Crypto News: Bitcoin Price Moves, Hedge Funds Plan to Allocate Assets to Crypto, and General Motors May Accept Bitcoin
Today we cover Bitcoin’s massive 14% pump in price to start the week and discuss why it happened. We also go over the rising interest in institutional investing that might just reach another level in the next five years. It seems as though retail investors are already on top of that information because new data shows that they are HODLing. All of that and more is coming at you right here.
Seeing 30% to 40% swings in the value of your crypto assets is pretty commonplace, but then again, perhaps the bull run that has dominated both the cryptocurrency over the past year has you a little too comfortable in your positions. Either way, the crypto market is bound to cool off at least for a little while. In this post, you’ll realize that not much has changed in terms of the fundamental value of crypto’s top projects. Now, let’s dive into why crypto prices have been so choppy lately.
President Bukele’s decision to make bitcoin a legal currency in El Salvador is big news for broader adoption. It also points to the fact that many developing nations around the world can no longer fully depend on the traditional financial system. Plus, crypto prices nosedive, and Vitalik Buterin made a $4 million profit on Dogecoin. Learn more in this week’s news roundup.
Yesterday the Federal Reserve held a live press conference. The U.S. and the rest of the world tuned in anxiously to see what Chairman of the Fed, Jerome Powell, had to say. Many were flabbergasted by his statements while others expected nothing less. We were reminded how malleable monetary policies are in the traditional financial system and how precarious it can be to store wealth in it.
The world witnessed the first country, El Salvador, accept bitcoin as legal tender thanks to President Nayib Bukele. In over a decade we have gone from critics proudly shouting “no one will ever use bitcoin” to small countries now adopting it. This cannot be underestimated. We may see more countries in Latin America following suit.
Given the frenzy that we are living through, it makes sense that many believe once Bitcoin and Ethereum end their respective bull runs, capital will flow into altcoins like we’ve never seen before. This begs the question: is it really worth diversifying your portfolio and going beyond Bitcoin and Ethereum?