire country of Argentina (about 121.36 terawatt-hours per year.)
The decision comes less than two months after Tesla bought $1.5 billion worth of Bitcoin and started accepting the digital currency as payment for its cars – a move that sent Bitcoin prices soaring by almost 20%. It worked out well for Tesla too – the BTC purchase has already led to a "positive impact" of at least $100 million for Tesla, according to its latest earnings.
And Musk has long been a supporter of Bitcoin, and crypto in general, with his tweets renowned for their impact on market prices. When he changed his Twitter bio to #bitcoin in January, for example, the share price shot up 20% in a few hours. So why has he suddenly changed his tune?
"The environmental impact from mining bitcoins was one of the biggest risks for the entire crypto market,"
said Edward Moya, a senior market analyst at currency trading firm OANDA.
The carbon footprint of Bitcoin is certainly at odds with Elon Musk’s clean energy ethos (he is the CEO of the world’s most famous electric car company, after all), and as a massive supporter of renewables, he’s already come under fire for his support of cryptocurrencies.
But not everyone is convinced, with some suspicious analysts suggesting that this could just be a ploy by Tesla to appease activist investors – or even a cynical move to further manipulate prices.
"Environmental, Social and Corporate Governance (ESG) issues are now a major motivation for many investors. Tesla, being a clean energy-focused company, might want to work better in the environmental area of ESG,"
Julia Lee from Burman Invest said.
"But a cynic might suggest that this is just another move by Elon Musk to influence the cryptocurrency market, as he has done on so many other occasions.”
Tapping the new versionBitcoin version 0.21.1 arrives, which includes the settings for the taproot soft fork - one of Bitcoin’s biggest upgrades yet.
The taproot soft fork activation is the first phase for the full upgrade, which has been in the making for years and will make Bitcoin multi-signature transactions cheaper, easier to deploy, and more private. The privacy and scalability upgrade will be one of Bitcoin’s biggest upgrades ever, and we’re all super excited about it – but actually, it’s already passed a bunch of milestones that were just too small for the non-tech world to pay much attention.
Given the decentralized nature of Bitcoin, the network can’t be changed unilaterally – instead, it takes the coordination of the entire user base to make big changes to the code. Actually deploying the changes takes teamwork between all of the stakeholders – so it’s deciding HOW to deploy the upgrade that has taken months, rather than the specifics of the upgrade itself, which has been on the cards for aaaaages.
Bitcoin Core contributor Pieter Wuille is the brains behind the Taproot upgrade, and he’s finally ready to get some other eyes on the code. Bitcoin’s difficulty dropped by 12.6% on May 1, the network’s largest downward correction of the year and the biggest negative difficulty adjustment in almost a decade.
“Merging this is obviously conditional on getting community support for the proposal. It’s opened here to demonstrate the code changes that it would imply,”
Miners that want to adopt the upgrade can signal their support on the network. If 90% of the blocks mined during this difficulty period include the Taproot signal bit, then the upgrade will be “locked in'' for activation in November of this year.
Biden’s tax plans push down pricesBitcoin is down over 12% for the week as rumours swirl that President Joe Biden could double capital gains tax on the wealthy.
Bitcoin had its worst week in almost two months as anxiety hit about President Biden's upcoming tax hike announcement and sent crypto stocks crazy. Biden then announced on April 23 that he would be proposing to double the highest long-term capital gains rate from 20% to 39.6% for anyone who makes over $1 million in income. Over $200 billion was wiped off the cryptocurrency market in Friday’s trading after the proposal was announced, as investors worried that it might negatively impact investment into digital assets. There are a whole bunch of crypto whales out there sitting on seriously large quantities of unrealized gains, and those guys could face serious tax implications if the proposals go through, raising the possibility of a major sell-off in the market. Bitcoin slipped below $50,000 for the first time since early March, and because misery loves the company, Etherum dipped 3.5% and XRP slipped 6.7% as well.
Not all is lost though, because it turns out the hike would only affect 0.3% of households, even if the bill managed to pass through the Senate, which is by no means a guarantee.
A jump of joyBitcoin prices are going nuts in anticipation of Coinbase going public, shooting up 6.24% to a new high of over $63,000.
Coinbase is the largest crypto platform in the U.S., and currently has around 56 million verified users as the prominence of Bitcoin and other cryptocurrencies grows. Bitcoin eclipsed its previous record from March on the back of the IPO expectation – and it wasn't the only currency hopping around either. Ethereum is up 10% over two days and XRP is up almost 25%.
Coinbase’s debut "will mark the first official juncture between the traditional financial avenue and the alternative crypto path"
wrote a senior analyst at Swissquote, Ipek Ozkardeskaya.
As such, a successful addition to Nasdaq should act as endorsement of cryptocurrencies by traditional investors.
Bitcoin bumpBitcoin gets a nice little boost of 3.24% after Visa says that its payments network will allow the use of the cryptocurrency USD Coin, a stablecoin backed by the US dollar, to settle transactions.
The move bumped up the whole crypto universe, and Bitcoin won by association. It’s just the latest in a series of companies that are making space for cryptocurrencies, with Tesla announcing only last week that it will now accept payment for its new cars in Bitcoin. A bunch of major finance firms like BlackRock and Mastercard are also embracing the use of digital coins as blockchain tech is increasingly accepted across established financial systems.
We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers,
said the head of crypto at Visa.
Not everyone is so ready to make the currency official though. Blythe Masteres, a former JP Morgan exec now CEO at Motive Capital, still holds that
the token remains mainly a vehicle for speculation and is unlikely to displace alternative stores of value.
Bitcoins now buy TeslasElon Musk, in typical Musk style, announces over Twitter that after buying $1.5 billion worth of bitcoin last month, Tesla will now accept bitcoins as payment for its cars - integrating the crypto currency further into the financial system. Prices lift 1%.
Government cashing in its bitcoinThe U.S. government is reaching into its locker and getting rid of some of its takings, selling off Bitcoin worth $38,000.
It’s not clear where the loot came from, and $38,000 only actually amounts to 0.7501 of a Bitcoin, which is nothing compared to the 30,000 Bitcoins auctioned off by the U.S. Marshals Service after they were seized from the Silk Road back in 2014.
Morgan Stanley offers Bitcoin accessMorgan Stanley (MS) is the first big U.S. bank to offer its clients access to Bitcoin funds, putting it back on track to achieving its sixth consecutive month of positivity and lifting prices 3.54%.
The investment bank giant officially told its wealth managers to deliver access to Bitcoin funds, albeit limited to its wealthier clients and restricted to 2.5% of their total net worth. Still, this is a big move towards increased institutional money pumping into digital assets, and could contribute towards the wider acceptance of Bitcoin as an investment-grade asset class.
Cryptocurrencies are increasingly becoming an accepted part of the financial landscape, and more institutions are now moving towards adoption. Deutsche Bank (DB) got involved in the convo this year. In a note, it said that it believed that Bitcoin was here to stay, but so was the volatility. It would be kinda dumb to ignore a $1 trillion market cap, for sure, but low liquidity remains a big obstacle to bitcoin evolving into its own asset class from valuations alone.
Not everyone is feeling quite so cheery about the cryptocurrency, either. Bank of America (BAC) took a negative outlook in March, claiming the stock was not really an inflation hedge nor was it a great option for anyone worried about climate change. The bank also raised concerns over the asset’s vulnerability to sharp price swings because of its high ownership concentration, with 95% of Bitcoin owned by only 2.4% of accounts.
Confiscated Bitcoin auctionThe French government is getting rid of €28 million worth of their crypto loot at an auction house in France, most of which was confiscated in the cleanup of the GateHub hack in 2019.
The auction was the first of its kind in France, held on behalf of the French Agency for the Recovery and Management of Seized & Confiscated Assets, and was split into two sales. The first sale consisted of 437 lots of around 0.11 and 2 Bitcoins; and the second of 41 lots of between 5 and 20 Bitcoins.
Yves Benaim, the founder of 2B4CH Swiss think tank for currencies, noted that there was a reason the government chose this time to sell.
Technically the French ministry is allowed to sell something that has been seized if they think the value might go down,
It’s interesting that they are selling it now, betting that the price will go down, that it was just a bubble. Bitcoin are now worth about €50,000 each, it is interesting that they are starting the auction at 40% to 50% of the market price, so some people will be very interested in buying just to be able to sell straight away.
PayPal moves into BitcoinA new crypto-focused business unit is opening up at PayPal, which will expand the company’s crypto forays “beyond buy, sell, hold”. Prices sink just over 4%.
PayPal’s Ceo, Dan Schulman, revealed the company’s plans to delve further into the crypto-currency world in a bid to race head in the current financial technology era. The new business unit will include some transfers from the core tech team and will be guided by a board with an extensive list of experts in the tech, crypto, and regulation fields. The unit will experiment with smart contracts and testing Ethereum and other blockchains as ways to improve payments and other transactions.
We all know the current financial system is antiquated, and we can envision a future where transactions are completed in seconds, not days; a future where transactions should be less expensive to complete; and a future that enables all people to be part of the digital economy, not just the affluent. We are significantly investing in our new crypto, blockchain, and digital currencies business unit in order to help shape this more inclusive future
Cboe might list BitcoinThe Chicago Board Options Exchange (CBOE) reveals in an SEC filing that it is seeking approval to list and trade shares of what could be the first (and long-awaited) Bitcoin exchange-traded fund in the U.S.
Cboe asked for the green light on the VanEck Bitcoin trust - which applied in December to start an ETF tracking the largest cryptocurrency. This is at least the third time since 2018 that they’ve sought fund approval. So far, U.S. regulators have been hesitant to approve a Bitcoin ETF due to worries about a long list of things, including market volatility and industry manipulation. Since 2018 though, the crypto currency market has become increasingly robust as more and more people pile onto the trend.
This time around we’re much more optimistic than we have been in the past,
Cboe Global Head of Listings Laura Morrison said.
Bitcoin breaks $1 trillionAmid all the Tesla excitement, Bitcoin’s price bounces 9% - taking its market cap shooting past $1 trillion for the first time, climbing above $53,000.
Bitcoin breaks $50k!It's been a bumper year for Bitcoin, and today takes the cake as the price bounces through $50,000 for the first time ever. Looks like those Musk tweets are really doing the trick.
The price is already up almost 75% since the start of the year and the bull run shows no sign of slowing down as investors pile back into the currency. BTC hit a high of $50,602.53 on the Bitstamp exchange on February 16, and it just keeps rising: up to $51,721.15 the following day. Will it ever end?
Just FYI, if you'd bought $100 of Bitcoin back in 2010 when it was hovering around the 10 cent mark (so call it 1,000 Bitcoins), they'd be worth over $50 million today. Did you do it? Yeah, we didn't either. Doh!
Other cryptos are also doing great – Ethereum (ETHUSD) is up 38% on the dollar for the first half of February, while Ripple (XRPUSD) is also up 9%. Looks like Doge Coin is finally coming down from its Musk-induced high, but overall the crypto world is soaring this year, and Bitcoin is leading the charge.
“It’s the best-performing asset of the last decade for sure,” said Daniel Polotsky, CEO of CoinFlip.
Tesla taps in for a big-time bounceRemember that time when Musk tweeted #bitcoin and the price jumped? Well this time, he actually puts his money where his mouth is with a whopping great corporate investment, sending the stock through the roof.
On Monday January 8, Tesla announced in an SEC filing that it had invested $1.5 billion into Bitcoin (BTCUSD) as part of a new investment policy designed to give the company "more flexibility to diversify and maximize returns on cash that is not required to maintain adequate operating liquidity." In other words, they've got deep pockets and they want to have some fun.
Under the new policy, Tesla might also invest in other alternative reserve assets including digital assets, gold bullion, gold exchange-traded funds – but Bitcoin was its first power play, and boy did it have a major impact. Opening the day at $38,870, the price jumped over 10% in the first 30 minutes after the 12pm announcement, and by 1pm it was up 16% to over $44,000 and pushing close to the $45,000 ceiling. By Tuesday morning, it was up at over $48,000. Good news for Bitcoin bulls.
In yet another headline grab, Tesla also confirmed plans to accept bitcoin as a form of payment for its products in the near future (on a limited basis to start) which it told the SEC that it "may or may not liquidate upon receipt."
So basically, Tesla (and by extension, Musk) could very well end up as one of the world's biggest holders of Bitcoin. Or it could end up with some serious control over the Bitcoin price, if it decides to liquidate its receipts. Either way, the move is likely to have a pretty major impact on the crypto market – something that, given the fun Musk has been having recently with his cryptic crypto tweets, is probably a side effect that was very much intended.
A couple of days later, Mastercard (MA) jumped on the bandwagon too, allowing cardholders to transact in cryptocurrencies on its network. On March 17, Visa (V) tapped even deeper into Bitcoin with a new global partnership with cryptocurrency platform Crypto.com.
The Musk effectIn yet another example of the crazy influence Elon Musk can wield online, he adds the #bitcoin hashtag to his Twitter profile and the price goes through the roof, gaining almost 11% in a single day and continuing with a further 10% rise the following day.
Twitter CEO Jack Dorsey did the same, prompting numerous Tweets along the lines of..."what do these guys know that we don't?"
It wasn't just the #Bitcoin hashtag that hiked the price though. Elon also tweeted a meme of a dog on a magazine cover, apparently in support of the joke cryptocurrency Dogecoin, which sent that currency flying also. It's been a funny old week for Dogecoin, which soared by over 60% after a reddit subgroup called SatoshiStreetBets jumped on the bandwagon to try and bump up the price in the same way WallStreetBets had done for Gamestop (GME).
It didn't have anything directly to do with Bitcoin, but the currency still saw a knock-on effect of the bump in crypto values.
Regulators get the jittersIt's been one hell of a ride since Bitcoin topped $40,000 at the start of January, and the currency has fluctuated all over the place. It's lost a quarter of its value since then, dipping briefly below $30,000 on January 22 and again on January 27. And some people are getting the jitters.
FCA Chief Andrew Bailey, head of the UK's financial regulator, warned an online Davos panel on January 25 that "Bitcoin's days were numbered" and that although digital innovation in the payments sector was here to stay, he doubted that cryptocurrencies in their current form would continue to exist. "Have we landed on what I would call the design, governance and arrangements for a lasting digital currency? No, I don't think we're there yet," he said.
Other bears have also come out with warnings. Guggenheim CIO thinks that the institutional demand isn't "big enough or deep enough" to sustain prices above $30,000, while ex Goldman CEO Lloyd Blankfein predicted that regulators were likely to be looking very closely at Bitcoin this year, given its recent success.
Look closely they will – but that doesn't necessarily mean bad news. US Treasury secretary (and former Chair of the Federal Reserve) Janet Yellen offered up a fairly balanced view to the Senate Finance Committee this month, noting that cryptocurrencies have the potential to “improve the efficiency of the financial system,” and "we need to look closely at how to encourage their use for legitimate activities while curtailing their use for malign and illegal activities." She did, however, promise that she would "work closely with the Federal Reserve Board and the other federal banking and securities regulators" to implement an effective regulatory framework," so a stricter operating environment could very well be on the way...
Craig Wright causing chaosCraig Wright is back to cause more havoc, sending stock prices tumbling over 13% after he lays a copyright suit against both Bitcoin.org and Bitcoincore.org.
Bitcoin released a statement “Regarding CSW and the Bitcoin Whitepaper”, announcing that Bitcoin.org and Bitcoincore.org had both been served with allegations of copyright infringement by Wright’s lawyers, who said that Wright owned the copyright to the whitepaper, the Bitcoin name, and ownership of Bitcoin.org. Bitcoin.org, unsurprisingly, disagreed.
Unfortunately, before any of the big brass were consulted, a bunch of Bitcoin core developers scrambled to take down the white paper from Bitcoincore.org in response, which gave the claims some credence, sending prices down and making it look like the real Nakamoto had arrived.
By surrendering in this way, the Bitcoin Core project has lent ammunition to Bitcoin’s enemies, engaged in self-censorship, and compromised its integrity. This surrender will no doubt be weaponized to make new false claims, like that the Bitcoin Core developers “know” CSW to be Satoshi Nakamoto and this is why they acted in this way,
wrote a core developer in an announcement.
We believe there is no doubt we have the legal right to host the Bitcoin white paper. Furthermore, Satoshi Nakamoto has a known PGP public key, therefore it is cryptographically possible for someone to verify themselves to be Satoshi Nakamoto.
New releaseBitcoin Core 0.21.0 becomes available, the 21st major release of Satoshi Nakamoto’s original client software.
The update was the product of over 600 merged pull requests, and was one of the biggest Bitcoin Core upgrades in recent years, introducing various new features as well as privacy and performance improvements, while taking a big step towards the Schnorr/Taproot protocol upgrade.
Uh oh... down we go...Bitcoin begins a slide backwards. Cryptocurrencies as a whole have a bad week, with almost $200bn wiped off the market in a single day. Bitcoin loses around 17%, falling back down to a low of $30,261 on January 11 and closing at $35,455.58.
Part of the problem was that that regulators were running scared – in the UK, the Financial Conduct Authority (FCA) warned that people investing in cryptoassets “should be prepared to lose all their money” This went down, unsurprisingly, like a lead balloon in the market, and Bitcoin alone lost about $125bn in market value within 24 hours. It wasn’t the first time the FCA had taken a stand against crypto either - back in October 2020, it banned the sale of crypto-derivatives to retail consumers in the UK.
Not everyone is worried though. Upwards cycles usually go through corrections, and a 30% drop was only to be expected, said some observers, with a $30,000 price support even suggesting more potential upside for the future. Optimistic thinking – let’s hope it happens.
Breaking the $40k barrierWell, whaddya know. The bull run hasn’t stopped, and Bitcoin bowls into a record-breaking new year by smashing through the $30,000 barrier on January 2 and breaking $40,000 just five days later, before hitting a high of $42,000 on January 8. That’s a 40% gain in the first week of the year.
It’s looking good, and the banks are behind the bulls – on January 5, JP Morgan suggested that Bitcoin could realistically reach $146,000 if it started to replace gold in investor portfolios.
But be wary. Not everyone is on board, and there are inevitable fears that the bottom could fall out of the market. Michael Hartnett, Chief Investment Strategist at Bank of America Securities, called it the “mother of all bubbles” and compared it to the dot.com boom of the late 90s.
NYU professor of economics Nouriel Roubini was also skeptical. “The price of Bitcoin is totally manipulated by a bunch of people, by a bunch of whales,” he said. “It doesn’t have any fundamental value. We’re close to the point where the hyperbolic bubble is going to go bust.” But then, his nickname is Dr. Doom, so you'd expect him to be pessimistic...
Happy New Year!The year ends on a whopping great high, with Bitcoin nudging $30,000 (hitting a peak of $29,300 on December 31 and closing the year at $28,992).
It’s pretty close to what legendary Bitcoin Pundit PlanB predicted all along (though slightly short of the $31,000 he thought it might reach by December 2020). However, it showed that the Stock-to-Flow model he uses is scarily accurate a lot of the time. It treats Bitcoin like a traditional commodity such as gold, and compares its current supply volume with its rate of production – meaning that halvings are pretty important events, even if they can come across initially like an anticlimax.
And PlanB is even more optimistic about the future. On December 31 he predicted that between now and the next halving (expected in 2024) the average Bitcoin price would sit at $288,000. That’s one hell of a rise.
It’s finally happened!Crack open the champagne and break out the party hats, because Bitcoin has only gone and done it. Yes, on December 16 the cryptocurrency blows past the $20,000 barrier, barely stopping to say hello before charging on up to reach a record-breaking high of $21,576 – a yearly gain of over 180%. Double whoop.
It doesn’t stop there. The currency just keeps on climbing, passing $24,000 on December 21 and $26,000 on December 26. Jeff Dorman, Chief Investment Officer at digital asset investment giant Arca, summarized the situation pretty well, we think.
“Bitcoin has graduated from “digital assets playground” to “mainstream global investment”,” he told CoinDesk. “Investors now have the knowledge and means to buy bitcoin themselves, and we are seeing it in real time, which happened quicker than we anticipated.”
However, he warned against fund managers jumping too enthusiastically onto the bandwagon. “Very soon, investors will specifically seek out digital asset hedge fund strategies that don’t own any Bitcoin, as they want fund managers to give them exposure to assets that they can’t buy themselves, or don’t know exist. As a result, there is a good chance that actively managed hedge funds and passive indexes built around high allocations to Bitcoin have a very short shelf life.”
$20k here we comeIt looks like all the bulls were on the right track when they called $20,000 by the end of 2020. Bitcoin is very nearly there, edging up with a daily high of $19,864 on November 30 before closing the month at $19,700.
It doesn’t hurt that everyone is piling in to praise it to the skies. On November 20 Rick Rieder, chief investment officer of global fixed income at BlackRock, the world’s biggest money manager, said that Bitcoin was here to stay and could “replace gold.” And on November 30, Alliance Bernstein analyst Inigo Fraser-Jenkins had a change of heart, telling clients that Bitcoin had a role to play in asset allocation.
It’s still being touted as “digital gold” because of its role in hedging against inflation – but even as gold struggles, Bitcoin continues to rise.
Bitcoin up 100% on the yearOh, how the worm has turned. King Bitcoin hits a high of $15,770 in trading today, a gain of over 10% on yesterday’s close, raking in gains of over 100% since the start of the year and taking it to its highest level in three years.
Why? Traders seem to think it’s because the Federal Reserve just keeps printing money.
As the US election inches nearer and gets ever crazier, the markets are desperately trying to figure out and price in the possibilities. But either way, Bitcoin could be in for a win. "If there is social disorder because of a Trump win, the Fed prints. If the election result is a blue wave and taxes rise, the dollar falls because the Fed prints more, and more and more," Bill Noble, chief technical analyst at Token Metrics, a cryptocurrency research company, told CoinDesk.
King Bitcoin gains over 100% since the start of the year, taking it to its highest level in three years. Photo: William Krause / Unsplash
PayPal accepts Bitcoin, price hits record highBitcoin prices are staying steady at around $10,500-11,000: up about 50% on the year, but not setting the world on fire. And then suddenly, everything changes.
On October 21, PayPal launches a new service allowing its 346 million customers to buy, hold and sell cryptocurrency directly from their PayPal account, as well as using it as a funding source across its 26 million merchants. That’s a very big deal indeed, and Bitcoin jumps over 7% straight away to break $12,000 for the first time since August, hitting a record high for 2020 so far.
“It’s the sheer scale of PayPal’s reach that is attracting the headlines. This could well go down in history as a watershed moment, the point at which bitcoin goes properly mainstream,” said Jason Deane, an analyst for cryptocurrency analysis firm Quantum Economics.
PayPal marked a turning point in the market, and former skeptics pile on board to boost Bitcoin’s rep. On October 26, JP Morgan wrote that Bitcoin had “considerable price upside” – a pretty big U-turn from the days when CEO Jamie Dimon called the currency a “fraud.”
“Bitcoin is the future of Twitter” says Twitter CEO Jack DorseySpeaking at a conference in Norway, the Bitcoin bull (who has previously predicted that Bitcoin could be the world’s sole currency by 2030), says that Bitcoin pointed to a future where “content exists forever, where it’s permanent, where it doesn’t go away.”
“The whole spirit of Bitcoin... is to provide a trusted system in a distrusted environment, which is the internet,” he said. Meanwhile, the price still hovered around $11,000.
Twitter CEO Jack Dorsey says Bitcoin points to a future where “content exists forever, where it’s permanent, where it doesn’t go away.” Photo: Mark Warner / Wikimedia
Bitcoin reaches 88% capacityBitcoin miners have created more than 18.5 million BTC, totalling 88% of the 21 million limit. But it’s still going to take over a century to hit 100% due to the ongoing halvings, with full capacity expected in 2140.
By the way, as of September 2020 there were over 17,000 Bitcoin millionaires. If you’d bought 85 Bitcoins on August 31, 2015, you too could have had $1 million by August 31, 2020. But most of us were probably out sunbathing somewhere instead.
And it was all going so well….What happened? It was all going great, with the price staying steady between $11,000 and $12,000 for the whole of August, and then on September 3 boom, a crash drops the rate right back down to a low of $9,987.86, ending the day at $10,160. It wouldn’t clear $11,000 again for two weeks.
So what happened to wipe 10% off its value? According to Coindesk, a notable rise in deposits onto exchanges suggested that some investors could be trying to offload their Bitcoin all at once, which can depress prices.
In other news, nine members of the U.S. Congress wrote a letter urging Trump to use blockchain to help with Covid-19 relief; while over in Switzerland the entire canton of Zug decided to allow people to pay their taxes in Bitcoin.
Congressman is confidentU.S. Congressman Tom Emmer thinks that as we emerge from the catastrophe of COVID, Bitcoin will only get stronger. And it looks like he’s right. Bitcoin, among other “safe haven” assets, climbs steadily over the week.
It benefits from fears that Coronavirus stimulus measures could cause heavy inflation, With Bitcoin often used as a hedge against inflation, a lot more people are now looking to crypto. Winning.
U.S. Congressman Tom Emmer thinks that as we emerge from the catastrophe of COVID, Bitcoin will only get stronger. Photo: House Creative Services / Wikimedia
New versionA minor update, Bitcoin Core 0.20.1, becomes available with small bug fixes and improvements.
Bitcoin breaks through $10k. Again.Prices had been trading pretty horizontally around $9,000 for a while, but Bitcoin finally breaks out at the end of July with an exciting 11.08% price jump on July 27, taking it surging above $11,000.
Good news for US banksGood news - US banks can now hold Bitcoin on behalf of their clients, meaning that the traditional main street players can finally get in on the act. Has crypto made the mainstream?
The Office of the Comptroller of the Currency (OCC) confirmed on July 22 that all nationally chartered banks in the U.S. were now allowed to provide custody services for cryptocurrencies. It was a huge deal – although not great news for specialty platforms like Coinbase, who up till now had been the only guys allowed to perform the service.
Good news - US banks can now hold Bitcoin on behalf of their clients. Photo: Steve Pancrate / Unsplash
Ethereum catching upThanks to a boost from the DeFi movement, Ethereum surpasses Bitcoin as the network that settles the most value per day. Prices aren’t bothered and Bitcoin gains 2.50%.
New data from Messari showed that Etherum had taken over, which meant that the dollar on the value of both Ether and its DeFi tokens was now higher than that of Bitcoin. While Bitcoin had been trading relatively flat in previous weeks, DeFi tokens on the Ethereum network had been topping the charts. The DeFi sector was gaining popularity, and fast, and other crypto currencies were beginning to emerge within the market that to give Bitcoin a run for its money.
This explains why we see bigger pumps on ether than Bitcoin when the market moves upwards. Ethereum is evolving much faster than Bitcoin with the rapid growth in DeFi,
said Peter Chan, a trader for Hong Kong-based crypto firm OneBit Quant.
Black Swan author trashes BitcoinersNassim Taleb, outspoken economist and author of books including ‘Skin in the Game’ and ‘Black Swan: The Impact of the Highly Improbable’, takes to Twitter to trash-talk Bitcoin investors – although it turns out, he actually thinks Bitcoin itself is a pretty good idea.
“Almost all Bitcoiners are total idiots, can’t get nuances beyond fortune cookies,” he, quite meanly, tweeted. He was in a slanging match with Bitcoin enthusiast Giacomo Zucco, who believes that Bitcoin needs to be free from state control. It raised an interesting debate around the origins of Bitcoin as a decentralized, libertartion, real-world currency.
Bitcoin traders dominate the marketAs of June 2020 11.4 million BTC (about $107bn) are held by long-term investors, reducing the tradeable supply to just 20%. But, says Chainalysis, it’s the 3.5 million that are being actively traded that supply the market and therefore support the price.
“Retail traders, whom we categorize as those who deposit less than $10,000 worth of Bitcoin on exchanges at a time, appear to be the large majority, accounting for 96% of all transfers sent to exchanges on an average weekly basis,” found the report. “Professional traders, however, control the liquidity of the market, accounting for 85% of all the USD value of Bitcoin value sent to exchanges.”
US Pentagon creates Bitcoin-based wargameAn article on The Intercept reveals that back in 2018, the US Pentagon created a wargame scenario called the Joint Land, Air and Sea Strategic Special Program (JLASS), in which disillusioned young Gen Z-ers in the 21st century are recruited to fight the establishment, and rewarded with Bitcoin for their part in the “Zbellion.”
Could crypto be the currency of our post-apocalyptic future? Keep an eye on your kids, people…
New releaseBitcoin Core 0.20.0 becomes available, a major release which advances hardware wallet integration, cleans up the Bitcoin Core codebase, and improves hardware wallet integration.
The Third HalvingTo the unknowing, it still sounds like something out of an alien horror movie, but halvings are usually pretty good for the Bitcoin price – the first one pushed it from $12 to over $1,000 within a year. The latest, which occurred slightly earlier than expected on May 11, cuts the reward for mining a Bitcoin block from 12.5 to 6.25 Bitcoins.
It kickstarted a heck of a lot of volatility in the market, with the price bouncing around all over the place before breaking the $10,000 barrier again on June 1.
In fact, a whole lot of people were still pretty sure that it could top $20,000 again by the end of 2020. Crypto analyst PlanB was one of the biggest bulls – he said that the price could reach $100,000 between 2020-24. Now that’s optimism.
Although the upside wasn’t as big (proportionately) as earlier halvings, it marked the start of a pretty good summer – with lots of fun stuff happening, including the growth of new investment tools. The second half of June saw record inflows into Bitcoin-based exchange-traded instruments such as Grayscale(OTC-GBTC)’s Bitcoin Trust, the biggest Bitcoin fund by AUM, which as of September 2020 controlled 2.4% of the total global BTC supply.
A roaring AprilBitcoin is on a roll. The currency is up by 34% since the end of March, nudging $9,500 on April 30 and ending the month at $8,627.32. It’s roaring towards $10,000 again – but why?
Well, partly because it was on a bull run before the pandemic hit, and as investors regain their confidence (and the equity markets make a surprisingly strong recovery) it’s just getting back on track. It doesn’t hurt that Fed chairman Jerome Powell doubled down on his commitment to supporting the US economy, pumping in upwards of $6trn in liquidity and promising more if needed.
Most Bitcoin investors are now upbeat, with high hopes of hitting $20,000 by the end of the year. "Bitcoin is now trading at a critical inflexion point, where significant Fibonacci retracements, 50-day moving averages and 10-day moving averages converge on the daily chart," said analysts at Stack, an index fund based in Singapore.
Bitcoin predicted to doubleWell-known Bitcoin bull Mike Novogratz, CEO of crypto merchant bank Galaxy Digital, tells CNBC’s Closing Bell that if the Bitcoin price doesn’t double by October (from a high of $7,236.39 on 2 April) and reach $20,000 by the end of the year, he’ll “hang up his spurs” and might even give up on the currency. “This is the year of Bitcoin,” he promises.
He’s not the only one. Optimistic predictions abound this year, despite the pressures of the pandemic. The 10th edition of the Crypto Research Report (CRR) in June 2020 was also super enthusiastic. Using the “equation of exchange” model, which estimates a target price based on “certain assumptions regarding changes in supply and demand,” it predicted the price of Bitcoin to rise to $19,044 in 2020, $341,000 in 2025, and $397,727 in 2030. A 35-fold gain in five years? We’d take that.
New releaseBitcoin Core 0.19.1 becomes available, which is just a minor update.
Coronavirus hits cryptosThe plague strikes. Covid-19 crashes into our lives, and markets around the world take a dive. Bitcoin doesn’t escape, falling by over 50% in less than a week as the world moves towards lockdown.
On March 12 it dropped from almost $8,000 to below $5,000, losing 39% in a single day. Market liquidity froze up, and investors fled into cash.
Amazingly, however, Bitcoin traders got back into the game pretty quickly – by May, the price was back up to pre-pandemic levels, boosted by a massive Fed stimulus plan and 0% interest rates.
The Wright saga continuesRemember Craig Wright, that Australian crypto guy who claimed to be Satoshi Nakamoto back in 2015, to a somewhat sceptical community who basically pushed back with: “er, no you’re not?” Yeah, well he’s back – and he’s not happy.
Wright, who claims to be the sole inventor of Bitcoin, now says that the Bitcoin Core developer team are infringing on his intellectual property by making changes to the database. In a blog post on 13 February 2020 he wrote: “As the sole creator of Bitcoin, I own full rights to the Bitcoin registry. People can fork my software and make alternative versions. But, they have no rights to change the protocol using the underlying database.”
He also threatened to take legal action against both Bitcoin Core (the group that maintains and develops bitcoin) and Bitcoin ABC (which does the same for Bitcoin Cash (BCHUSD).
He hasn’t. But he might. It all makes for good watching.
Buffet gets his first BitcoinWarren Buffet is NOT keen on Bitcoin. In 2018 he rather melodramatically called it “rat poison squared” and in February 2020 he doubles down. "Cryptocurrencies basically have no value," he insisted. "You can't do anything with it except sell it to somebody else. I don’t own any cryptocurrency…I never will.”
But that didn’t stop the community from having some fun with him.
On February 5, 2020 a group of crypto pioneers including Tron Founder and Bittorrent CEO Justin Sun treated the 90yo Berkshire Hathaway legend to a three-hour charity dinner at the Happy Hollow Club in Omaha, Nebraska. They presented him with a pair of Samsung Galaxy Fold Smartphones loaded with a bunch of cryptocurrencies – and during the meal, Sun sent Buffet his first ever Bitcoin. Looks like he owns some cryptocurrency now after all.
In fact, despite Buffet’s bearish stance on Bitcoin, there were rumblings that he could be about to change his tune. He famously shifted his position on gold in 2020, taking a stake in one of the world’s biggest gold miners. Since then, pundits including Max Keiser have predicted that he could do the same for Bitcoin, possibly with a panic buy if/when the price hits $50,000.
Emoji successBitcoin makes it to the bigtime. In February, the currency gets its own emoji – revealed by Twitter CEO Jack Dorsey.
A CME partnership to be proud ofCME Group (CME), CME begins trading options on its Bitcoin futures contracts. The next day Bitcoin jumps almost 9% for joy.
The launch of contracts on the Chicago-based marketplace was a success which surpassed rival Bakkt in reported volumes within its first day of trading.
Bitcoin gets a festive boostBitcoin gets a nice little Xmas present in the form of a 10% jump on the back of positive market movement leading up to the holidays. Guess we’re not the only ones feeling Christmas cheer.
The seasonal boost was kind of expected, after research from digital currency exchange SFOX showed that Bitcoin usually saw a positive market response heading into holiday time.
Also in December, YouTube banned all cryptocurrency videos...by mistake. Doh. It later apologized, saying it had made the wrong call.
It's not an orange it's an....Ah, so you found the first one. Now go have a look at your favorite fruit-related symbol to continue your journey.
A big release is hereBitcoin Core version 0.19.0 is here with a whole host of modernizations, performance improvements, and bug fixes. Prices sink 5.63%.
The release was overseen by Wladimir van der Laan and developed by over 100 contributors over six months, the product of over 550 merged pull requests. One of the biggest changes was the “bech32” address format being set as the default option in the Bitcoin Core wallet Graphical User Interface (GUI).
People’s Bank of China causing chaosChina’s central bank launches a fresh crackdown on crypto currencies, and Bitcoin begins a decline.
The People’s Bank of China also warned people of the risk associated with using or trading cryptocurrency, and prices reached a six-month low.
China gets back in the gameThe price jumps after Chinese President Xi Jinping comes out in support of blockchain technology, saying he wants to invest further in cryptocurrencies.
Chinese President Xi Jinping comes out in support of blockchain technology.Photo: Ling Tang / Unsplash
Bitcoin futuresThe New York Stock Exchange launches its long-awaited market for Bitcoin futures through commodity exchange ICE Futures.
Back in 2017 the world’s largest futures exchange, the CME, also listed Bitcoin futures, as did the CBOE Futures Exchange (AMEX-CBOE). This time though, the move sent the price tumbling – possibly due to weak trading volumes.
Did you know that as of September 2019 there were 5,457 Bitcoin ATMs worldwide? Top of the list were the United States, Canada, the United Kingdom, Austria, and Spain.
New version updateBitcoin Core 0.18.1 is made available, a minor version release with new features, various bug fixes and performance improvements, and updated translations.
Trump tweet rallies BitcoinTrump gets a-tapping on his Twitter, causing trouble with China once again, and Bitcoin rallies as people start thinking digital currency might come in real handy if his bluster gets us into an actual war.
Bitcoin rose almost 9% in the two days after Trump sent a tweet about his plans to turn up the heat against China, saying:
The U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country.
Analysts pointed to the growing economic uncertainty surrounding U.S./China relations, and how it was driving investors towards digital assets as a possible disaster hedge.
Bitcoin has the ability to act as a more safe haven asset, and signs of a further deteriorating trade war with China could have been the primary catalyst to drive up Bitcoin prices following Trump's tweet,
said John Todaro, director of digital currency research for TradeBlock.
Republican leaders throw weight behind BitcoinOn the back of a cryptocurrency hearing held by the US Congress (prompted by the announcement of Facebook’s new digital currency, Libra) a number of Republicans come out in praise of Bitcoin – taking a radically different stance to their Commander-in-Chief.
Although most lawmakers were openly critical of Libra, Bitcoin came in for some surprisingly strong support. Republican House Minority Leader Kevin McCarthy told CNBC at the time: "I like Bitcoin ... The real thing I like when it comes to Bitcoin is I like blockchain because I like the security. I want the government to start using blockchain.” And during his testimony to the House on July 17, North Carolina Congressman Patrick McHenry told Congress that Bitcoin was “an unstoppable force” and efforts to suppress it were “futile.”
Trump weighs inPresident Trump gets involved in a big way. Turns out, he’s not a fan. In a series of aggressive tweets he claims that Bitcoin and other cryptocurrencies are “based on thin air” and accuses them of encouraging “unlawful behaviour.”
The price takes a hit – falling from over $12,500 on July 9 to just over $9,000 on July 16.
Want to know a fun fact? As of July 2019, Bitcoin's electricity consumption was bigger than Switzerland (over 7 gigawatts). Total Bitcoin mining costs sat at about $360 million per year (2019) – same as the total net worth of Taylor Swift.
Bitcoin climbs back over $10kThe price continues to climb for a further week, hitting $13,880 on June 26 before sliding back.
Taproot upgrade to boost privacyGenius Bitcoin developer Pieter Wuille unveils two Bitcoin Improvement Proposals (BIP) that could be the next big upgrade for the cryptocurrency, offering major privacy improvements.
The proposals sat within Taproot, a code change first proposed by developer Greg Maxwell back in 2018 to improve Bitcoin’s privacy. It was formalized by Wuille in May 2019 as a soft fork, bundled together with an upgrade called Schnorr, which adds a new type of signature. Together, they represented a major step forward for the privacy and scalability of Bitcoin – although there’s still a long way to go, and the full (and very complex) soft fork proposal wasn’t officially formalized until January 2020.
Still, the prospect of improved privacy pushed up the price, which rose from a high of $5,755.79 on May 6 to $8,167.50 a week later.
Happy 18th Birthday!Bitcoin Core 0.18.0 becomes available, a major new upgrade with the typical performance updates.
The update was overseen by Bitcoin Core maintainers and received contributions from over 100 developers. One of the biggest updates was users' new ability to connect to their hardware wallet from places like Ledger and Trezor with the Hardware Wallet Interaction (HWI) tool, making the whole blockchain interaction even safer.
GotchaNow, there have been a couple of April Fool’s jokes that have gone wrong before in the tech world (Elon Musk springs to mind). So you’d think by now they would have figured out that the markets don’t like surprises. This time though, a joke had the opposite effect, and Bitcoin got a bump on the back of it.
An April Fool’s article from Finance Magnates pretended that the SEC had finally approved the long-awaited Bitcoin-based ETFs. The post was taken down PDQ, but prices had already begun to climb – and even though the story wasn’t true, they didn’t fall either.
There was some speculation that this was because of Bitcoin trading bots, or that automatic keyword searches by traders got people ahead of themselves, but either way it was a great boost for Bitcoin, which carried on with this impressive momentum well into the year.
Pop and dropAfter a nice price jump the day before that takes Bitcoin back up above $4,000, the price goes into freefall once more, dropping almost 10% for no obvious reason.
Looks like we’d hit bottom though, because this was the beginning of a slow and steady increase for the rest of the year.
Price goes up, price goes down. Photo: Victor Rodriguez / Unsplash
Happy Valentine's DayBitcoin shares the love globally this Valentine’s Day, making Bitcoin content available in over 25 languages.
Bitcoin turns 10It’s been 10 crazy years since the mysterious Satoshi Nakamoto mined the first genesis block back on January 3, 2009 – a decade that has seen lawsuits, drug deals, feuds, forks, and a whole load of serious, never-seen-before wealth creation for the ordinary citizens of Planet Earth. On its 10th birthday, Bitcoin hits a daily high of $3,893.40. It’s not the stratospheric levels of 2017. But don’t worry, because the best is yet to come.
Merry ChristmasAs a little Christmas gift, Bitcoin 0.17.1 gets released. It’s a small upgrade and it seems people are feeling demanding this year, as prices fall over 6%.
Mining difficulty dropsBitcoin’s price enters yet another lengthy decline towards the end of 2018. A hard fork in the Bitcoin Cash (BCHUSD) blockchain makes it worse – although it doesn’t directly impact the original Bitcoin, confidence dips across the crypto market.
On December 3 the Bitcoin mining difficulty fell by about 15%, the second-largest drop in history. Why? Because Bitcoin mining difficulty is adjusted to account for how many machines are mining the market at any one time. This is to keep up a consistent 10 minute processing time per block. In general, the difficulty has only gone up since inception, as more and more people enter the game. But after a whole year of bearish performance, the difficulty level fell sharply – a clear loss of confidence. By December 16 the price, which was above $17,000 in January, had crashed to just $3,193.78.
Big banks mean businessHeads up. After all the drama last month, the big boys really are starting to wake up and show an interest, nine years late to the party. Investment giant Fidelity (FIS) starts up its own institutional platform for crypto trading on October 15.
BlackRock (BLK) also revealed plans for a cryptocurrency working group. It didn’t stop the volatility though, and the price continued to yo-yo.
Major new upgradeThe seventeenth generation of Bitcoin’s original software client, Bitcoin Core 0.17.0, becomes available with some major upgrades.
The new generation was overseen by lead maintainer Wladimir van der Laan and was the product of seven months, 135 contributors, and well over 700 merged pull requests. Some of the biggest changes improved coin selection and let users create new wallets whenever they wanted.
Minor upgradeA whole bunch of updates become available to various Bitcoin releases dating back to Bitcoin Core 0.14.3, in order to address some vulnerabilities.
All press is good press.. right?September 5 sees another dramatic drop in price of just under 10%, which carries on going for a few days after news that Goldman Sachs is ditching its plan to open a Bitcoin trading desk.
The news saw prices drop from $7,353.48 to $6,178.31 by September 8, erasing any gains the price made in August and adding fuel to the “Great Crypto Crash” fire. Although the Goldman CFO stressed that the rumor was “fake news”, and that Goldman had never planned to launch a BTC trading desk in the first place, concerns over the future of the cryptocurrency were growing.
Around the same time, a Reddit article revealed that a Silk-Road linked wallet with over 111,000 Bitcoins had been dumped on the market after going missing years ago, driving down the price even further. That’s supply and demand, for you.
Fake news: Goldman Sachs is ditching its plan to open a bitcoin trading desk. Photo: Roman Kraft / Unsplash
Crypto crashIt’s a bad month. Starting August at $7,726.85, Bitcoin fell to just $5,880 by August 14. In fact, it was a rubbish month for cryptocurrencies in general, which lost about 70% overall.
It raised fears over the mental health of all the amateur traders and investors losing money hand over fist as the markets hit panic mode, with reports of increased depression and suicides. Not very cheerful news.
Minor upgradeBitnerds get another minor upgrade, Bitcoin Core 0.16.2.
SEC rejects Bitcoin ETBitcoin isn’t having a great time of it, and in July the SEC rejected yet another Winklevoss application for a Bitcoin ET, sending prices down around 3%.
And the issues with the SEC weren’t over, becoming a contributor to the volatility that Bitcoin experienced for the rest of the year.
Advertising banUK banking group Lloyd’s (LLOY) and Virgin Money (LSE-VMUK) ban their customers from using credit cards to buy Bitcoin; while Twitter (TWTR), Google (GOOGL), and Facebook (FB) all outlaw crypto advertising.
Although they all ended up reversing their decisions pretty quickly, the blanket bans pushed the price back down below $6,000 by the end of June. An ongoing US Justice investigation into crypto price manipulation didn’t help either.
New versionBitcoin 0.16.1 becomes available, a minor upgrade.
Operation Crypto-SweepBitcoin just keeps falling, losing all of its recent May gains. Analysts were bullish leading up to the last week of the month, which saw Blockchain Week take place in New York, but expectations were hit and miss and the price dropped from $8,518.64 to $7,471.18 during the week.
Blockchain Week New York is a big deal in the cryptocurrency world, and for the last three years Bitcoin has seen a rise following the event, so it wasn’t completely unlikely that it would do the same this year. Bitcoin wasn’t the only cryptocurrency in trouble, with regulatory concerns pressuring the whole market. That week, both the U.S. and Canadian governments announced major plans for a crack-down on crypto investment schemes in what was named “Operation Crypto-Sweep.”
At least 70 investigations were already underway, adding onto the SEC’s efforts to bring a bunch of fraud cases against Bitcoin operators. The movement started a decline that lasted well into June.
Both the U.S. and Canadian governments announce major plans for a crack-down on crypto investment schemes in what was named “Operation Crypto-Sweep.” Photo: Michael Discenza / Unsplash
Back with a vengeanceAfter experiencing a dip since March 29, when prices fell over 10% and stayed there, Bitcoin is back with a 14% comeback.
The rally was attributed to an increase in buying volume on the day. Bitcoin had been facing worries about a regulatory crack down and tax-related sell-offs before the April tax deadline. When that passed with no major incident, the market gained a bit of confidence back.
Twitter banPrices sink 3.60% after Twitter announces a ban on crypto adverts.
Joining tech giants Google and Facebook, Twitter announced that it would ban advertising for cryptocurrencies in an effort to protect investors from fraud. Prices lost over 10% on January 30 after Facebook banned all crypto ads to prevent the spread of financial products and services “frequently associated with misleading or deceptive promotional practices.” It lost another 10% when Google followed suit on March 14.
The crackdowns came as global regulators started to notice the potential risks in Initial Coin Offerings (ICOs) and in digital coins released through fundraisings known as token sales. The SEC had already stepped up efforts to police the token sales process with a bunch of subpoenas earlier in March 2018 to cryptofunds, including TechCrunch founder Michael Arrington’s $100 million cryptofund.
That’s fine. They just have to figure out what they want. They need to set up rules so we can all follow them, and the market is begging them for that,
Arrington said at the time. It wasn't just the U.S. taking note either – the Chinese government banned all ICOs outright in September 2017, sending prices down over 7%.
Naysayers come out in forceAfter such a show-stopping December, there were high hopes for Bitcoin in 2018, but after the currency lost over $3,500 in early March, the mood shifted.
Some started proclaiming that the rapid drop in price was the work of a bubble that had to eventually burst. But there were also those who compared it to the Wall Street Crash of 1929. Was the rally just a blip before the whole thing came tumbling down? Clearly, the answer was no, but peeps didn't know that back then.
Even Mr Bill Gates, who in 2014 was bullish on crypto, changed his tune and said it was causing deaths in a “fairly direct way” because of its links to terrorist funding and money laundering. Seems a bit melodramatic, but OK.
After the currency lost over $3,500 in early March, the naysayers came out in force. Photo: 傅甬 华 / Unsplash
Sweet SixteenBitcoin 0.16.0 becomes available, a major new release, and prices lift just under 8%.
Bitcoin 0.16.0, which was overseen by lead maintainer Wladimir van der Laan and contributed to by over 100 contributors over five months, includes performance improvements, bug fixes and other optimizations. This release is sometimes referred to as the SegWit Special because most notably, it finally made Segregated Witness (SegWit) fully available for all wallet users along with adding a bunch of new features to the wallet interface. (SegWit is the name used for the implemented soft fork change in the Bitcoin transaction format.)
Segregated Witness itself first got introduced in Bitcoin Core 0.13.1 in 2016, but this was the first upgrade that allowed wallet users to make use of the added block space offered by SegWit, ultimately lowering transaction fees.
Chinese whispersChina totally bans all Bitcoin trading on 1 February and shuts down all mining activity, leading to a massive price slump. Bitcoin crashes almost 40% in value, dropping from over $10,000 at the end of January to $6,914 by 5 February.
Plenty of Bitcoin traders, who had made bank during the bull run of 2017, get “REKT” (as they call it in the chatrooms). Not everyone though – players like TheBoot carried on “buying the dip,” legendarily turning 0.6 of a Bitcoin into 300 between March 2018 and June 2019.
But Bitcoin is starting to make traditional bankers nervous. Agustín Carstens, head of the Bank of International Settlements (which represents the world’s central banks), in January 2018 labelled Bitcoin a Ponzi scheme that threatened global financial stability. “There is a strong case for policy intervention,” he said. “Appropriate authorities have a duty to educate and protect investors and consumers, and need to be prepared to act.”
Oh and by the way, there’s only 20% left! As of January 2018 a solid 80% of Bitcoin had already been mined. The clock is ticking...
South Korea takes a standSouth Korea, the world’s third-largest cryptocurrency market, suggests it might follow China’s lead and shut down crypto exchanges, calling the market “irrationally overheated.”
The move is deeply unpopular, and the price crashes back down to around $12,000 by the end of the year.
DeFi is bornThe concept of decentralized finance was ‘officially’ started by Bitcoin in 2009 as the first ever peer-to-peer digital money, but many see the real turning point as the launch of MakerDAO, marking the point at which financial apps started to help people do more than just send money from one place to another.
MakerDAO was an Ethereum-based protocol, the first of many, that created a way for anyone to take out a loan without relying on a centralized institution like a bank by pegging cryptocurrency at 1-to-1 to the value of a dollar, and letting people use digital assets as collateral. By 2021, just four years later, there were over 200 Defi applications in 2021 providing services ranging from basic lending to creating synthetic assets. Most DeFi projects (217 of 234 of them) are still built on Bitcoin competitor Ethereum, although as of 2021 there were also about 26 Bitcoin DeFi apps out there
As of February 2021, the total value locked in DeFi apps marked a new all-time high close to $40 billion.
All-time highBitcoin tops a record-breaking $20,089, and closes the day at an all-time high of $19,783.06.
In a hilarious story to end the year with, some guy called James Howells threw away an old hard drive that contained a wallet with 7,500 Bitcoins on it – worth upwards of $127 million. It ended up in a landfill site, and his local council wouldn’t let him look for it. Sucks for James.
Bitcoin smashes $10k – but is it real?In a gigantic jump, Bitcoin went from under $1,000 on January 1, 2107 to $10,840 on December 1: making a whole lot of people very rich (and very happy) in the process.
But were the gains real? Some people don’t think so, and University of Texas Professor John Griffin was one of them. He believes that a lot of it was actually due to coordinated price manipulation using another cryptocurrency called Tether (USDTUSD) – and it could have been done by just one rogue trader. He examined millions of transactions on the Bitfinex exchange and found that Tether (USDTUSD) was being used to buy Bitcoin as soon as the price started to fall, in order to bump it back up again.
The banks weren’t too impressed either. JP Morgan Chase (NYSE-JPM) CEO Jamie Dimon famously said that he’d fire any employee he found trading Bitcoin for “being stupid,” calling the currency a “fraud” that would not end well. Funnily enough, despite the trash talk, JP Morgan (NYSE-JPM) still bought over $3 million of XBT shares (exchange-traded notes that track the price of Bitcoin) in September 2017 – making it one of the biggest bank buyers in the crypto ring. We see you, Jamie.
All aboard the Swiss RailwayThe Swiss get on board with Bitcoin in a big way – in October, national railway service SSB begins selling Bitcoin through its network of ticket kiosks.
“Until now, there have only been limited opportunities to purchase bitcoin in Switzerland. With over 1,000 ticket machines, SBB has a dense distribution network that is available round the clock and is not only suitable for purchasing tickets, but also allows additional services to be obtained,” said SSB.
Bitcoin Gold trips at launchBitcoin takes another hard fork to create Bitcoin Gold (BTGUSD), in an ambitious bid to bring the currency back to its decentralized roots.
The aim was to reform the mining process in favor of smaller players. Nice idea, but sadly it didn’t work that well in practice – the new currency lost over 60% in its first few hours of trading. It’s still going however – hang on in there Bitcoin Gold (BTGUSD).
Flattered by hackersThey say imitation is the sincerest form of flattery, and Bitcoin prices soar 12% after some fake Twitter accounts impersonate Bitcoin Core developers.
The (unverified, at this point) Bitcoin Core Project had a number of fake Twitter accounts circulating, pretending to be Bitcoin core developers and contributors, and spreading fake news.
The next day though, the Bitcoin Core Project got verified, so it all worked out.
Segwit warsThere’s a new Bitcoin fork war going on over SegWit2x, and Bitcoin.org is heating things up by “denouncing” SegWit2x and naming and shaming a bunch of companies that support it.
Segregated Witness (SegWit) is the name for a Bitcoin protocol by which the block size limit on a blockchain is increased by removing signature data from Bitcoin transactions. The name refers to the different transaction signatures, as the process reduces the size a transaction takes on a block and therefore speeds up the network by moving “witness data” to the end of the transaction. In August 2017 Bitcoin Core, the most popular protocol software, began to implement SegWit transactions. In response, some developers hard-forked Bitcoin to a separate blockchain called Bitcoin Cash.
Bitcoin.org on October 5 announced that it would publish a banner on every page of the site warning users that the implementation actually put user deposits at risk. A whole host of S2X companies were fully named and shamed in the release, including 1Hash in China and Blockchain in the UK. Handbags at dawn.
Major new release with 0.15Another big release for Bitcoin as Bitcoin Core 0.15.0 becomes available.
The new release provides a bunch of bug fixes and optimization, including better fee estimates and more accessible fee bumping, initial support for multiple wallets in a single installation, and a number of significant performance improvements.
China shuts up shopOne of the biggest global outposts of Bitcoin trading, the Chinese authorities have always had a love-hate relationship with the asset. In September they make their boldest move yet, ordering the closure of all Bitcoin and cryptocurrency exchanges in the country.
The move had an immediate impact, wiping almost $1,000 off the price in just a few days and taking it back down to a low of $3,227 before it rallied again.
Fork in the roadIn a massive upset, the ultimate event occurs. In its first successfully hard fork, Bitcoin splits into two separate versions, and boom, Bitcoin Cash (BCHUSD) is born 👶🍼
The split was the result of the neverending argument over scalability, which the introduction of SegWit was supposed to have solved. But although no one really disagreed with the need to improve transaction speed through better blocks, they had very different ideas about how big they needed to be (apparently, size does matter 🤷)
SegWit optimized the blocks through a software upgrade. But another group of developers wanted the blocks to be even bigger (up to 8MB each), so they spun off into a whole new cryptocurrency called Bitcoin Cash (BCHUSD) (BCH).
By boosting the blocks, the theory was that more transactions could then be processed, making it cheaper and faster to use. BCH supporters, including Roger Ver (one-time CEO of Bitcoin.com and widely known as the “Bitcoin Jesus”) argued that by upgrading rather than increasing the block size, SegWit was pushing Bitcoin to act more like a digital investment rather than a real, usable currency, moving away from its original goals. What do you think?
The hard fork basically doubled Bitcoin holdings (so if you held 10 Bitcoins on July 31, by August 1 you’d hold 1 Bitcoin and 1 Bitcoin cash). The new currency began trading at about $240 (compared to $2,731 for its older sister).
Two roads diverged in a yellow wood. Photo: Jens Lelie / Unsplash
McAfee bets big (and the stakes are high)Bitcoin crusader John McAfee predicts on Twitter that Bitcoin would reach $500,000 within three years, promising that he’d “eat his own dick” live on TV if it didn’t.
In November 2017 he doubled down, betting that it would reach $1 million by 2020. People were pretty keen to see what happened – and a whole bunch of websites sprang up to track the (admittedly unlikely) possibility.
With Bitcoin barely hovering above $10,000 as of September 2020, it wasn’t looking likely – and in July McAfee backtracked, tweeting: “Not going to get out of it. I never believed Bitcoin would hit $1 mil. It's absurd. It’s an old, tired, worthless coin. I just wanted to eat my dick on TV.”
Spoiler alert: it didn’t happen, and he didn’t do it. He did, however, try to run for US President. Fun times.
SegWit takes offThe controversial Segregated Witness software upgrade is approved – oddly enough, sparking a slight dip in price, perhaps as traders price in the possible impact.
The upgrade was designed to improve a number of longstanding issues within Bitcoin. First, the issue of ‘transaction malleability’ – the bug that brought Mt. Gox to its knees back in 2014. But perhaps more importantly, the debate around scalability and block size. SegWit enabled the creation of a new payment protocol, the Lightning Network, which allowed almost unlimited numbers of instant and cheap transactions to take place “off-chain”. Although not fully activated until late August, the SegWit upgrade was hugely popular and supported by 100% of Bitcoin mining pools. World domination was pretty much inevitable.
Growing painsGet set for a couple months of incredible growth. Bitcoin goes from $928.10 on March 25 to $2,954.22 at the close of June 11. But growth doesn’t come without growing pains, and it slides way back down amid a broader sell-off in digital currencies.
The suffering doesn’t last too long though, and shortly after a relief rally brings prices back up from a low of $2,120 on June 15 to $2,740 on June 20.
Russia joins the crowdRussia suggests that it might legalize the use of cryptocurrencies – a pretty major deal for Bitcoin, which sees an immediate price jump.
It’s a big turnaround from the previous year, when Russian authorities said that anyone caught trading cryptocurrencies could be jailed. Why? Some cynical people think it could be to avoid sanctions on traditional banking channels, while others think it could be down to the Bitcoin benefits of speed, security and transparency. Either way, it took a while to happen – President Putin finally signed the bill to legalize cryptocurrency in August 2020. It allowed people to trade Bitcoin, but banned its use as a means of payment.
Russia suggests that it might legalize the use of cryptocurrencies. Photo: Felipe Simo / Unsplash
New upgradeBitcoin Core 0.14.1 becomes available with minor updates.
Japan takes the leadJapan officially recognizes Bitcoin as legal tender, a move that seems positive but may actually be a cynical attempt to regulate the currency and impose more restrictions on how people use it. Well that’s governments for you.
But although the rule change restricted Bitcoin’s freedoms in Japan, it was enthusiastically welcomed by the trading community. The price reflected the boost, jumping from $1,070 at the start to $1,350 by the end of the month. The official stamp of approval gave traders increased confidence. It also led to a surge of new exchanges in Japan, with 11 licensed by September 2017 alone.
Japan officially recognizes Bitcoin as legal tender. Photo: Nicki Eliza Schinow / Unsplash
Winklevoss woesThe SEC rejects an application from superhero twin brothers Cameron and Tyler Winklevoss to launch the first Bitcoin exchange-traded fund.
The decision caused prices to plunge dramatically in minutes, from a high of $1,350 to a low of $975, a whopping -28% swing, before closing the day over -6% down at $1,116.97.
Bitcoin Core 0.14.0Bitcoin Core 0.14.0 becomes available with a huge performance boost and a bunch of new features and bug fixes.
The 14th generation of Satoshi Nakamoto’s original software client is released, having been worked on by almost 100 contributors over 6 months, and includes mostly internal software improvements that are important under the hood but not massively noticeable to the everyday user. Some of the biggest changes included improved fee estimation and manual blockchain pruning, so users can get rid of older verified blocks and make space for new blockchain data.
Bitcoin-China breakupBitcoin and China feel like that couple that keeps breaking up, bad-mouthing the other, and then getting back together again. They’re back in the break-up phase right now though, with two of China’s largest Bitcoin exchanges blocking people from withdrawing their Bitcoins. It sends Bitcoin crashing down.
The news came following a meeting between the People’s Bank of China and the Bitcoin exchanges. The announcement was particularly hard-hitting because China dominated Bitcoin trading at the time, with almost 100% of Bitcoin exchanges taking place on Chinese exchanges.
Two of China’s largest Bitcoin exchanges block people from withdrawing their Bitcoins. Photo: Xiaokang Zhang/ Unsplash
Breaking the barrierBitcoin breaks $1,000 again for the first time in three years. It doesn’t stay up there, but the surge of new investors brought in by the constant publicity of the previous few years contributes to a massive bull run over the course of 2017.
It didn’t do too badly in 2016 either – it was, according to Business Insider, the top-performing currency of the year.
Merry Christmas (and a VERY happy new year…)Although super volatile, Bitcoin didn’t really do anything too mad during 2016. The coming year, however, would tell a very different story.
Trump electedDonald Trump is elected President of the USA, and markets tumble around the world. Investors exit the dropping equities market to look for new opportunities, which works in Bitcoin’s favor.
The price spikes by around 5% in a single day – ironic really, because Trump is notoriously not a fan of Bitcoin.
Cyber-ransomsFor a month Bitcoin has been hovering between $615 and $595, but a New York Times article on central bank usage busts it out of the slump.
Bitcoin has had a fairly up and down relationship with government and banking regulations, but it looked like central banks were gradually coming around to the idea of using blockchain technology, if not Bitcoin itself.
In 2016, a few banks also started looking into stockpiling Bitcoin to pay off cyber criminals who might threaten their systems.
A knack for getting hackedReuters gets a scoop, and it’s not pretty. According to the data, a third of Bitcoin trading platforms have been hacked at some point, and the risk for Bitcoin holders is doubled because there’s no such thing as depositors insurance for cyber theft.
However, this comes as a shock to exactly nobody after the whole Bitfinex (BITFINEX/BTCUSD) fiasco earlier this year, and prices hardly move.
Not much seems to have changed since then either – by 2020 more than $11 billion had been stolen from ‘secure’ crypto exchanges, wallets and mining platforms. You could buy an island or two with that.
Bitfinex hackUh oh, it’s another hack. Exchange platform Bitfinex (BITFINEX/BTCUSD) suspends trading after a security hack leads to the heist of almost 120,000 Bitcoins, and prices plunge in response.
Around 119,756 customer Bitcoins, worth about $72 million, went missing in the largest loss of Bitcoins since the Mt Gox crisis in 2014. Given the size of the loss, there was (understandably) a lot of confusion and frustration in the market and prices plunged almost 11% from $606.84 to $540.03, reaching a low of $465.28. Luckily, it began bouncing back the next day.
BrexitementAfter gaining almost 50% between June 1 and June 18, driven by the momentum of Brexit, prices lose almost 10% of those gains on June 21 after a poll shows that UK voters are leaning toward remaining in the EU.
Bitcoin lost a further 9.92% on June 22, after the poll helped push financial markets and the sterling higher but caused Bitcoin some trouble. It seems a lot of the Brexitement was because of the belief that a No Deal Brexit might soften cryptocurrency regulations. Added to that, the negative impact on both sterling and the euro could make way for another player… a digital currency perhaps? In fact, if the EU no longer governs UK regulations, the hope was that the UK might welcome Bitcoin with open arms to help bolster its economy.
Either way, people were excited. Imagine their reaction if they’d known just how long the “deal or no deal” business would actually go on for. Though the price took a hit on June 21, it recovered on June 23 when the referendum took place, though not quite to the same highs it was riding earlier in the month.
Bitcoin gets a May-jor boostThe second halving is coming up. People are excited, and Bitcoin is reaping the benefits. With a 10% price hike on May 28 it’s looking to be one for the books.
There were a few different ideas about what exactly caused the May boost, but it was most probably a combination of a few different things. Rival currency Ethereum had entered the market a few months before and was drawing more attention to the digital currency ecosystem globally, as well as finally providing Bitcoin with some real competition. Anticipation was also growing for the upcoming halving, and the possibility of Brexit was creating some excitement for the UK market, with the possibility that a split from the EU could benefits the digital currency.
Having started the month at $448.43, May closed at $531.84, and June only got better.
Satoshi, is that you?Craig Wright comes out to a few media organizations as the real Satoshi, and Gavin Andreson publishes an article backing him. Investors seem used to this to-and-fro by now, because prices stay pretty steady.
Craig Wright managed to convince the BBC to report on his “real identity”, saying he could offer proof that he was in fact the real Satoshi Nakamoto. Two Bitcoin luminaries, Jon Matonis and Gavin Andreson, hopped on board and Andreson wrote in a blog post that he believed Wright was the original Bitcoin founder following private proof. Wright went on to backpedal only a few days later, saying he was sorry but in fact could not provide proof of who he was.
Wright admitted in a blog post that he was not strong enough to handle the criticism he had faced after claiming to be Nakamoto.
I know that this weakness will cause great damage to those that have supported me, and particularly to Jon Matonis and Gavin Andresen. I can only hope that their honour and credibility is not irreparably tainted by my actions. They were not deceived, but I know that the world will never believe that now. I can only say I’m sorry,
Bitcoin Core responded to the claim by tweeting:
There is currently no publicly available cryptographic proof that anyone in particular is Bitcoin's creator.
Blockchain takeoverBitcoin reaches a closing price of $467.42, its highest since September 2014, after a few weeks of relatively steady overall price performance, despite volatility in daytime trading. Thoughts are that increased adoption of cryptocurrency tech in general could be behind the jump.
Globally renowned chip maker Intel (INTC) released plans to use blockchain technology, new developer of blockchain technology Storj joined the Microsoft (MSFT) Azure blockchain, and on April 26 the UK revealed plans to use blockchain to track taxpayer money.
The Japanese join the partyThe Japanese Government approves a bill recognizing virtual currencies as similar to real money, able to make payments and with the potential to be digitally transferred. This is a big step forward, with many other nations still struggling (some to this day) with the role that cryptocurrencies can, or should, be allowed to play.
The Amendment Bill to the Payment Services Act of Japan was designed to bring the industry under the supervision of the country’s Financial Services Agency (FSA) and bring in new registration requirements for virtual currencies exchanges, including foreign exchanges providing services to Japanese customers. It also imposed a whole new bunch of requirements on crypto exchanges, including recordkeeping, annual reporting, and anti-money laundering compliance.
ZKCP transactionBitcoin Core announces the first successful Zero-Knowledge Contingent Payment (ZKCP) on the Bitcoin network. Prices lift 2%.
Zero-Knowledge Contingent Payment is a transaction protocol that allows a buyer to purchase information from a seller using Bitcoin privately and securely; basically meaning you don't need to trust anyone because no information will be transferred if the payment isn't made. Just like one of those old movie style briefcase swaps.
New releaseBitcoin Core 0.12.0 becomes available, a major update produced after many release candidates in the past few months.
Developed by nearly 100 contributors over seven months, it was the twelfth generation of Bitcoin’s reference client as first launched by Nakamoto seven years before. It included over 20 improvements relating to performance, usability, and security. Some of the more notable changes covered memory pool limiting, blockchain pruning for wallet users, uploading traffic limiting, the introduction of opt-in replace-by-fee, the use of the anonymising tool Tor as a default, and faster signature validation.
Mike Hearn says goodbyeMike Hearn, the Bitcoin Core developer who earlier launched competing Bitcoin XT software, leaves the community in dramatic fashion, declaring: “Bitcoin has failed.” Btw, he’s the guy that Satoshi Nakamoto apparently sent his “resignation” email to back in October 2013.
Hearn predicted a massive price crash for Bitcoin – which, coming from such a respected developer, had its own impact. Bitcoin lost over $60 from its value, falling from $429.55 on 14 January to $360 the next day. In a lengthy post on Medium, Hearn complained that “the fundamentals are broken and whatever happens to the price in the short term, the long term trend should probably be downwards.” He warned that “the network is on the brink of technical collapse” and claimed to have sold all his coins.
Bitcoin, of course, is still going strong many years later.
Bitcoin Core developer Mike Hearn leaves the community in dramatic fashion, declaring: “Bitcoin has failed.” Photo: Dima Pechurin / Unsplash
Believe that I’m Satoshi or I’ll sue!Australian scientist Craig Wright insists that he is the real Satoshi Nakamoto in a headline-grabbing claim that convinces a whole load of people worldwide.
It all started with a Wired article published on 8 December 2015, which suggested that Wright could be Satoshi. The claim was based on documents given to Wired by researcher and dark web analyst Gwern Branwen, that strongly suggested a link. But then, Wired changed their minds. The magazine suspected that the documents may have been leaked to Branwen by Wright himself, and a couple of days later they published a U-turn, based on alleged “inconsistencies” in Wright’s story. Wired has since confirmed that it “no longer believes Wright is likely to be the creator of Bitcoin.”
He came pretty close though, and he persuaded a lot of people – including one of the original developers, Gavin Andresen, whose continued support of Wright eventually got his Bitcoin code access revoked, basically destroying his Bitcoin career. Wright struggled to convince the wider community though, and his claim is now widely disputed. Because basically, if you say you have the key to a Bitcoin wallet worth over $10bn, then eventually people are gonna expect you to be able to open that wallet. And, er, he didn’t.
But Wright stuck to his guns, and continued to maintain he was the real deal. A few years later he filed US copyright for the original Bitcoin white paper released back in 2008, and 2019 he even tried to sue the people who didn’t believe him (including Ethereum co-founder Vitalik Buterin, Bitcoin.com founder Roger Ver and Blockstream CEO Adam Back) using UK libel law.
It did not go well. But the story continues... In January 2021 Wright won a landmark ruling in the UK courts in an ongoing defamation case against Norway-based Twitter user Magnus Granath (Twitter name Hodlonaut), who had repeatedly tweeted that Wright was not the real Satoshi. It's been a complicated legal battle and it's not over yet but one thing is for sure – real or fake (and hey, we ain't judging either way), it makes for great TV.
A shot in the armIn a massive win for crypto, the EU declares no VAT on Bitcoin trades and rules it a bona fide currency.
By comparison, in September the U.S. authorities classified Bitcoin as a commodity. The European decision was as popular as the Queen of England*, and Bitcoin’s new tax-free status brought traders flooding in, pushing the price back up to over $300.
*Note: To all the pedants out there, yes, we know that there hasn't actually been a 'Queen of England' since Queen Elizabeth 1 back in 1603, after which the monarch became known as the King or Queen of the United Kingdom. But England sounded better, so we ran with it :)
The EU declares no VAT on Bitcoin trades and rules it a bona fide currency. Photo: Markus Spiske / Unsplash
CFTC crack downIn a move that doesn’t impact the price very much but makes unregistered Bitcoin derivatives firms very nervous, Bitcoin is classed as a commodity in the U.S. It’s not seen as good news by the community.
The Commodities Futures Trading Commission (CFTC) made the decision to class Bitcoin as a commodity along with oil and gold, and in September, ordered options trading platform Coinflip to stop trading as a result – with charges filed against the firm for unlicensed activity. Not cool.
The CFTC said that “while there is a lot of excitement surrounding Bitcoin… innovation does not excuse those acting in this space from following the same rules applicable to all participants in the commodity derivatives markets.”
Bitcoin XT creates constitutional crisisBitcoin Core developers Mike Hearn and Gavin Andresen sprinkle a bit of chaos into the community by releasing a new, slightly different version of the software called Bitcoin XT. Fears of a potential split send the price spiralling.
The issue boiled down to a debate over the size of the blocks in the chain. Andresen, Hearn and their supporters argued that as the currency became more popular, its blocks should be made bigger. If not, they warned that Bitcoin could fall off a “capacity cliff” where all its blocks ended up full, creating a backlog of transactions waiting to be included. This would overload the network with data and make for long delays, not to mention pushing up prices. As a solution, Bitcoin XT wanted to increase the block size from 1MB to 8MB, and then by a further 40% every two years.
The release of the new software spooked a lot of people though, because it raised the possibility that the Bitcoin community might not be able to reach an agreement on size. In a decentralized community, consensus is everything – and a permanent disagreement could mean a permanent divorce. It didn’t pan out that way this time – not many miners took up the Bitcoin XT option, and the alternative software eventually petered out sometime around mid-2016. But the possibility of a hard fork still panicked the market, and the price dipped from $261.46 on August 15 to $209.72 on August 24.
Gavin Andresen helps sprinkle a bit of chaos into the community by releasing a new, slightly different version of the software called Bitcoin XT. Photo: Stephen McCarthy / Wikimedia
New version updateBitcoin Core version 0.11.0 becomes available, which the team says will be much easier to use and easily adaptable to what the network currently needs.
One important feature of the new release addressed some issues regarding transaction volumes, which had resulted in the network experiencing major backlogging. At one point, the network had over 50,000 pending transactions as computers on the network battled to keep up with volumes. Other updates included estimation changes, privacy updates, and block file pruning changes.
Get them to the GreekThe past few months see prices generally sitting between $220 and $240, but on June 16 Bitcoin breaks out of the doldrums, spiking to a high of $252.05 on the back of a shaky Greek economy.
Yep, really. People thought that the price bump was related to the state of the Greek economy. It seems like a wild leap at first, but the Greek economy was not looking good. And if the country defaulted on its loan obligations, bank accounts might be frozen. And in that case, digital currency might be the only way of getting money in and out of the country. See the logic here?
Some hoped it meant that the volatile currency had finally found a floor, and that it would be all upside from here on out. They were wrong.
Coinbase comes to the UKCoinbase, the first licenced Bitcoin exchange in the US, opens its (virtual) doors across the pond, giving Bitcoin a nice little boost after a tumultuous April.
The Bitcoin payment processor now allowed people to transfer from GBP into Bitcoin, and vice versa. It was good timing, because the world had just seen the UK come out in support of digital currencies in the name of financial innovation. London was also home to Coinscrum, the biggest Bitcoin networking group in the world.
After the April decline, the 5.10% price jump was a welcome one.
Bitcoin 'laid bare' by board memberThe Bitcoin Foundation gets a brand new member in March, and it seems that Olivier Janssens’ first order of duty is to divulge a whole load of Bitcoin secrets in a Reddit post, claiming that the Foundation is "effectively bankrupt" as a result of "two years of ridiculous spending and poorly thought out decisions." It understandably ruffles some feathers.
The post was taken down, but the damage had been done. His expose claimed that the Bitcoin Foundation had almost no money left, had fired 90% of its people, and regularly used intimidation tactics to suppress leaks.
Now, The Bitcoin Foundation doesn’t necessarily represent Bitcoin, but it works to make Bitcoin globally accepted – and a knock to its reputation is a knock to the currency. The post was released on April 5, and sparked a steady decline that took the price from $260.54 on April 5 down to $215.80 on April 14. Though things started to look up slightly from there, April to June was notable for massive volatility.
Site updateBitcoin gives off earnings report vibes by announcing the details of a site upgrade that took place over March that addressed a number of key issues, and sharing some website stats with the group. Prices lift 2.67%.
The website upgrades were a product of contributors, and some of the biggest upgrades included fixing all of the broken links on the website, the addition of seven new Bitcoin events, and the removal of the KnC and Coinapult wallets after some issues. Bitcoin.org also released some stats, saying that there had been 4.3 million people visiting the site in March – more than double the previous month – although Bitcoin says that some of that could be an attempt at referrer spam, so the numbers are actually more likely to be around 2 million.
Coinapult is compromisedCoinapult, the service that lets you secure the value of your Bitcoin in fiat, is ironically hacked.
Hackers managed to get into the platform on March 17 and steal around 150 Bitcoins, worth $43,000. A terrible Tuesday indeed. Access to the site had to be disabled and everyone was warned off sending Bitcoin (and reminded of its dangers). Chinese bitcoin exchange BTER also had a cold wallet hacked earlier in the year, losing over 7,000 bitcoin; and an AllCrypt hack also led to a BTC42 loss.
Looks like the security concerns were getting to people – on news of the hack there was an overnight drop of almost 10%.
Quarterly reportIn a rare move, Bitcoin releases a quarterly report, and for a notoriously volatile asset, prices stay impressively steady.
Bitcoin released a quarterly report based on Q1 2015, and they’ve been getting busy. The website had over 7 million page views for the quarter, added three new wallets to the page for users to choose from, over 114 new pages of developer documentation, and now has translations available for 26 languages.
Bitcoin core updateBitcoin Core version 0.10.0 is here. Notable changes include faster synchronization, transaction fee changes, and improved signing security to protect against unusual attacks. Prices sink 8.31%.
The currency comes into its ownBitcoin is now accepted by over 100,000 retailers worldwide: including Microsoft (MSFT), Dell (DELL), Wikipedia, Twitch, Greenpeace, Expedia (EXPE) and PayPal (PYPL). The widespread merchant adoption reassures people that Bitcoin has real value as a currency, not just as a digital investment.
Data (from Bitcoin payments processor BitPay) also showed that Bitcoin venture capital activity was up by 342% last year, from $96 million in 2013 to $335 million in 2014. Major deals included $40 million for Xapo, $30 million for Blockchain, and $30.5 million for BitPay itself.
Bitstamp barrageHackers break into the Bitstamp exchange through a targeted phishing attack on employee Luka Kodric, gaining access to its servers and stealing almost 20,000 Bitcoins worth over $5 million. The price drops from $264 on January 4 to $171 a week later.
It wasn’t the end of the world – it wasn’t even another Mt. Gox. The hackers only stole a small proportion of Bitstamp’s total coins, and the theft didn’t affect any customer accounts or breach the “cold storage” area where most of its assets were kept. What scared people, though, was the systematic social attacks on exchange employees. Six of them were harassed for months in a heavy phishing attack that included constant messages over Skype and numerous emails and attachments.
Poor Kodric was finally convinced to download a Word doc, which contained a virus that the hacker used to break into the Bitstamp servers. It was a new type of attack – one that might seem obvious to us now (never open a suspicious file from someone you don’t know) but at the time, it made for a pretty major dent in the currency’s reputation.
Bearwhale breaks the bankA random trader offloads the biggest deal Bitcoin has ever seen. He tries to sell 30,000 coins on the Bitstamp exchange at a limit price of $300, well below the current mid-300s trading price. The ‘Bearwhale’ confuses the market – why so much? Why so cheap? – and the price wobbles for a moment. But, crucially, only for a moment.
This one can actually be counted as a win – pretty much the whole amount was absorbed, and the price regained stability quicker than a first time lover. Some people think the size of the $9 million cut-price deal was a deliberate ploy to raise profile and draw new buyers into the market, which might have helped to absorb the volume. Either way, the whole “slaying of the Bearwhale” thing has become legendary in the Bitcoin universe, inspiring a whole range of mythology, poetry and art immortalizing his madness. Who doesn’t love a good meme?
Retailers get on boardA whole bunch of hopeful retailers get on board with Bitcoin over the summer: including Microsoft (MSFT), Dell (DELL), Braintree (a Paypal (PYPL) subsidiary), and online shopping giant Overstock (OSTK). But this doesn’t stop the long-term price slide, and by the end of the year Bitcoin is back to below $300.
In fact, there’s the chance that the big companies were actually the ones pushing the price down. They’d accept Bitcoin as payment but immediately put their holdings back on the market to exchange them back into normal currency, shoving up supply and devaluing Bitcoin.
With great power comes great responsibilityBitcoin mining pool GHash reaches 51% of all hashing output, giving it the power to sidestep the decentralization of Bitcoin’s blockchain and control a lot of its functions.
What does that mean? Well, hashing is basically the calculation process that creates a Bitcoin – it’s what miners do to create the individual blocks, which then get added to the chain. If someone controls more than 51% of the hashrate they can get up to all sorts of trouble – like rejecting or even reversing transactions, spending the same coins twice, demanding higher fees, and even denying service to the Bitcoin network. Lots of 51% attacks get launched on crypto networks to try and gain control, and it raises an interesting question around security.
GHash weren’t one of the bad guys – CIO Jeffrey Smith promised they didn’t want to damage Bitcoin, and swore he “never had and never will participate in any 51% attack or double spend.” Later that year the mining pool actually brought miners and developers together in a round table to try and figure out a longer-term solution to the 51% problem. This turned into support for the Segregated Witness functionality (more on this later), along with a hard fork to increase the block size limit to 4MB by July 2016.
Bitcoin loses currency statusDisaster. Following in the footsteps of China, America’s IRS decides that Bitcoin is property rather than currency – opening it up to capital gains tax.
The move struck a blow to the crypto’s original ideals of freedom and decentralization. The loss of faith triggered a loss in value – around a third over the following month, from over $600 on March 10 to just over $400 in mid-April.
A shiny new brandBitcoin Core version 0.9.0, a major new release, arrives with some shiny new branding.
The developers announced they were renaming the Bitcoin reference client from Bitcoin Q-t to Bitcoin Core, after some confusion between the network and the software. The new Bitcoin Core 0.9.0 included fixes for transaction malleability related issues, as well as some updates to how transactions are relayed on the network. Notably, the new version included coin control features and a Windows 64-bit installer.
Will the real Satoshi please stand up?A Newsweek article on March 6, 2014 claims that the real Satoshi Nakomoto is in fact a guy called….Satoshi Nakamoto. Confused? Yeah.
Dorian Prentice Satoshi Nakamoto was a Japanese-American systems engineer living in California, whose birth name really was Satoshi Nakamoto. Newsweek Journalist Leah McGrath Goodman made a strong case that he was the real founder of Bitcoin, pointing to his experience working with defense systems and as a computer engineer. When she asked him about Bitcoin for the article he apparently said: "I am no longer involved in that and I cannot discuss it. It's been turned over to other people. They are in charge of it now. I no longer have any connection.” That’s pretty compelling stuff – but turns out it was wrong. In later interviews, Nakamoto denied all knowledge of Bitcoin, saying he’d never heard of it before, and had thought Goodman was asking him about his previous work on classified defense projects. Another one bites the dust.
Hang on though, there’s more. Nakamoto lived just a couple of blocks from crypto pioneer Hal Finney, one of the first developers to work on Bitcoin. Perhaps Finney was the real founder, and he just stole the name of his neighbor (because, let’s face it, Satoshi Nakamoto sounds way cooler)?
On 25 March 2014 an article in Forbes suggested exactly that. But in yet another plot twist, by that point Finney was suffering from ALS, a form of motor neurone disease that left him almost completely paralysed and able to communicate only by blinking. He apparently denied involvement, but Forbes journalist Andy Greenberg came up with a ton of research that suggested otherwise. Sadly, Finney died in August 2014, so it looks like we’ll never know.
A Newsweek article on March 6, 2014 claims that the real Satoshi Nakomoto is in fact a guy called….Satoshi Nakamoto.Photo: Ben Sweet / Unsplash
Mt. Gox goes darkThe world's biggest bitcoin exchange, Mt. Gox is bankrupt. Bitcoin drops from a high of about $1,160 in December 2013 to under $400 in February 2014. Wallets are emptied, lawsuits are launched, and the drama continues to this day. Amazingly, however, Bitcoin proves resilient to the reputational hit, with people blaming the exchange rather than the asset.
It reads like a soap opera, but the story of Mt. Gox is central to the early years – and early success – of Bitcoin as a tradable asset. Launched in 2010, by 2014 it was trading about 70% of all Bitcoin in existence, and its charismatic CEO Mark Karpeles was enjoying life in Tokyo (some folks even believed he was Satoshi Nakomoto himself).
But the nails were already in the coffin. Mt. Gox had suffered through numerous hacking scandals starting as early as 2011, and in February 2014 things went properly belly up.
While Karpeles was putting the final touches on his ‘Bitcoin Cafe’ on the bottom floor of the Mt. Gox headquarters (never underestimate the importance of a bespoke quiche oven), hackers were siphoning off all the exchange’s assets using a flaw in the Bitcoin protocol. “Transaction malleability” was a design fault that allowed multiple withdrawals of the same amount – but it wasn’t a new thing. Other exchanges had already identified and coded around the problem. Mt. Gox had not – mainly because Karpeles had written almost all the code himself, without any oversight. With hindsight this seems… a little unwise?
The exchange was broke – pretty much all its Bitcoin assets had disappeared, including about 650,000 coins belonging to customers (worth about $40m) and 100,000 belonging to the exchange itself. It suspended trading on February 24 and went permanently dark just hours later. People were furious, and a whole bunch of lawsuits were launched against both Mt. Gox and against Karpeles himself, including from competing US-based exchange CoinLab, as well as hundreds of seriously pissed off clients. Many of them are still dragging on to this day.
The value of Bitcoin unsurprisingly tanked, losing over a third over the following month. But things actually could have gone a lot worse. Although the price dipped it didn’t go into the free fall that everyone expected, with most people blaming the mismanagement of Mt. Gox rather than being scared away from the currency itself.
Random fact: In February 2014 the first ever Bitcoin ATM was opened in Austin, Texas by Jordan Kelley, original founder of alternative crypto Robocoin.
China's back on boardAfter banning the currency only a month ago, BTC China resumes trading, despite the People’s Bank of China clamping down on the currency back in December. Prices sit steady.
Bitcoiners got some good news when BTC China, which is one of the most prominent exchanges in the world, would/could begin accepting trades in yuan once again.
Everything is hunky dory. Essentially the government never disallowed it.
Bobby Lee, CEO of BTC China, told CNBC. Seems like a lot of drama for nothing, but that seems to be the Bitcoin/China way.
China changes its tuneChina does a U-turn on Bitcoin. The Chinese central bank bans financial institutions and payment companies from using the currency, leading to a surprise collapse.
Buying real goods with virtual currency has been illegal in China since 2009, but internet giants like Baidu (BIDU) and YeePay were still accepting Bitcoin for a whole bunch of services. The 2013 ban stopped all that, and the central bank declared that Bitcoin was not a currency but an asset. That made it liable for a bunch of new taxes, and people weren’t happy.
In the same month BTC China, the country’s biggest crypto exchange, stopped accepting deposits in Yuan. Although the currency remained legal for individuals to trade, without third party payment providers such as BTC, activity practically ceased overnight.
Remember how we said China was a massive influence on Bitcoin? It lost almost half its value, falling from $1,131.76 on December 4 to close at $693.30 on December 7. It wouldn’t close out at $1,000 again for another three years.
Can a bot break Bitcoin?Bitcoin reaches $1,000 in November: the end of a long-term price rise that started with the first Bitcoin halving back in 2012. But wait – the plot thickens.
Research from the University of Tulsa and Tel Aviv University found that the 2013 spike might actually have been driven by two bots – created by a single shadowy figure in the background.
Between them, the bots bought and sold hundreds of thousands of Bitcoins over the year in order to manipulate the market. November saw mad volatility, with the price rising and falling by as much as 50% in a day on November 19. It reached a high of $1,163 on November 30 before starting a longer-term decline that would last, give or take, for the next two years.
China charges inChina’s foreign minister Wang Yi takes a positive stand. He announces at a conference that people in China are “free to participate in the Bitcoin market,” and promises to “adopt a long-term perspective” on the currency.
This reassurance did a lot to calm people’s nerves. BTC China (by then the largest Bitcoin exchange in the world) saw trading volumes shoot up while the overall Bitcoin price hopped up from just over $600 to over $1,000.
China has always been a major influence on Bitcoin, with Chinese traders keen to embrace its freedoms as an alternative to the highly-controlled domestic currency. As a result, the Chinese authorities have a bit of a love-hate relationship with the cryptocurrency, and they’ve blown hot and cold over the years when it comes to controlling access. When they do show support though, it can have a massive impact on price and volume.
China’s foreign minister Wang Yi announces that people in China are “free to participate in the Bitcoin market.” Photo: Li Yang / Unsplash
Silk Road gets seizedRemember that secret online black market called Silk Road that uses Bitcoin for shady transactions? In October 2013 the plug is finally pulled, and Bitcoin prices plunge over 18% from $127.30 to $103.85 as a result – hitting a low of $85.
A massive two-year FBI sting led to Ulbricht’s dramatic arrest in the San Francisco Public Library (back in the days when real books were a thing). About 144,000 Bitcoins were seized from his private stash and sold in a blind auction (won by legendary crypto champion Tim Draper) and the Dread Pirate is now serving life in prison.
He hasn’t thrown in the towel yet though – and he’s still one of Bitcoin’s biggest bulls. Posting from prison, in April 2020 he speculated that Bitcoin could eventually reach a staggering $333 million per coin which, assuming a market limit of 21 million bitcoins, would give a market cap of $7 quadrillion. “That's more than ten times the current GDP of all humanity,” he said on his private Medium account. “So the point is – long term – the sky’s the limit.” Nice to see he hasn’t lost his optimism.
Nor did the market. Despite all the drama, Bitcoin rebounded by a solid 13% the day after the arrest.
Bitcoin takes a tumbleAfter starting the year at $13.24 and reaching heights of $235.29 in April, prices close at a low of $66.93 on July 5. It’s not a good look.
There were a couple of things going on at the time that could have contributed. The world’s biggest known Bitcoin exchange, Mt. Gox, stopped paying people out in US dollars, with no real explanation except some mumblings about “increased volume of transactions”. The media also kind of lost interest in Bitcoin at this point, after the hype of its impressive rally earlier in the year.
On top of all that, at this point, you still couldn’t really use Bitcoin to buy a whole lot of stuff, which kind of sucks for a currency. Oh, but what a different future lies ahead for this young cryptocurrency – just you wait.
First Bitcoin seizureThe U.S. government makes its first-ever Bitcoin seizure, and prices lose just under 7%.
The U.S. government announced that on April 12, they had made their first ever seizure of Bitcoin following the raid of an alleged drug dealer. The Drug Enforcement Administration seized 11.02 Bitcoins from a man suspected of selling drugs on Silk Road.
Living on a BitcoinAmidst the rising hype, Forbes journalist Kashmir Hill decides to challenge herself to not just buy the currency, but to live on it for a week. It went surprisingly well.
She went onto Coinbase, bought 5 Bitcoins at $126.69 each (which were worth $142 each by the time they arrived a few days later) and set to work. Turned out it could actually be done – or just about, barring a fussy landlord who didn’t think Bitcoin was a good substitute for rent. But it wasn’t easy.
Forbes journalist Kashmir Hill decides to challenge herself to not just buy the currency, but to live on it for a week. Photo: Kam Idris / Unsplash
Panic selling halves priceBitcoin drops over 70% in two days as a panic sell-off ensues.
Bitcoin fell from $228.94 to $68.09 in just six days after a selling frenzy began, leaving the currency back where it had started for the month. The sell-off came as Bitcoin’s main exchange, Mt Gox, struggled to keep up with the volume of trading. Things got so crazy that Mt Gox, who at this point was in control of over 70% of all Bitcoin trading, had to suspend trading completely to let things settle down.
The rather astonishing amount of new accounts opened in the last few days...made a huge impact on the overall system that started to lag,
the exchange said.
As expected in such situations, people started to panic, started to sell Bitcoin in mass...resulting in an increase of trade that ultimately froze the trade engine.
It was a bit of a kick in the teeth for investors, but the month had seen such a strong incline that anyone who had bought the currency the month before would still be making quite a profit.
Bitcoin busts through $100Bitcoin breaks the all-important $100 barrier for the first time, jumping from $96.15 on March 31 to close at $104.70 the next day. But then things start to get seriously volatile – mostly due to a whole ton of media coverage, which brings a bunch of new traders into the market. The price hits $200 by the second week of April, then falls by 70% overnight, breaking $50 by week three.
A series of outages and processing delays at major crypto exchanges including Mt. Gox and BitInstant didn’t help much. In fact, things got so crazy that from April 11-12 Mt. Gox, which was by this point handling over 70% of global Bitcoin trades, suspended trading altogether in order to cool things down. Easy, tiger.
If you’d bought $100 of Bitcoin on April 1, 2013, you’d have had $6,652.07 on April 1, 2020. It’s not gonna get you a yacht, but you could afford a pretty sweet swan-shaped pedalo.
Bug breaks blockchainA bug in version 0.8 of the Bitcoin software causes a temporary fork in the blockchain. For a couple of hours, two different versions operate at the same time, creating complete chaos.
Notorious Bitcoin exchange Mt Gox was forced to halt trading for a few hours in order to figure out just what the f*** was going on, and the price dropped by about 23% during the day. But in a brilliant display of teamwork, developers, coders and the wider Bitcoin community all pulled together to work on a fix. By downgrading most of the network back to an earlier software version they managed to get the whole thing back up and running within less than six hours. That’s barely enough time to drive from LA to Las Vegas for a quick spin on the slots. An updated version (v0.81) was quickly released to stop the problem from happening again.
A failed new releaseNew client software, Bitcoin-Qt version 0.8.0, becomes available, designed to deal with the increasing volume of transactions on the network. With great popularity comes great responsibility. But there are some compatibility issues that force a hard-fork back to 0.7.0.
Considering Bitcoin had about $240 million of venture capital funding at the time, but only two people working on core protocol full time, software glitches were bound to happen. When Bitcoin 0.8.0 was released, people found that it wasn't compatible with the others – like when you had to upgrade your Windows PC and none of the old software would work afterwards. Version 8 basically allowed for larger block sizes than the older versions could deal with, and with only half the networks using the upgrade, there was a worry that two versions of the Bitcoin ledger would merge. Luckily, the community was on the ball and sounded the alarm, which led to a hard fork back to the last version.
BitPay makes historyBitcoin is making its voice heard all around the world, and BitPay is helping pave the way. The world leader in bitcoin payment processing, BitPay surpasses 10,000 Bitcoin merchant transactions in January, with not a single case of payment fraud. Look, Gepetto, it’s a real live currency!
Transactions aren’t the only thing increasing, with Bitcoin gaining over $4 for the month.
Halving day = happy timesBitcoin undergoes its first halving – when the reward for mining new blocks is slashed by 50% in order to cut the supply of new coins and control inflation.
Halvings are supposed to happen once every 210,000 blocks (about every four years) up to a maximum of 21 million Bitcoins and a reward of $0 – expected to happen around 2140. When demand is high, halvings can push the price up, although market reaction can be tough to predict. This first one was super successful though, cutting the mining reward from 50 Bitcoins to 25.
It kickstarted a massive run on demand which boosted the price from $12.07 on November 27, 2012 to over $1,012 a year later – a return of more than 8,000%.
WordPress makes Bitcoin historyBitcoiners rejoice, for Bitcoin is making its way into the real world. WordPress becomes the first major company in the world to accept Bitcoin as payment. Prices lift 3.71%.
The fact that a company like WordPress is taking Bitcoin, it shows that is widespread enough to trust it, but I wonder after a year if they can tell us how much of their revenue will be paid in Bitcoin... It's going to introduce a lot of people to Bitcoin and it’s a vote of confidence,
said Jerry Brito, a Bitcoin boffin at George Mason University.
The Bitcoin FoundationThe Bitcoin Foundation launches with the main aim of promoting the uptake of the new currency. Prices don’t move much on the day, but it’s a big step.
New version releaseBitcoin-Qt version 0.7.0 becomes available and updating is seriously advised.
Pirate ponzi schemeBitcoin’s getting more popular, and as it does, more people are trying to make a quick buck. In August 2012 a massive ponzi scheme crashes and burns, making headlines around the world. Run by chatroom pundit Trendon T. Shavers (known as Pirateat40 – what is it with crypto-criminals and pirates?) the Bitcoin Savings and Trust scheme is the biggest Bitcoin fraud to date.
When the sh*t hit the fan, Shavers escaped with around 146,000 Bitcoins, worth more than $800,000 at the time. But he didn’t get away with it. The SEC charged him with defrauding investors, and arrested him in 2014. In 2016 he was sentenced to 18 months in jail and ordered to pay $2.4 million in damages. However, that fine was nothing at all compared to the separate civil action against him, where he was put on the hook for a whopping $40 million in compensation. In this case, crime really didn’t pay.
Bitcoin got stung by the fallout, losing almost half its value and falling from $13.42 on August 16 to a low of $8.06 on August 19. It recovered pretty quickly though – climbing back over the $10 mark by August 20 and rising steadily over the next couple of months.
Double digits returningBitcoin – ever volatile – has been slowly rising again over the last few months after the price peaked back in June 2011 and a lot of people began thinking it’s just a passing fad. But it proves the haters wrong, rising back above $9 for the first time in almost a year.
And hacked againBitcoinica, one of the first Bitcoin exchanges, is hit again with the theft of 18,000 Bitcoins. Having managed to survive the impact of the March Linode hack, this sends them over the edge and the exchange shuts down in the face of a $460,000 lawsuit from users.
The shock value of Bitcoin hacks may be starting to wear off though, as the price didn’t move much. These early investors were hella loyal.
Hacker heistPrivate server network Linode is hacked. Almost 50,000 Bitcoins are stolen from the e-wallets of customers including Gavin Andresen, Bitcoin’s lead developer – a bit embarrassing all round. This is one of the first, but certainly not the last, headline-grabbing thefts to bring Bitcoin into the public eye. But hey, that’s what you get with a decentralized system – everyone wants to test it.
The high-profile hack coincided with the growing popularity of Hacker culture, boosted by Mark Zuckerberg’s letter to investors ahead of Facebook (FB)’s 2012 IPO in which he praised “the Hacker Way.” In it, he claimed that “the vast majority of hackers I've met tend to be idealistic people who want to have a positive impact on the world.”
Probably not the guys who hacked Linode though, to be fair 🤷.
Banks bite backLeading payment platform Paxum drops Bitcoin and starts selling off its Bitcoin assets.
Paxum said that “pressure” from its banking partners was behind the decision. Were mainstream players starting to feel a bit threatened by the Bitcoin boom? The price dipped slightly from $5.50 on February 11 to $4.23 on February 18, but it didn’t seem to put people off too much.
Happy wife, happy priceBitcoin announces its Hollywood debut on hit TV show, “The Good Wife”, which is set to air a “Bitcoin for Dummies” TV episode.
The initial announcement sent the price up 10% as people got excited. When the episode finally aired on January 15, 2012, the price rose even further, by more than 13%. Ah, the allure of the silver screen.
The Good Wife cast. Photo: The Peabody Awards / Unsplash
New version releasedBitcoin-Qt version 0.5.0 is released with bug fixes.
Back to basicsIt's a great summer for Bitcoin, but by autumn it drops around 90% from its June peak, falling back below $3 to head back into single digits.
The crypto-novelty and a wave of media coverage over the summer had given the price a push, but a few PR disasters pushed prices down to a point where it costed more to mine than what they were worth. Notably, a crash on crypto exchange Mt. Gox due to a compromised user account sent the price from $17 to cents, while a subsequent data breach that circulated the personal details of thousands of Mt. Gox users online did nothing to improve its reputation. It wasn’t going to be the first time that Mt. Gox had problems...
Poodlemania ($10 ceiling)It’s party time, as Bitcoin breaks $10.
If you’d bought $100 of Bitcoin on August 15, 2011, by August 15, 2020 you’d have had $117,763. That’s enough to buy 147 pedigree poodle puppies, in case you’re looking for new friends.
New version releaseBitcoin version 0.3.24 becomes available, with advances in block downloading, and a crash caused by loss/lack of network connection fixed.
Mt Gox crashMt Gox, the largest Bitcoin exchange in the world (at this point), announces a security breach and prices sink to $0.01.
Mt Gox announced that the names, password hashes, and emails of over 60,000 users had been stolen. An unknown hacker accessed the admin account and sent hundreds of thousands of fake Bitcoin, which crashed the price of the currency from $17.5 for one coin to 1 cent per coin. Yikes.
New version releaseBitcoin version 0.3.23 becomes available with a quick bugfix, trying to deal with the influx of new Bitcoin users.
Bitcoin bubble burstsAfter rallying from $1 in February to highs of $31 on June 8, the bubble bursts and prices tumble back down to single digits by June 12.
The sudden climb gave crypto fans huge hope in the currency, with some expecting the price to reach highs of $1,000 and enter mainstream usage by the end of 2011. The crash brought as much despair as the climb had given hope, and soon the existence of black market applications like Silk Road had people questioning the future of Bitcoin. By November, Wired magazine declared the currency as fallen, writing an article titled the “Rise and Fall of Bitcoin”.
New upgradeBitcoin version 0.3.22 becomes available, which includes a new fee schedule that demands the client will accept and relay TX's with a 0.0005 BTC fee schedule.
Pirate pushes up priceA Gawker article about shady underworld website The Silk Road goes viral. It includes a weblink to the (now defunct) Tokyo-based Bitcoin exchange Mt Gox, which kicks off a massive surge in traffic as people head over to see what all the fuss is about. The price bumps up from around $10 to over $30 within the month.
Led by the Dread Pirate Roberts (codename of Californian programmer Ross William Ulbricht), The Silk Road holds a special place in the halls of Bitcoin history. Money laundering, hitmen-hiring, and drug dealing – it was the place to go for everything underhand and illegal. But crucially, it was also one of the first darkweb sites to use Bitcoin for its anonymous transactions. This didn’t do much for its reputation in the eyes of the law, but it raked in an absolute fortune for founder Ulbricht, who took a cut of each deal (making him an estimated $80 million).
New version releaseBitcoin version 0.3.21 arrives, which includes plug and play support, and support for full-precision Bitcoin amounts.
Hey Satoshi - where’d you go?Remember the mysterious Satoshi Nakamoto who created this whole crazy thing? Well in April 2011 he pretty much vanishes, setting in motion the biggest mystery of the Bitcoin universe.
On April 23 he sent (or at least, it looks like he sent) an email to Bitcoin Core developer Mike Hearn, saying that he planned to step back. “I've moved on to other things. It's in good hands with Gavin and everyone,” it said. And… that was it. No more Satoshi. But the question of who he *might have been* has bugged everyone ever since.
Mainstream media makes its moveBitcoin magnate Jerry Brito debuts Bitcoin into mainstream media with an article for Time on the impact the cryptocurrency could have on governments. Basically, by removing the need for a third-party intermediary, Bitcoin allows people to spend their money where they want, without government oversight or approval. In the wake of the Wikileaks scandal (when the US Government allegedly pressured payment providers such as PayPal to freeze funding to the site) this ideological freedom was becoming increasingly important.
The very same day, Bitcoin surpassed $1 again, hitting $1.05.
Greenback parityBitcoin reaches US$1, hits the headlines for all the right reasons. 📰🗞️ Sadly, it falls back down below the line pretty quickly.
Pricecheck: If you’d bought $100 of Bitcoin on February 9, 2011, by February 9, 2020 you’d have had $974,700. That’s enough to buy a super rare copy of the legendary 1941 edition of All-Star Comics #8 – the first one ever to feature Wonder Woman 🦸🏻♀
Bitcoin reaches US$1, hits the headlines for all the right reasons. Photo: NeONBRAND / Unsplash
The road to hell is paved with… silk?The infamous Silk Road website is launched on January 2 by one Mr Ross Ulbricht, who wanted to create a lawless darkweb location where people could buy and sell whatever they wanted with no trace. Bitcoin is an obvious choice of currency.
BTC was trading at about $0.30.
Bitcoin economy tops $1mIt might be slow, but it’s growing. On November 6, the total market cap of Bitcoin tops $1 million for the first time ever.
It was calculated by multiplying the total number of Bitcoins in circulation with the price of the last trade of the day on MtGox, valued at $0.50.
Security gaps start to showThe crypto-novelty is starting to wear off and people are starting to look for ways to exploit the system. Creating 92 billion Bitcoins out of thin air is one way to do it.
Given that there’s a limit of 21 million Bitcoins in total that can in theory ever be mined, the massive influx came as a bit of a shock. Bitcoin developer Jeff Garzik first raised the issue on the Bitcointalk.com forum, mildly pointing out that: “The "value out" in this block #74638 is quite strange.” His observation would come to be regarded as pretty much the understatement of the year.
Basically, someone managed to exploit a flaw in the code (a bug known as a “number overflow error”) that meant they could flood it with an insanely large quantity of bitcoin. It wasn’t exactly fake money, but it sure as hell wasn’t real, and the community went crazy. Amazingly however, they managed to fix it within just five hours - by resetting the blockchain to the last point before the bad transaction, and voiding everything that had been created since. It was a quick fix, but it worked. Which is lucky, because according to Bitcoin Core lead developer Wladimir Van Der Laan, “It was the worst problem ever.”
Bitcoin v0.3 hits the shelvesIt’s time for an update, and in July the third version of the cryptocurrency is unveiled.
It included a host of new updates including translations into German, Dutch, and Italian. It was also, notably, the first upgrade that wasn’t signed off by Satoshi Nakamoto himself. A sign of things to come…?
The following week the price of Bitcoin jumped tenfold, from $0.008 on July 12 to $0.08 on July 17. And on July 17, notorious crypto exchange Mt. Gox opened its (metaphorical) doors for the first time. More on that later.
Pizza partyThe first Bitcoin purchase ever. Programmer Laszlo Hanyecz buys two Papa John’s (PZZA) pizzas for 10,000 Bitcoins (worth about $30 at the time) through an exchange on the Bitcointalk chat forum.
Fast forward a decade and in May 2020, 10,000 Bitcoins would have been worth about $92.7 million. That’s more than 6 million Papa John’s (PZZA) pizzas at $15 a pizza – enough to feed the entire population of Ireland 🍕
In February 2018, Hanyecz got hungry again. He bought two pizzas from a friend in London through the Lightning Network (a payment channel designed to keep transaction fees low). They were delivered to him in Florida for a mere BTC0.00649 (about $67 back then). He said at the time he just wanted to prove that the currency could still be used for real world purchases. Anyone else feeling hungry?
Bitcoin exchange 1.0The idea for the first official cryptocurrency exchange, Bitcoin Market, is born.
Bitcoinmarket.com started with a proposal on a Bitcoin forum (where else?), back when Bitcoin was trading at about $0.05. By the time it launched in March 2010, one single Bitcoin was worth about $0.03. Oh, how we wish we’d invested back then.
Bitcoin v0.2 releasedVersion 0.1 of Bitcoin was first released on January 5, 2009 – but it would go through multiple incarnations, starting with Bitcoin Version 0.2 on December 17, 2009.
The new version was available to download on both Windows and Linux, and came with a bunch of new features including multi-processor support, and “an autostart on boot option” so that miners could keep it running in the background automatically.
Satoshi also announced the launch of a new forum at bitcoin.org/smf/. A few weeks later, on December 30, the first difficulty increase occurs (when the system makes it harder for miners to achieve block rewards, in order to limit supply).
First ever exchange rateThe first ever BTC/USD exchange rate is launched by pro-Crypto website New Liberty Standard (run by a Bitcoin developer of the same name, who was instrumental in developing the Linux version of the system.) The site sets the rate of one Bitcoin at $0.0007 on October 5, 2009.
It was the first source to price Bitcoins based on the electricity cost it took to mine them, and it was the first to offer a daily price. It wouldn’t be the last.
In case you’re interested, during 2009 the exchange rate was calculated by dividing $1 by the average amount of electricity required to run a computer with high CPU for a year (1331.5 kW), multiplied by the the average residential cost of electricity in the U.S. for the previous year, ($0.1136), divided by 12 months, divided by the number of Bitcoins generated by the site owner’s computer over the past 30 days.
Bitcoin is born - but who’s the father?Oh Bitcoin, where do we begin with you? The leader in the decade-long rise of cryptocurrency, Bitcoin has changed how global markets work, and made a load of people super rich along the way (and, for a few unlucky ones, significantly poorer too). Little wonder it's one of the most popular symbols on TradingView.
The most famous cryptocurrency in the world kicked off on January 3, 2009 with the mining of the genesis block (Block 0), which created 50 Bitcoins. On January 9, Version 0.1 of Bitcoin was officially released, including the generation system that limits the blockchain to the creation of 21 million Bitcoins by 2040. It was a pretty simple outline, tbh.
But the big question is not how, it’s who. The simple answer is: some guy called Satoshi Nakamoto. But damn, it gets way more complicated than that.
Satoshi Nakamoto was certainly the name on the white paper that first introduced Bitcoin to the world back in 2008. He’s the guy who registered the first Bitcoin.org website, the guy who mined the first ever Bitcoin block (and hid a secret line of text in it poking fun at normal banks), the guy who wrote and modified all the source code for the first couple of years. He’s the guy who did the first ever transaction on January 12, sending 10 Bitcoins from Block 170 to developer Hal Finney. He’s the king of cryptocurrency, the big enchilada. But is he real?
Sorry to disappoint you but probably not. Although his online profile (back in 2012) claimed to be a 37 year old nerd living in Japan, there’s a whole bunch of evidence to suggest that ‘Satoshi Nakamoto’ was actually a fake name – and finding the “real” Satoshi has become the Holy Grail of the Bitcoin universe. From space aliens to a reincarnation of Scientology fantasist Ron L. Hubbard time travelling agent from the future (yes, there’s a Reddit on it), a time travelling agent from the future, to CIA operatives, everyone has an opinion. One journalist thinks he’s Elon Musk. Another has suggested notorious drug dealer Paul Le Roux. Some people think he’s British, because he uses British words and often posted in what seemed to be a UK timezone.
Most people, however, seem to think it’s one of the original in-crowd of Bitcoin developers. Maybe Gavin Andresen, the guy who Nakamoto apparently “handed over” the source code to back in 2010 before he mysteriously disappeared. Or Nick Szabo, the flamboyant founder of Bit Gold (BTGUSD), an early precursor to Bitcoin. There have been multiple pretenders to the crown over the years, but so far they’ve all fallen by the wayside – some more heavily than others. With over a million Bitcoins still sitting in Satoshi’s personal wallets (which would make him one of the top 50 richest men in the world) there’s a BIG incentive to reappear – but if he exists, and he’s alive, he ain’t budging. To this day, Satoshi’s identity is still the biggest mystery of Bitcoin 🧐
The Genesis Block message: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."