Last Week In Bitcoin is a series that discusses the previous week’s events in the Bitcoin industry and covers all the major news and analysis.
Summary of the week
Just a month ago, Bitcoin was hovering below $ 30,000, and many were expecting another dump. But if you had bought the dip you would have already risen over 60%, with Bitcoin breaking USD 50,000 on Sunday and trading at levels last seen in mid-May. Can we expect Bitcoin to hit its recent all-time high of just over $ 64,000 with a surge of over 60% last month?
Perhaps unsurprisingly, the past week has been full of optimistic news as more institutional investors come on board, banks pave the way for Bitcoin rollout, and legendary investors jump on the Bitcoin bandwagon (or confirm they are all along were there). . Let’s take a look at the past week in Bitcoin.
Bitcoin timeline this week
Bullish financial services news
❶ In order not to be left behind, the global retail giant Walmart published a job advertisement for a “product manager for digital currencies and cryptocurrencies” on Monday. Walmart is following in the footsteps of other retail giants like Amazon and appears to be preparing to explore the adoption of Bitcoin and other cryptocurrencies. Given the size of the company, Walmart recorded nearly $ 560 billion in revenue during a global pandemic last fiscal year. The extent to which they operate could dramatically increase the bitcoin network should they allow bitcoin payments.
❷ Also on Monday, Jehudi Castro Sierre, an advisor to the Colombian President, described Bitcoin as “the most brilliant software ever,” leading many to speculate that the South American nation might use Bitcoin as either legal tender or an investment, similar to El Salvador. Nothing of the sort has been announced or even rumored, but the markets like to speculate.
❸ On Tuesday it was announced that the UK’s largest retail bank, Lloyds Banking Group, was hiring a “Digital Currency Manager”. The bank has over 30 million customers in the UK and appears interested in offering services specifically tailored to the increased demand for crypto and bitcoin.
❹ Also on Tuesday, Fidelity, one of the largest financial services companies that manages $ 10 trillion in assets, said Bitcoin is now a major focus for them as it becomes a real asset class, revealing that 90% of the Fidelity’s biggest customers ask about Bitcoin.
❺ It was announced on Wednesday that Palantir Technologies, the company of billionaire Peter Thiel, is now accepting Bitcoin. Thiel has welcomed Bitcoin as a hedge against fiat currency inflation but warned that “you need to be prepared for a future with more black swan events”.
❻ Also on Wednesday, legendary investor Bill Miller announced that he has been buying Bitcoin since it cost $ 200. The 71-year-old investor has been investing heavily in software this year, announcing that he has acquired a stake in Coinbase, and appears to remain bullish on Bitcoin.
❼ Thursday was a busy day for bullish news as Mitsubishi UFJ Financial Group (MUFG), Japan’s largest bank, closed a deal with Coinbase that will allow its 40 million customers to buy Bitcoin. Japan has one of the highest Bitcoin trading volumes in the world and the government has been very open to cryptocurrencies.
❽ Also on Thursday, banking giants Wells Fargo and JP Morgan applied for private Bitcoin funds. Both institutions have been against Bitcoin in the past, but it has become an asset that is hard to ignore. Their pursuit of Bitcoin-based products has undoubtedly been partly influenced by customer demand.
❾ To conclude Thursday’s bullish news, payment giant Worldline has teamed up with Bitcoin Suisse to enable 85,000 merchants in Switzerland to accept Bitcoin and pave the way for wider adoption in the country of over 8.5 million people.
Finally, on Friday, the world’s largest wealth manager BlackRock announced that it was pursuing investments in Bitcoin mining and was joining Fidelity and Vanguard. The company invested over $ 382 million in shares of Marathon Digital Holdings and Riot Blockchain.
Bear FUD and criminals
Just because nothing made the headlines doesn’t mean there hasn’t been any negativity towards Bitcoin in the past week. Jake Klein, executive chairman of Australian gold mining company Evolution Mining, made some misguided claims, saying that Bitcoin’s volatility will drive investors back to gold.
Criminals were also in the spotlight last week when Helix operator Larry Dean Harmon forfeited 4,400 BTC to the US Department of Justice as part of a guilty confession of money laundering. The Swedish government was also forced to pay 33 BTC to an imprisoned drug dealer after he sold his inventory when he was arrested. This is likely to continue the “crypto is for criminals” narrative falsely promoted by many.
Then there is the ongoing FUD on the government’s impact of bitcoin mining. This week Fortune published an article on how Bitcoin mining carbon emissions will exceed Mexico or Brazil’s if Bitcoin hits $ 500,000, but doesn’t believe the incentive for greener mining operations will increase will be the higher the bitcoins go. Pieces like this continue to advance the narrative that Bitcoin cannot, or indeed will not, “go green” if the opposite is the case.
Overall, it’s good that the bearish news is slowly disappearing on the so-called “backsides”, but there still seems to be pressure from the traditional media to find negative angles or negative voices to provide a platform.
A bullish verdict
I’ve been saying for weeks that Bitcoin is overdue for a breakout, and last month’s uptrend confirms that Bitcoin is ready to start a new run. The past week has been overwhelmingly bullish, even if the price wasn’t exactly “moon”. More and more banks, institutional investors and others are joining the fight. Bitcoin is becoming undeniable as a solid investment, and given the ongoing effects of the COVID-19 pandemic, it is undeniable that the global economy will continue to suffer for a few years to come.
Bitcoin excels as a hedge against inflation, and as money printers continue to run at full speed around the world, it is becoming an increasingly important investment vehicle for those looking to rise above the so-called financial tyranny of the fiat currency system.
This is a guest post by Dion Guillaume. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.