Last Week In Bitcoin is a series discussing the events of the previous week that occurred in the Bitcoin industry, covering all the important news and analysis.
Summary
It’s been quite the week for bitcoin. Elon Musk revealed that SpaceX, in addition to Tesla and himself, holds bitcoin with no imminent plans to sell. Jack Dorsey pushed a bitcoin positive agenda onto Twitter shareholders, recommending an “aggressive” approach to investing in bitcoin. Besides a lot of other news, the week ended with reports that Amazon would accept bitcoin payments before the end of the year, sending bitcoin on a run toward $40,000. All in all, not a bad week for HODLers.
Highlights
Besides bullish market sentiments, there are more than enough movements in the market to indicate an upward breakout is coming. Besides El Salvador beginning its nationwide rollout of bitcoin in September 2021, there is Tesla likely accepting bitcoin for payments again; Twitter and other companies’ “aggressive” investment in bitcoin; and rumors of both Amazon being interested in either accepting bitcoin payments or investing in it outright.
Overall, it is likely that bitcoin’s current trajectory should follow the same path as in November and December 2020 given current developments. If that does in fact happen, bitcoin could very well breach $100,000 sometime in the fourth quarter of 2021, which means Christmas is coming early for hardcore HODLers and those who bought recent dips.
Bullish News
Let’s start with the bullish reports that pushed bitcoin to $40,000 over the last few days.
Amazon seems to be interested in integrating bitcoin payments into their platform, you know the global marketplace with over 310 million users worldwide. Should this pan out, and Amazon starts accepting payment in bitcoin, the market will react very favorably if rumors were able to push the surge on Sunday.
Bitcoin warlock Jack Dorsey also indicated to Twitter shareholders that the company should “invest aggressively” in bitcoin. Interestingly, Dorsey repeatedly avoided Elon Musk’s questions about Twitter integrating bitcoin into its platform during The B Word earlier in the week which featured Dorsey, Musk and Cathie Woods.
Speaking of The B Word, during the discussion, Elon Musk made two important statements. The first was confirming that SpaceX holds bitcoin on its balance sheet, in addition to Tesla and Musk himself. The second was that, although he “pumps” the market, he would never “dump,” leading many to take that as an admission that neither he nor his companies intend to sell any of their bitcoin holdings. With Musk’s epic trolling over the last few months, this was about as bullish as anything that comes out of his mouth.
Finally on the bullish front, there’s FTX’s recent funding round in which the global exchange raised $900 million in funding, the largest ever for a crypto exchange, leading to an $18 billion valuation and reaffirming that interest from large investors in the crypto space is as high as ever. Bullish indeed.
Bearish News
Last week, the European Commission proposed a law to KYC all transactions involving digital currencies in the European Union. If passed, this could very well negatively affect wallet manufacturers such as Ledger and Trezor, both of which are based in Europe. Although bearish in the long run, there are still some hurdles to clear for the law and it may not end up being passed.
Luckily for us, there is relatively little bearish news from the week otherwise. Let’s hope it stays that way.
Verdict
Once again, I am still hyped on bitcoin’s future. In terms of fiat pricing, it’s going up over the next few months and will likely be fueled further with high inflation rates in the U.S. and U.K., further adoption by large corporations and an overall change in market sentiment.
I firmly believe we’re in for a wild week in the coming days as the recent surge will either see a decent correction, or push bitcoin past the $40,000 resistance and back up in the mid 40s. Of course, nothing is set in stone and if you’ve been in the market for only a short while, its volatility and uncertainty can be a cause for concern.
Hardcore HODLers and true bitcoin believers will agree that the way to approach bitcoin is with a long-term view. Short-term fluctuations are common, but, of course, had you bought bitcoin anytime in the 11 years leading up to 2021, your stack would be nice and deep in the green right now.
Many would agree with me that we are still in the early days of bitcoin. So far only one of the 195 countries worldwide has adopted bitcoin and we’re still 119 years from the last bitcoin being mined. There are millions of companies that have yet to embrace the beauty that is bitcoin and billions of people to do the same.
This is a guest post by Dion Guillaume. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.