Bitcoin is once again on the ascendency, having seen a 17 per cent price rise since Tuesday’s flash crash.
The cryptocurrency was boosted by news from El Salvador that it will be recognised as legal tender in the Central American country, with other countries in the region giving hints that they might follow suit.
The bounce back of bitcoin has had a knock-on effect across the whole crypto space, with Ethereum (ether), dogecoin, Cardano (ada) and other leading cryptocurrencies all seeing gains on Wednesday.
There appears to be positive momentum on Thursday, though the market still appears to be hanging in the balance.
Analysts and experts are divided over whether the latest jump will put bitcoin back on its record-breaking run that it has enjoyed so far in 2021, or whether it is just a blip on the way to more losses.
You can follow all the latest news, analysis and price predictions right here.
Iran looks to legalise crypto ‘as soon as possible’
The president of Iran has become the latest world leader to propose a legal framework for cryptocurrencies.
President Hassan Rouhani told the government’s Economic Coordination Board that there should be cooperation between “agencies in the field of capital markets” and people within “the field of information, education and public awareness”.
According to his official website, President Rouhani said: “For legalizing the activity of cryptocurrencies and protecting people’s capital in this area, we must think of a solution as soon as possible and lay down and communicate the necessary laws and instructions.”
Iranian President Hassan Rouhani pictured in April 2021
Anthony Cuthbertson10 June 2021 16:42
State Street bank launches crypto division
State Street, the second oldest bank in the US, has announced plans to launch a “multi-asset platform” that will support cryptocurrency trading.
The custody bank, which oversees more than $40 trillion in assets, said the move was driven by customer demand.
“We are at a tipping point now where this is moving fast,” Nadine Chakar, who will head State Street Digital, told the Financial Times.
“We are getting calls from endowments and foundations that are getting donations in crypto and saying ‘what do we do with this?’ We are seeing companies that are thinking of adding crypto to their balance sheets.”
Anthony Cuthbertson10 June 2021 15:21
Bitcoin price jumps $2k after global banking regulator’s proposal
Bitcoin has been formally recognised as an asset class by the Basel Committee, the arbiter of international banking standards, by proposing rules for banks to hold the cryptocurrency.
The rules will also apply to other leading cryptocurrencies like Ethereum (ether), with all of them being placed in the high risk category.
Bitcoin saw an immediate jump in price of $2,000, further boosting an already buoyant crypto market. It marks yet another major milestone for bitcoin into the world of traditional finance.
And the Basel Committee’s press release here:
Anthony Cuthbertson10 June 2021 13:24
$160bn asset management firm enters crypto market
Yet another multi-billion dollar asset management company has announced plans to enter the cryptocurrency space.
Victory Capital, which manages nearly $160 billion in assets, established exclusive agreements with Nasdaq and crypto-focussed asset manager Hashdex in order to launch a private fund for accredited investors that will track the Nasdaq Crypto Index (NCI).
“We continually strive to provide our clients with the forward-thinking choices they want and believe cryptocurrency is a viable asset class that can be part of a well-diversified portfolio,” said Mannik Dhillon, CFA, CAIA, President, VictoryShares and Solutions.
“By investing in a portfolio designed to track the NCI, investors can seek returns that align with the cryptocurrency market in a diversified manner, gaining exposure to multiple digital assets as this market continues to evolve and mature. We are actively considering other vehicles and wrappers to bring these capabilities to a broader set of investors.”
Bitcoin has rebounded in price in June 2021 following positive news in the crypto space
Anthony Cuthbertson10 June 2021 11:31
El Salvador president plans 100% green bitcoin mining
More positive news coming out of El Salvador this morning, this time relating to bitcoin’s environmental impact.
President Nayib Bukele has instructed the head of the country’s state-owned geothermal electricity company to offer facilities for bitcoin mining, to allow the cryptocurrency to be created using 100 per cent renewable energy.
“This is going to evolve fast!” he tweeted.
Engineers are reportedly already working on designs for the project, while mining firms appear to be keen to offer any help they can in setting up rigs.
Anthony Cuthbertson10 June 2021 09:18
Dogecoin founder asks new GameStop chairman to accept crypto
One of the co-founders of dogecoin has asked the new chairman of fellow meme asset GameStop to begin his new tenure by accepting payments in the cryptocurrency.
Billy Markus tweeted new GME boss Ryan Cohen to “plz add dogecoin to purchase stuff online”.
GameStop’s share price rose sharply following the announcement of Cohen’s new tenure, and is once again approaching the record highs it reached in January this year. The price of dogecoin also rose by around 10 per cent in the hours after the news, though this may also be a reflection of bitcoin’s recovery.
Anthony Cuthbertson9 June 2021 20:18
Could other countries follow El Salvador?
El Salvador may be the first to adopt bitcoin, but many are betting that it won’t be the last.
Several other countries in Latin America could soon follow suit, with politicians in Argentina, Brazil, Mexico, Panama and Paraguay all expressing an interest in the cryptocurrency.
There are numerous obvious benefits to formally recognising bitcoin as legal tender, such as slowing inflation, enticing crypto entrepreneurs, and increasing financial inclusion of those forgotten by the formal economy. But there are also some risks that come with it – not least incurring the wrath of the US.
You can read the full story here:
Anthony Cuthbertson9 June 2021 17:33
Bitcoin price back above $35,000
The price of bitcoin has just crossed back above the $35,000 mark, up nearly $5,000 since yesterday’s lows.
The cryptocurrency is still down by around 6 per cent, week-on-week, but it represents a solid bounce back from the flash crash that hit the whole market at the…