In an explosive market recovery, Bitcoin has blasted past $38K to make over 25% weekly gains.
The bearish mood began to shift on Wednesday, when Elon Musk appeared at the “The B Word” conference and made clear that he has not lost his affection for Bitcoin. Then on Friday, news that Amazon is hiring a blockchain expert helped push prices even higher.
In the face of such bullish strength, concerns about impending regulation were shrugged off, and rising prices were seen across the crypto market. Layer 2 solution Polygon led the way with 45% gains, Stellar surged 30% on rumors that the Stellar Foundation is acquiring MoneyGram, and Ethereum celebrated equally large gains.
This Week’s Highlights
- Elon Musk boosts market recovery
- Amazon makes move on digital currency
Elon Musk boosts market recovery
On Wednesday, three of the biggest names in crypto — Elon Musk, Cathie Wood, and Jack Dorsey — sat down for a roundtable discussion that helped shift market sentiment in favor of the bulls.
Most significantly, Musk acknowledged that Bitcoin mining is moving towards renewable energy, and said Tesla will “most likely” accept the cryptoasset as payment again in future. Furthermore, the self-proclaimed technoking revealed that both SpaceX and Tesla hold Bitcoin, and that he personally owns Bitcoin, Dogecoin and Ethereum.
Not to be outdone, Twitter CEO Jack Dorsey said that Bitcoin will be a “big part” of his own company’s future, helping to drive gains across the crypto market.
Week ahead
After such an explosive reversal, traders will be watching closely to see if the move could mark a turning point away from the falling prices of recent weeks.
Helping the bullish case, Ethereum’s London hard fork, which will usher in the highly-anticipated Ethereum Improvement Proposal (EIP) 1559 upgrade, is scheduled for August 4th.
On Wednesday however, we could see more bearish news as the Senate Banking Committee’s subcommittee on economic policy is expected to respond to U.S. senator Elizabeth Warren to address her concerns about the risks of investing in cryptoassets.