While altcoins bleed, Bitcoin moves in on $40K
Bitcoin is bouncing back. The crypto king has reclaimed its throne, and is closing in on $40K as the altcoin market stagnates.
El Salvador’s approval of Bitcoin as legal tender on Thursday could be credited with the turnaround, boosting market sentiment and sparking a wave of interest from politicians across Latin America. Then on Sunday, Twitter trickster Elon Musk aided the recovery, claiming once again that “Tesla only sold around 10% of holdings to test liquidity” and that the car company will allow Bitcoin transactions again when miners have improved their green credentials.
Trailing behind, little brother Litecoin is one of the only altcoin winners of the week with 5% gains. Ethereum is down 3%, and DeFi tokens Chainlink and Uniswap are making a slow recovery with 4% weekly losses.
This Week’s Highlights
- Latin American leaders get laser eyes
- Global banking regulator calls for new crypto rules
Latin American leaders get laser eyes
El Salvador’s announcement that it will make Bitcoin legal tender seems to have started a trend.
A handful of politicians in neighboring countries — from Panama to Paraguay — have added laser eyes to their Twitter profiles to show support for Bitcoin initiatives that could help their nations attract technology startups.
In the U.S., Texas Governor Greg Abbott signed a law this week that gives state-chartered banks the greenlight to custody crypto assets. This rising acceptance runs against comments from Senator Elizabeth Warren, who recently lambasted Bitcoin for the supposed environmental cost.
Global banking regulator calls for new crypto rules
Bitcoin prices were bolstered mid-week by an announcement from the Basel Committee of the Bank for International Settlements.
The global regulator, which sets international banking standards, proposed the first ever set of rules for banks to hold crypto; suggesting strict capital requirements to accommodate the risks of volatility.
Bitcoin jumped $2K on the news, reflecting excitement about the broader acceptance of cryptoassets in the traditional financial ecosystem.
The week ahead
The sudden upswing could indicate that Bitcoin is ready to cast off the shackles of the recent sideways trend.
Yet the market sentiment indicator is still flashing fear, and some American bookmakers are now putting the odds for Bitcoin dropping to $10K this year at almost 60%.
This week, MicroStrategy CEO Michael Saylor is expected to be hitting the Bitcoin buy button after raising another $500M in convertible notes.