Elon Musk manipulates the crypto markets, JP Morgan proposes Bitcoin as a hedge and Coinbase trades Bitcoin itself? Those stories and more this week in crypto.
Guess what happened after Elon Musk tweeted that cryptocurrencies were “too high”? The prices fell abruptly! During the week, the price of Bitcoin fell more than 20% and it looks like Musk’s company Tesla has also seen a serious decline. Analysts argue that beyond Musk’s tweet, the decline was inevitable due to the overly indebted long market and Wall Street crash this week. In contrast, Musk did wonders for Dogecoin: after tweeting a picture of the currency’s mascot, the price of DOGE rose more than 25 percent.
Square – Twitter CEO Jack Dorsey’s payment processing company – has also purchased $ 170 million worth of Bitcoin. This marks the second major BTC purchase for the company in the past six months, as Square first bought the leading digital asset valued at around $ 50 million last October.
It looks like Crypto Exchange Coinbase doesn’t just allow you to conduct transactions. It also tries to act on its own. Documents filed for Coinbase’s new listing found that the company has approximately $ 316 million of digital assets that it has bought and traded over the years.
JP Morgan has endorsed the statement that investors should invest 1% of their portfolio in BTC as a hedge. This has been claimed by investment bank strategists as more and more people add fuel to merit that Bitcoin could protect assets from the inflating fiat currencies.
A Dubai-based cryptocurrency mutual fund with more than $ 1 billion in assets under management expects the value of Polkadot and Cardano to outperform BTC in the years to come. It has announced it will sell $ 750 million of its Bitcoin to increase the company’s positions in Cardano’s ADA and Polkadot DOT tokens.
The tourism industry in Madrid, Spain has unveiled a new cryptocurrency that travelers can use to pay for hotel stays and other expenses during their trips to the country’s capital. The currency, known as the Helysia token, was introduced by the Madrid City Council and is currently worth more than 2 euros.
This week’s slump in Bitcoin prices has devastated the Grayscale Bitcoin Trust. The company’s shares have fallen more than the Bitcoin slump. Investors have been selling shares in the Grayscale Trust so fast in the past few days that the share price fell into discount territory after trading at premiums above 15% for most of January.
This is exactly what happened in Crypto this week. Until next week.
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