After nearly two months of sideways selling pressure in the crypto market, we saw a timely green reprieve this week. The big question on everyone’s mind–has a longer-term bear market set in or is this the short-term sell-off before crypto defies gravity and shoots for the moon in late 2021?
This week, The B Word digital conference took place with impressive key speakers such as established Bitcoin and crypto bull Cathie Wood of Ark Invest, Tesla and SpaceX CEO Elon Musk, and Twitter CEO Jack Dorsey.
A notable presentation that drew attention was that of Nic Carter, Co-Founder of Coin Metrics, who clarified Bitcoin’s environmental impact. Carter stated that, based on recent reports from the Bitcoin Mining Council, Bitcoin mining is now 56% powered by renewable energy.
While the event, in part, seemed to be a public effort to resolve Elon Musk’s past vocal concerns on Bitcoin and its environmental impact, as a whole, it helped restore sentiment in the crypto market. Sentiment can change on a dime in crypto, mirroring the volatility of the asset class itself. Investors can go from bearish to bullish in a matter of minutes, often spurred by data as minuscule as a tweet.
At the conference, Elon highlighted the migration of miners from China which reduced BTC mining dependency on dirty coal plants and could be seen as making necessary progress toward clean crypto.
As targeted sustainability goals come to fruition, Tesla will at some point resume accepting Bitcoin payments. While many in crypto took aim at Elon’s past comments, you can’t disregard the exponential acceleration of Bitcoin moving toward renewable energy because of this public debate.
Elon also revealed that SpaceX owns Bitcoin, and that his personal crypto profile encapsulates Bitcoin, Ethereum and Dogecoin. Some great ideas were also shared, including Twitter accepting Bitcoin for advertising payments, and Elon including Bitcoin mining tools in Starlink satellites.
In a moment of full transparency, Elon mentioned that the European banks holding money on behalf of his companies have negative interest rates, motivating him to move those funds into Bitcoin. This tracks, especially when one looks at recent data on public crypto adoption. In recent surveys conducted by Voyager, the abysmal interest rates of banks, paired with concerns of systemic inflation, are why so many users are moving into crypto and staking on Voyager to earn interest.
This theme is becoming all too common. Major banks and institutions express hesitation or caution toward crypto, while at the same time continuing to implement crypto into their future financial strategy.
In fact, this week it was announced that JP Morgan’s clients now have the green light to invest in crypto. “JPMorgan clients now reportedly have access to the Grayscale Investments’ Grayscale Bitcoin Trust, Bitcoin Cash Trust, Ethereum Trust and Ethereum Classic Trust, as well as Osprey Funds’ over-the-counter Bitcoin trust, Osprey Bitcoin Trust. Investors may request advisers execute crypto trades, but the bank’s advisers may not be allowed to recommend crypto investments.” (CoinTelegraph)
JP Morgan’s CEO Jamie Dimon has expressed distrust in the crypto industry before, but now their $630 billion wealth fund can accept crypto orders. (Forbes) Something to think about.
According to a recent Goldman Sachs report, over 45% of ultra-rich family offices are interested in investing large sums of money into crypto. If they are expressing interest now, you can bet your bottom Bitcoin that many of them have already been investing for some time. (Bloomberg)
It’s not just banks and family offices. This week, legendary rapper Busta Rhymes even announced he’s holding Bitcoin. While crypto’s volatility can shake some up in the short-term, its long-term future is becoming more and more certain, and everyone wants a piece of the action.
When it comes to the next major leap of innovation, Bitcoin and the crypto industry are the green light at the end of the tunnel.
Top market movers as of July 23, 2021
- Dash (DASH) +21%
- SushiSwap (SUSHI) +18%
- Terra (LUNA) +13%
- AAVE (AAVE) +11%
Cointelegraph > "Bitcoin is key to the future of Twitter, Jack Dorsey says"
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