The world’s most heavily capitalised digital asset, Bitcoin, celebrated its 13th birthday last week, but the cryptocurrency market’s mood has been far from “celebratory,” despite all that Bitcoin has achieved since it was launched in 2009.   January 8th marked the seventh-straight day in a row that the digital asset’s value trended lower – Not since 2018 has there been such a steady decline.

Last year, while crypto-enthusiasts were applauding the digital assets market for finally achieving “mainstream adoption,” a crucial inflection point, other cryptocurrency analysts were trying to warn investors that the fever pitch and accelerated values may trigger a late year sell-off.  They were right. 

How did we get here?  As Bitcoin slips toward the psychological floor of $40K, crypto-investors are anxiously looking for any credible news or trends to suggest that the current market sell-off could finally be ending. 

Let’s all take a collective breath as we consider some important facts.

First, the month of January _always_ seems to spook investors with sudden dips.  This historically creates a domino effect that chases the newer investors out of the market, and it appears that 2022 will be more of the same.  Yes, this sell-off has been especially disconcerting as Bitcoin has shed 10% of its value in the first ten days of 2022, but a closer look at the market players reveals some answers. 

If one considers the role the Federal Reserve has had to play in all this, especially their reaction to the pandemic, the sell-off becomes less of a mystery.  During the pandemic, the Fed was very lenient on the economy and even went so far as to inject over $4 trillion into the economy.  It was a move to support the global marketplace while the world’s employers struggled to find a way to stay in business with much of their workforce needing (or wanting) to work remotely.  Now, as the world’s economies begin to stabilize, the Fed is starting to give signals that it may be thinking about taking some new steps to minimize the rate of inflation - rates that are now at their highest level in forty years.

A simple review of the minutes from last week’s Federal Reserve meeting served to only further fan those flames.  Word began to spread across the media channels, and the rout was on. 

It’s also worth noting that most investors still categorize cryptocurrencies as “high risk” investments.  In so doing, the cryptocurrency market will continue to react with _sell orders_ whenever the Fed hints at tempering the market like it did last week.  So, the big question becomes, especially for the investors who piled into the market late last year, when does this carnage end? 

As of this weekend, Bitcoin was down 35% from the all-time high, but some influential players are sensing better days are ahead.  Are they correct?  The price of Bitcoin is continuing to edge closer to the $39,570 mark.  That’s approximately where Bitcoin’s price hit a floor in September 2021, before going on an upward tear.

In fact, a strategist from Bloomberg made comments earlier suggesting that Bitcoin could _outperform_ traditional stocks in 2022, especially if any moves are made by the Fed to raise interest rates.  The strategist stated: “Cryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed’s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.”

Remember, the technology behind these digital assets is still very new to the mainstream public, and there was a lot of FOMO activity that took place in late 2021.  As the market cools, it is establishing a new baseline.  We’ve been here before.

Is it time to pick up some bargains?

Cryptocurrencies Prices Plummet

[Bitcoin](/coins/btc) traders and investors continued to hold their breath today as the price of the world’s number one digital asset continued to fall.

At time of press, Bitcoin is trading at $42,406 representing a drop of 1.11% in the last 24 hours. The total market cap for the entire crypto industry stands at just over $2 trillion, a fall of just 0.85% over the previous day. Is this anything to worry about? What has caused this drawback? Lets take a closer look.

**November Bitcoin Highs**
--------------------------

To many, the cryptocurrency market has never been healthier. Many large scale companies such as Tesla have Bitcoin investments on their balances sheets while 2021 finally saw the emergence of a Bitcoin futures ETF. Rumour has it that there are many institutions poised to make significant crypto investment through 2022 yet the prices of the major cryptocurrencies have been falling since the highs of November 2021.

As the charts and figures clearly show the price of Bitcoin peaked on November 10th with a price of $68,385. Since then the price has been in free fall however many commentators believed that there was significant buying support around $50,000. Therefore the shock when Bitcoin fell firstly to $45,000 and then more recently this week to $42,000 was audible. However, on a macro scale there doesn’t appear to be anything to worry about.

**Strong Fundamentals**
-----------------------

The understanding and concept of digital assets and distributed ledger networks has never been clearer or stronger than it is going into 2022. With other digital currencies such as Ethereum, Hedera Hashgraph and Link all scheduling upgrades and developments in the first part of the year the industry has never been stronger. However, there is a large percentage of the digital asset market  cap which is made up from speculative investors more familiar with the stock market.

These kind of investors still view cryptocurrencies and digital assets as risk on investments compared to other more stable parts of their portfolio. Therefore, when there are concerning macro economic winds whipping across the financial landscape cryptocurrencies are one of the first assets to be sacrificed. The news of the Federal Reserve plans to tighten monetary policy this week provided the catalysts for much profit taking across both crypto and stocks. 

**Local Bottom for Bitcoin Price?**
-----------------------------------

The question many people are asking is where is the local bottom for Bitcoin? There are some market experts saying that Bitcoin could fall as low as $30,000 although the general consensus is that $40,000 looks like a safe bet.  As we mentioned above the fundamentals for both Bitcoin and cryptocurrency in general have never been stronger so a fall into the $30,000 region seems unlikely. However as we all know anything is possible in this unregulated and burgeoning market place.



Bitcoin Price Feels the Wind of Change

Wouldn’t you know it?  Of all the people in our global community, 2021 was the year that _cryptocurrency users_ received the accolade of being the most charitable investors on the planet.  As society embraces cryptocurrencies on a wider scale, it’s a fact that people are increasingly using digital assets instead of fiat to make donations to their favourite charities. 

United Way Worldwide, the international network of 1,800+ non-profit fundraising affiliates, reported a jaw-dropping 350% increase over the past year in donations that were made using cryptocurrency.  No less impressive, the largest grantmaker in the U.S., Fidelity Charitable, recently reported receiving over $274 million in cryptocurrency donations in 2021.  That’s almost _four times_ the grantmaker’s prior record of $69 million in 2017.

## Crypto-Philanthropy

While crypto-philanthropy may be surging in 2021, it isn’t because the concept is entirely new.  Remember when the cryptocurrency market had its “coming out” party during the 2017-18 bull market and American actor turned celebrity tech investor, Ashton Kutcher, donated crypto on “The Ellen Degeneres Show?”  Or when a philanthropic project called the [Pineapple Fund](https://pineapplefund.org/) was initiated by an anonymous investor who went on to donate more than 5000 Bitcoins to over 50 different charities through the fund?

Tech and crypto wealth are rapidly becoming a big part of global philanthropy.  Now, faith-based organizations, churches, and non-profits are beginning to recognize that, with the proper online platform in place, they can draw in larger donations than regular fiat would alone as crypto expands its role in the rapidly growing online economy.

While the larger and more widely recognisable charities and international “do gooders” like the American Red Cross and Save the Children are already active in providing platforms that allow donors to contribute crypto instead of fiat, smaller organizations are still struggling with how they can set up a similar system to benefit from the recent wave of crypto-philanthropy and are determining if it even makes sense for them to do so.  It’s a compelling question considering that smaller charities make up the majority of registered non-profit's in America. 

## Bitcoin Donations

In 2018, [Engiven](https://engiven.com/) and [The Giving Block](https://thegivingblock.com/) were launched.  These two sites have become the most popular crypto-giving platforms for assisting non-profit's and especially churches in setting up online platforms for making cryptocurrency donations.  This year The Giving Block has said that it expects to facilitate cryptocurrency donations for charities totalling between $100 and $150 million.  This past November, the cryptocurrency donation platform Engiven said it accepted what the company is calling “the largest single Bitcoin donation known to date” which turned out to be a Bitcoin donation made to an undisclosed faith-based organisation totalling $10 million.

How liberating it is for the crypto-community to beat the traditional philanthropists to the top of the “most charitable” list?  But perhaps the better part of the story is how the cryptocurrency market has opened a new way for charities to source their efforts to make the world a better place. 



Crypto Investors Recognised for Charitable Giving

The cryptocurrency market looked shaky again today as crypto traders saw another 24 hours of drawback.

The cryptocurrency market experienced another drawback today as confidence among traders and investors seemed like a distant memory.

At time of press, the value of the entire cryptocurrency market is $2.6 trillion with a drawn down of 1.62% in the last 24 hours. The market has made a slight recovery through the day after bottoming out at $2.09 trillion at 19:40 UTC last night (December 13th). [Bitcoin](/coins/btc) dominance is at 41.4% which is a slight rise since Thursday localised low of 39.8%. The price of Bitcoin is currently $47,230 representing a loss of 1.61% over the last 24 hours and a loss of 8.30% and 26.6% for the last week and month respectively.

While a drawback of 1.61% is of no real concern to traders the fact that Bitcoin has recently lost support at $48k and $47k with a localised dip down to $45.7k is more worrying. Who is selling and why?

**Different strokes for different folks**
-----------------------------------------

With conflicting narratives across the world, it is difficult to determine just what is happening in the market. On one hand we have seen recent large scale investment from the likes of Michael Saylor of Microstrategy whilst on the other hand there is news coming out of Russia that the Central Bank of Russia is banning mutual funds in the country from making investments into Bitcoin.

Meanwhile, the German Savings Banks Association have announced details regarding a pilot project aimed at providing and exchange and private wallets to their 50 million customers allowing each and everyone to purchase cryptocurrencies directly.

Clearly each country has its own approach.

There is cause for optimism on the immediate horizon however as recent data from crypto exchange Bitfinex show there is increasingly strong buying support for Bitcoin from $44,500 to $46,000.

**FOMC report imminent**
------------------------

Many investors believe this is in response to anticipated findings resulting from the FOMC meeting scheduled for Wednesday 15th December. The FOMC or Federal Open Market Committee is a group of 12 members which decide on monetary policy for the US Federal Reserve and the results of tomorrows key meeting are eagerly awaited by the cryptocurrency community. If, like many people are expecting, the FOMC meeting announces continuing rates of inflation then many investors will continue to see Bitcoin as a solid hedge. The previous FOMC meeting at the beginning of November announced the largest rise in inflation in 40 years leading to a surge in the price of Bitcoin from $60,500 to $68,700. The data from Bitfinex appear to confirm confident traders looking to buy at the bottom of this pull back before making the most from a 10% surge in price.

**Buy the dip?**
----------------

As Omnicron continues to develop across all corners many financial markets look like they are on shaky ground and Bitcoin is no exception. Cryptocurrencies are seen by many as a speculative investment and although the market is more mature than it was 5 years ago there is still a large portion of investors who do not share the confidence of others.

For many, investing in crypto has always been a long term project with objectives set 5 and 10 years into the future. Once the underlying technology and the context in which it can help society is understood many more people will be drawn to making their first cryptocurrency investment. Until then the wise investor will be making the most of this short term dip.



Bitcoin Price Falls Further While Buyers Remain Patient

The price of Bitcoin was struggling for momentum today as the price hovered just below $49,000 on major indices across the market representing a fall of just 0.31%

The price of [Bitcoin](/coins) has remained range bound between $48-$51,000 since last weekends price fall from $58,000 down to $46,000. It seems as if this weak price action is keeping buyers at bay who are likely waiting for the surge in price. That being said, Bitcoin still represents just over 40% of the total cryptocurrency market. Bitcoin also has an individual market capitalisation of $1.03 trillion – the largest cryptocurrency in the market.

## More buys from Michael Saylor

This malaise seems to be affecting the broader crypto market with no clear break out gainers or losers across the last 24 hours. As we mentioned previously, without regulation the market is wide open to manipulation. This puts many investors and traders off making an entry and building a position – except Michael Saylor that is. The founder and CEO of [Microstrategy](https://www.microstrategy.com/en), the US based business software and business intelligence organisation, announced the purchase of an extra 1,434 Bitcoin on Twitter yesterday at an average price of $54,477 bringing the companies total holdings to 122,478 Bitcoin. Clearly Mr Saylor has more confidence in the future price of Bitcoin that the rest of the market. Microstrategy’s Bitcoin stack is now worth a coll $3.66 billion with an average buy in price of $29,861 meaning Saylor is still clearly in profit.

## Inflation hedge


Saylor, along with many others, see Bitcoin as the perfect hedge for inflation and a stagnating gold price. In fact, Michael Saylor believes that Bitcoin has the potential to replace gold as the number one store of value. In a recent tweet, Saylor made the bold claim that the cryptocurrency revolution will be lead through inflation, technology and adoption with Bitcoin leading the way.

The caution from investors may be due to the US Consumer Price Index report, due to be released this Friday at 13:30 hours UTC. This report is set to show that the cost of living in the world’s largest economy has risen by 6.8% in November with 7% just around the corner. If this predicted data proves to be correct then an injection of volatility into the crypto market is to be expected. With inflation reaching a 30 year high many believe this is helping to create the perfect storm for the rapid advancement and adoption of digital currencies to help relieve the pressure.

## XRP shows strength amid uncertainty

Cross border remittance coin XRP saw strong growth this week leaving many to speculate that somebody somewhere has inside knowledge that the case with the SEC could be coming to a close and the adoption of Ripple Net could be close at hand. Fans of XRP and Ripple have experienced a long and arduous three years after many false dawns and broken promises. It seems as if the court case was the final nail in the coffin for the much maligned XRP. However, with the current economic climate continuing to experience choppy water the time is perfect for a multinational organisation such as the World Economic Fund or the International Monetary Fund to approve the use of a new approach to international finance. Could this involve XRP and Ripple? Only time will tell.

BTC price Struggles to Make Headway

The price of Bitcoin (BTC) stalled at a key level today as the recovery from the Thanksgiving sell off continued.

At the time of writing, the price of Bitcoin stood at $56,613 with a slight drop of 0.67% in the last 24 hours. The price of Bitcoin saw a significant drop over the weekend falling from a high of $59,400 on Thursday, November 25th, to $53,757 by Sunday, November 28th, demonstrating that the price of Bitcoin is far from stable.

With the end of November just hours away the general synopsis of the Plan B stock to flow model appears to be in serious doubt. In recent months the well-known scarcity and demand curve has shown to be eerily accurate by correctly predicting both August and September monthly close and just 3% out in October.

However, the model shows November with a predicted closing price of $98,000 which would require a massive daily close in the next 24 hours. Watch this space.

Regardless of the weak price action of Bitcoin in the last few days, professional traders remain bullish on the long-term price. Yesterday, infamous investment group MicroStrategy announced they had recently purchased 7,002 Bitcoins at an average price of $59,187 clearly demonstrating their confidence in the long-term price stability of Bitcoin. The $414 million purchase was achieved through the sale of company shares through October and November.

**Average Transaction Fee Continues to Fall**

Away from price action and technical analysis, the Bitcoin network continues to grow and appears to be in great shape. Recent reports and data show that for every $95,000 processed by the network the average fee comes to just $1. The calculation was achieved by dividing the mean transaction volume by the fees over a selected period of time (in this case seven days) and was provided by on-chain analyst Dylan LeClair using data provided by Glasnode.

Bitcoin fees have continued to fall since the successful adoption of the layer 2 payment protocol ‘Lightning Network’ in 2020 whose sole aim is to increase speed and reduce cost. Indeed, the decision by the government of El Salvador to make Bitcoin legal tender was based on the integration of a Lightning Network protocol into its official wallet.

Bitcoin Price Stalls but Recovery Continues

Bitcoin holders woke up with a severe case of digital cold turkey less than 24 hours after Thanksgiving. The price of the number one digital asset slipped by 2.85% to $55,493 at time of writing.

While this pull-back is nothing compared to recent drawdowns it has left many Bitcoin holders frustrated with the lack of positive price action in recent weeks. Many altcoins have witnessed astronomical gains while Bitcoin has stuck range bound between $56k and $58k for what seems like an eternity.

Yesterday’s push to $59,500 led many to believe that it was Bitcoin’s time to take centre stage once again with $58,000 looking like it offered solid support. However, as in previous years immediately following Thanksgiving, Bitcoin holders woke up this morning to the grim reality of yet more negative price action.

## Inflation concerns

All this being said, the broader stage continues to be set for Bitcoin to bloom. As more and more international governments begin to realise the value of digital currencies and the benefits they bring, legislation for the integration of cryptocurrency into everyday society is beginning to take shape.

Furthermore, with rising inflation across the globe the need for a stable hedge has never been greater. With gold prices stagnating in recent years the lure of a digital alternative makes Bitcoin a very attractive proposition indeed.

## Bitcoin eclipses [Paypal](https://www.paypal.com/us/home) with sights set on Visa

In yet another cause for crypto celebration the value transferred over the Bitcoin network has exceeded that of Paypal by more than 60%. Recent figures from Blockdata show that the Bitcoin network processed over $489 billion per quarter in 2021 compared with Paypal’s $302 billion. And now many crypto speculators are starting to believe that the next milestones to fall will be those of Mastercard and Visa.

To date, Bitcoin is processing just under 27% of Mastercard’s $1.8 trillion and around 15% of Visa’s mighty £3.2 trillion each quarter. If Bitcoin were to continue along its current trajectory of growth it could outpace the total capital transferred by Mastercard as early as 2026.

## Clinton calls for clarity

Former United States Secretary of State Hillary Clinton stepped into the crypto debate this week with calls for stronger regulation in order to prevent market manipulation by Russia, China and ‘others’.

As part of a larger debate on social media manipulation Clinton warned of ‘technology of all kinds’ which has the potential to destabilise countries and the world reserve currency status of the dollar.

Clinton said: ‘There is one thing on the horizon which people are beginning to pay attention to and that is the need to regulate the cryptocurrency market. Imagine the combination of social media amassing even larger sums of money through the control of certain cryptocurrency chains.’

Her comments come as many countries begin to understand the notion of using digital currencies to circumnavigate financial sanctions put in place by the leading nations and [SWIFT](https://www.swift.com/) (the Society for Worldwide Interbank Financial Telecommunication) - the world’s current leading system of transferring capital worldwide.

Bitcoin Holders Frustration as Price Down

NFL player, Odell Beckham Jr, will be receiving his salary in Bitcoin (BTC) as he has entered into a partnership with [Cash App](https://cash.app/).

Beckham Jr. is a wide receiver for the Los Angeles Rams and reportedly currently earns a $4.25 million salary, which will now be converted into the digital asset.

## 'The Future Has Arrived'

"We're proud to be the first major sports team to embrace Bitcoin –The future has arrived." – Sterling Scott, founder of Cash App.

The partnership has been agreed upon by Cash App's owner, Square which will be paying Beckham Jr. his salary via the service. The app allows users to buy and store Bitcoin amongst other digital currencies.

## Swamped With Deals

Beckham Jr.'s announcement of the deal was made on social media using the Cash App where he also discussed how he was interested in the new technology, but he claimed that he had been swamped with "contracts and endorsement deals" which meant he could not pursue his interest in cryptocurrency until now.

The NFL star and receiver, Odell Beckham jr, said: "It's a NEW ERA & to kick that off I'm hyped to announce that I'm taking my new salary in bitcoin," on Twitter.

The football player also revealed he had invested a small amount of his own money into [Bitcoin](/coins/btc) earlier this year. 



NFL Star Odell Beckham Jr to Receive Salary in Bitcoin

Bitcoin has been legal tender alongside the U.S. dollar in El Salvador since September 2021.  Now, the nation’s popular President, Nayib Bukele, added further fuel to his “rock star” persona with an announcement this past Saturday that El Salvador would be building the world's first "Bitcoin City," to be initially funded by bitcoin-backed bonds.

It’s another clear indicator of Bukele’s growing affinity for cryptocurrencies and he appears to be doubling down on his bet to harness the power of the digital assets in order to fuel further investments in the Central American country.  The government has already backed Bitcoin with a $150 million fund and, to incentivize Salvadorans to use it, the El Salvadorian government has offered $30 worth of credit to those using its digital wallet.

**The Liquid Network**
----------------------

It has been announced that the new city would be built [near the Conchagua volcano](https://en.wikipedia.org/wiki/Conchagua_(volcano)) - Conchagua consists of two overlapping stratovolcanoes and overlooks the Gulf of Fonseca.  The geographical location is a deliberate move to take advantage of the available geothermal energy, converting it to a source of power both for the city and for more Bitcoin mining activities.  "This is a fully ecological city that works and is energized by a volcano” Bukele commented at the closing a week-long promotional event for Bitcoin. 

Government officials stated that the country would issue $1 billion in “bitcoin bonds” in 2022 to raise additional resources to fund the construction of Bitcoin City. The bonds are going to be issued on “[the Liquid Network](https://liquid.net/)” - a sidechain-based settlement network that _enables faster, more confidential Bitcoin transactions and the issuance of digital assets_ according to information posted on the site.

The Liquid Network is managed by [Blockstream](https://blockstream.com/) who said that $500 million of the funds raised will be dedicated to building the infrastructure for the city and additional bitcoin mining in the region.  The other $500 million would be used for, what else, the purchase of more bitcoin cryptocurrency.

**Zero Carbon Dioxide Emissions**
---------------------------------

Not to be easily outdone, the government plans to build their innovative city to look like the crypto coin from the sky when it's built.  Taxes will also be noticeably lacking from the new city considering there will be no property, income or municipal taxes, and the city is expected to have a level of zero carbon dioxide emissions.  Utopian in every conceivable way.

Some Salvadorans have vocalized their trepidation at Bukele’s well-publicized love affair with digital currencies with some protests being held against the government for its unbridled embrace of the digital assets.  Still, they’ve done little to harm his popularity and credibility with voters. 

Ultimately, the city would be built with the hopes of attracting more foreign investment.  Those with influence over the project have mentioned sites for residential areas, malls, restaurants, and a port.  Also, the El Salvador president mentioned ideas like digital education, technology, and sustainable public transportation.

“This is going to make El Salvador the financial center of the world,” Bukele said.



El Salvador to become World’s First “Bitcoin City”

There’s a lot of chatter about the brave new world of crypto ETFs. So, what’s going on?

[Bitcoin](/coins/btc) (BTC) and [Ethereum](/coins/eth) (ETH) are two of the most popular and heavily capitalised cryptocurrencies on the digital assets market today. Both have gained a reputation for being a starter home of sorts for new investors who are finally ‘ready and willing’ to take their first steps into the world of cryptocurrency investing.

Cryptocurrencies have gone an a remarkable run these past two quarters and while many investors remain wary of the market hysteria, they can also benefit from its innovations. In terms of investment opportunities, the proliferation of new cryptocurrency exchange traded funds (ETFs) has further simplified (and accelerated) the adoption of digital currency investments among newcomers to the digital assets market.

## The History of ETFs

ETFs are a widely adopted strategy used by investors who want to ‘diversify’ their exposure to a particular industry, class, or sector. They were first introduced in the 1990s and rapidly gained popularity with _individual_ investors for their simplicity.

The first Bitcoin ETF in the US started trading on October 19, 2021, and now several crypto ETFs have followed suit. Some of them offer access not only to Bitcoin, but also Ethereum and other popularly traded coins.

### Here are examples of crypto ETFs setting the trends:

[ProShares Bitcoin Strategy ETF](https://www.proshares.com/funds/bito.html) (ticker: BITO)

Kiplinger has officially called the ProShares Bitcoin Strategy ETF ‘[a blockbuster](https://www.kiplinger.com/investing/etfs/603621/proshares-bitcoin-strategy-etf-bito)’. A fitting name for an ETF that successfully attracted a mind-boggling $1 billion of investors’ money over the course of 48 hours after the ETF was launched. The BITO ETF is historical in the sense that it was the first crypto ETF that the Securities and Exchange Commission allowed to trade on a major US exchange. At present, the BITO ETF has close to $1.5 billion in assets.

Grayscale Ethereum Trust (Ticker: ETHE)

For investors willing to invest outside the ‘safety’ of Bitcoin, Grayscale offers their Ethereum Trust ETF. Widely recognised as the number two cryptocurrency, Ethereum came to fruition once people began to realise that Bitcoin’s blockchain technology could be utilised in myriad ways. Voila! The world found the second most popular digital token – Ethereum. As the name would suggest, this ETF seeks to track the ETH market price and presently has $14.5 billion in assets.

[Bitwise 10 Crypto Index Fund](https://www.bitwiseinvestments.com/funds/Bitwise-10) (Ticker: BITW)

For those with an appetite for more risk, this ETF is the world’s first crypto _index_ fund offered to provide investors with a way to get more exposure to the crypto market _beyond_ what Bitcoin alone may offer. Earlier this summer, it was reported that Bitcoin’s share of the total market capitalisation of the crypto market fell from 69% to 42% as other assets like Ethereum, Cardano and Solana have grown in popularity. Bitwise says it screens the fund’s holdings for certain risks and rebalances it monthly. While Bitcoin and Ethereum both have a role to play in this ETF, additional holdings include digital assets such as Algorand and Uniswap. The BITW fund has $1.4 billion in assets.

Investors that are looking for space in between the world of traditional stock investing and the wildly innovative and volatile ecosystem of cryptocurrencies may find what their looking for in the expanding market of crypto ETFs.

The Brave New World of Crypto ETFs

Bitcoin miners in the mining industry are planning to move towards nuclear energy as pressure to go green increases.

According to Harry Sudok from [GRIID](https://grid-mining.com/?a=about), nuclear energy presents a 'tremendous opportunity to introduce enormous amounts of clean, carbon-free energy' to the base load. Sudok spoke at the Bitcoin and Beyond Virtual Summit earlier this month for American Bitcoin mining company, GRIID.

## Hopes for Nuclear Expansion

He said; “The growth rate is largely focused around solar and wind right now, and that’s just the reality of the programs that have been rolled out over the last 8-10 years. But what we’d love to see is an expansion of nuclear".

GRIID is a renewable energy company that specialises in solar and wind power. They have been mining since 2013 and offer full service to their customers who want to get involved with Bitcoin, but don't know how to start.

## Benefits of Using Renewables

Sudok believes the industry needs widespread adoption of renewables before it can be successful globally. He also wants more people to understand the benefits of using renewables. He said; “We need to communicate all the positive things that are happening in renewable energy, not just reduced emissions".

Sudok claims that GRIID has experienced an exponential growth rate for 12 months. They have expanded their customer base and staff numbers during this period.

Bitcoin Miners Look Towards More Sustainable Energy

Champagne corks were flying early Tuesday morning as another Bitcoin all time high was recorded.

According to average market data from Coinmarketcap.com, the price of Bitcoin topped out at $68,530 at 4:00am Tuesday morning (GMT), making November a month of serious gains for Bitcoin holders and investors so far.

Such a strong and continued surge in the recent price, resulting in the latest Bitcoin all time high, has renewed confidence in the $100,000 target before the end of the year. Indeed, many market pundits believe this magical milestone could even be achieved by the end of November.

**Halving**
-----------

The strong price action of Bitcoin is closely following historical trends that have been set post Bitcoin halving events in 2012 and 2016.

A Bitcoin halving occurs every 210,000 blocks (roughly every four years) when the block reward for mining Bitcoin is cut in half. As a consequence, demand for Bitcoin increases as supply is cut in half, leading to scarcity and a surge in price.

Previous Bitcoin halvings in November 2012 and July 2016 saw huge price rallies lasting up to 18 months before the price corrected and significant pull backs occur. However, many market experts are expecting the current price to continue to trend upward through Christmas and into 2022.

When the price will correct is up for debate, although the majority of market commentators believe $100,000 per Bitcoin is more than achievable this cycle.

**Stock to Flow Model**
-----------------------

This cause for optimism can be largely attributed to what is known as the ‘Stock to Flow’ model created in 2019 by the pseudonymous Plan B. The Stock to Flow, or S2F, model looks at the supply dynamics of Bitcoin in relation to previous halving cycles.

In particular, the model divides the remaining Bitcoin left to mine by the rate of annual production.

Price targets formulated by the model following the May 2020 halving have so far proven to be extremely accurate. The August 2021 target of the $47,000 was pretty much spot on as was the following September target of $43,000. Although last month’s target of $63,000 was out by just 3% many believe the November target of $98,000 is more than achievable. Interestingly, the model predicts that 2021 will end with a Bitcoin price close to $135,000.

You may be thinking this all seems too good to be true and you may be right.

Plan B anticipates the current rally will end sometime towards the end of Q1 2022 before the market experiences a significant price correction. While many people tend to agree with his analysis there are those who are taking into account the different socio-economic times we are living in now compared to 2016 and 2012.

As the world adjusts to a post-Covid reality, decentralised networks, the metaverse, NFTs and shared working spaces are becoming increasingly mainstream. This in turn could mean the price of Bitcoin and other leading digital assets remain high as more investors realise the serious potential that this new asset class brings to the investing table.

Bitcoin Records Latest All Time High

New York City’s mayor  Eric Adams took to Twitter last week saying that he would accept his first three wages in Bitcoin. The bond between Bitcoin and newly elected US officials is growing stronger, and that’s likely to hasten the pace at which new cryptocurrency regulatory measures are implemented.

The remarks were interpreted as an attempt to upstage Miami Mayor Francis Suarez, who said earlier that _he_ would accept 100% of _his_ salary in Bitcoin. Suarez told a major media outlet that the move would ‘send a message to the world that we are going to be one of the most innovative governments and innovative cities on the planet’.

Adams is apparently hoping to promote the same message in New York City.

## Will Crypto Contribute to the Economy?

The mayoral announcements are another win for cryptocurrencies, but they also serve as a reminder that Bitcoin, unlike any other asset class, still operates without any governing body overseeing them. Nor do they have a centralised, regulated exchange where people can go to trade them.

Whether either mayor has any success in dictating to their employers the currency in which they must be paid is yet to be seen, but for big media markets like Miami and Chicago to suggest that cryptocurrencies will be a core component of their city’s economic makeup only adds fuel to Bitcoin’s upward trajectory, and that means the current US administration is feeling more pressure to apply regulatory measures to an environment it’s only now beginning to understand.

## Crypto Regulation Steps In

Cryptocurrency regulatory oversight will likely be divvied up among several regulators, including the Securities and Exchange Commission (SEC) with the key players expected to be:

### U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler - The SEC’s primary role is to protect investors and ensure the markets function in an orderly fashion. Gensler, who has extensive regulatory experience, is expected to make the most meaningful contributions to writing the new cryptocurrency regulatory rulebook. What is perhaps most intriguing about Gensler is his previous role at the storied ‘MIT’, the Massachusetts Institute of Technology, where he taught a popular course called ‘Blockchain and Money’.

The most revealing of Gensler’s comments came at a recent conference where he compared cryptocurrencies, an asset class that’s been in existence for about 13 years, to a teenager, suggesting that the technology can’t be expected to reach ‘adulthood’ without regulatory oversight to usher the market to a state of maturity, and to stave off scams and criminal activities.

### Treasury Secretary Janet Yellen - Applauded for breaking so many glass ceilings, Janet Yellen is currently serving as the first female Secretary of the Treasury. As the incumbent of one of the most influential positions in American finance, it is within Yellen’s purview to lead the US Government in its oversight of the cryptocurrency market and its brokers. Prior to her role as secretary, Yellen spent several years as a member of the Federal Reserve Board of Governors where she peaked as the chair of the Federal Reserve.

In many forums, Yellen is often excoriated for showing little support for the cryptocurrency market. While Yellen certainly can’t be considered a cheerleader of the digital assets market, I do believe she is genuine in her concern for reeling in the misuse of existing digital currencies, and that’s is something that would further strengthen an already robust cryptocurrency market.

### Sen. Elizabeth Warren (Massachusetts) - Calling Senator Warren the _Cruella de Vil_ of the cryptocurrency universe may be a bit harsh, but the east coast progressive’s recent comments on digital assets most decidedly places her in the ‘sceptics’ column. Earlier this summer, Sen. Warren told [CNBC](https://www.cnbc.com/world/?region=world) that she’s doesn’t consider Bitcoin a reasonable hedge bet against inflation over the long run, and that’s one of the marquee reasons that some investors use as justification for purchasing Bitcoin, as a hedge against inflation.

## The Future for Crypto Wages

Looking ahead, Warren will be directly involved in formulating new regs on crypto in her role as a member of the Senate Banking Committee.

Cryptocurrencies are a technology that will revolutionize financial transactions at every level, and it will be incumbent on governments to come up with the appropriate cryptocurrency regulatory framework. The sooner reasonable regulations are applied, the sooner digital assets can evolve to their next level of usefulness.



Eric Adams: Wages in Bitcoin?

Claims by Craig Wright that he is the true creator of Bitcoin could be settled in court, in what commentators are calling the ‘trial of the century’.

The identity of Bitcoin’s creator Satoshi Nakamoto remains the crypto industry’s biggest secret, there is one person who claims he is the founder of the world’s first digital decentralised currency.

Australian computer scientist Craig Wright has stood by the claim since 2016 and a court in Miami is set to determine, once and for all, if Wright did indeed have some part in the development of Bitcoin.

Of course, access to 1.1 million Bitcoin in a locked wallet has nothing to do with the settling of the case, but is a strong reason to determine the facts.

The case centres around whether Craig Wright acted alone or with a now deceased partner in setting up and developing the Bitcoin source code. A jury of 10 have three weeks to listen to evidence and determine the facts of the case.

Craig Wright’s claim for sole ownership and development of the Bitcoin source code centres around his autism and the lack of a written agreement between himself and the other party, the now deceased David Kleiman.

One of the easiest ways to determine the author of the original source code and resulting locked Bitcoin wallet is to find out who can access the original funds. However, to date no one has been able to conclusively prove they own or can access the keys to open up the wallet.

## The $69 Billion Question

With the current price of Bitcoin floating around $63,500 determining the custody of 1.1 million, Bitcoin has serious ramifications. Should the case settle in anyone’s favour, the locked Bitcoin may become released and immediately placed for sale on the open market.

The impact of $69 billion worth of Bitcoin entering the market would send huge shock waves through the industry and have a serious effect on the price and stability of the world’s number one digital currency. The case continues.

## Bitcoin Price Explosion

A huge price surge saw Bitcoin explode more than $1,500 in a matter of minutes on Tuesday morning surpassing the highest price within a week.

Bitcoin Price Explosion came after days of sideways action and little volatility however many industry experts were expecting the price move.

This positive move adds to the bullish feel that has accompanied Bitcoin throughout October and most of 2021 with many investors seeking to jump on board the cryptocurrency express. Another bullish indicator saw the Relative Strength Index (RSI) move into 70 which typically indicates an asset is in high demand. 

Craig Wright Bitcoin Trial: Trial of the Century?

Cryptocurrency investment communities are holding their breath as they await confirmation of the news, is it true?  There is no denying that crypto-investors are being tantalised with recent reports. Such reports suggest that China may be in the midst of reconsidering its current [bitcoin](/coins/btc) ban and other cryptocurrencies.  Such an event could trigger monumental gains in cryptocurrency. It could also set further ablaze a market that’s already been on a serious bull-run.

## Bitcoin Banned in September

In a move that smacked of suspicion right from the moment it was announced back in September, Chinese regulators had prohibited all cryptocurrency mining activities. The country cited concerns that speculative trading was “disturbing economic and financial order \[and\] breeding illegal and criminal activity." This is according to a People’s Bank of China statement.  In simpler terms, cryptocurrencies were a financial component of the communist regime’s economy that Beijing discovered was impossible to control with any amount of precision. Ironically, decentralisation is a deliberate concept of Bitcoin and one of its foundational principles.   

But the coup de grâce of September didn’t come out of the blue.  Beijing had been taking steps to impose legal restrictions on a wide array of cryptocurrency activities dating back to 2013.  Despite the Chinese government’s efforts, their crypto industry continued to thrive.

In fact, the Chinese ban has done little in terms of weakening the mainstream adoption of Bitcoin and other digital assets. The move was especially pivotal in catapulting the US to the top of the world’s crypto mining nations.  Even GOP lawmakers suddenly saw the benefit of making the U.S. a _global_ cryptocurrency hub after China's recent ban.  Since then, the value of bitcoin has doubled in price. Because of this, the Chinese government is likely experiencing second thoughts.

## Speculation Continues

For now, China has willingly forfeited “pole position” in the crypto-race.  Perhaps now they see that the most prudent _economic_ course of action is a return to the crypto-verse, even if it means doing so at much higher prices.  The speculation is continuing on social media. Reports are conflicting in terms of whether or not the country’s National Development and Reform Commission is _really_ seeking public opinion on the inclusion of crypto mining in its list of “phased-out” industries.

China hasn’t turned its back entirely on digital currencies though.  The communist regime has been doing some experimentation with a digital form of currency that converts to their own official currency, the yuan.  China conducted some tests on [the digital state-backed version](https://www.db.com/news/detail/20210714-digital-yuan-what-is-it-and-how-does-it-work) of the yuan, in April of 2021. It doesn’t require an internet connection to make transactions and the functionality has been compared to Apple Pay.  If successful, the digital currency is expected to evolve as one of the communist nation’s primary payment methods.

Why China _really_ banned cryptocurrencies in the first place is still a subject of debate.  Perhaps China sees Bitcoin for what it truly is and became frightened by its power.  A resourceful tool against a government that wants total control over its citizens.



What Does China’s Ban on Crypto Really Mean?

Is China Considering Abolishing its Ban on Bitcoin?

The bitcoin price dropped below $60k in a massive market-wide crypto sell off Wednesday morning.

The world’s largest cryptocurrency by market cap fell below $60,000 for the first time since October 15 causing panic among many traders and investors in the space.

Although a surprise for many, analysts had predicted a price reversal after bitcoin had struggled to maintain above $63,000 after hitting recent all time highs.

There was light at the end of the tunnel though as prices bounced sharply at $58,000 and have recovered well since. The price of bitcoin at time of press remains $58,993 but what happens in the next few hours remains to be seen.

## $500 million liquidated in less than an hour

While this kind of volatility is no surprise to experienced crypto investors, many people had expected that the recent surge in interest, attention from regulatory bodies and the ever increasing need for digital forms of currency on the world stage might have brought some much needed calm to the marketplace. This morning's events show that the market is still heavily manipulated by large and powerful players and demonstrates the best and most profitable investment strategy is to long term buy and hold.

The main culprit in this case seems to be leveraged traders once again. Industry leading trading platforms such as Binance and FTX allow traders to open margined positions with leverage of upto 125x in some cases. Then, periodically, the algorithmic trading engines used by the platforms set out to recover losses by trading against over leveraged positions which lead to massive market sell-offs. Data from TradingView shows $500 million in leveraged positions being liquidated across the market in less than an hour.

Many altcoins also had a hard time with Ethereum losing the coveted $4000 support level for the first time in a week. However, in a similar situation with nearest rival Bitcoin, there was solid buying support at key levels and prices bounced sharply. The current price of Ethereum at time of press is $4028. The situation across the market remains fluid with many coins experiencing even greater losses while others remain completely untouched.

## A case for regulation?

On a large scale perspective the use case for decentralised autonomous networks remains high and investor confidence is strong. Until the relevant authorities introduce comprehensive legislation the cryptocurrency market will continue to be open to manipulation and market sell off’s like today’s will continue unfettered. 

The question remains, if crypto wants to be viewed as a secure investment by professional capital management then this kind of market manipulation needs to be halted and controlled as soon as possible.

Bitcoin Price Drops Below $60,000

Retail giant [Walmart](https://www.walmart.com/) announces plans to roll out 200 Bitcoin ATMs across their United States stores.

Walmart plans to install Bitcoin ATMs across 200 of their stores allowing customers to exchange physical cash for bitcoin.

Working in partnership with ATM manufacturer Coinstar and crypto wallet Coinme, Walmart aim to speed crypto adoption and make it easier for the public to purchase bitcoin with physical cash, lowering the barrier to crypto entry.

Director of Communications at Walmart Molly Blakeman said: ‘Coinstar, in partnership with Coinme, have launched a pilot that allows its customers to use cash to purchase bitcoin. There are 200 Coinstar kiosks located inside Walmart stores across the United States that are part of this pilot.’

With 25,000 terminals already installed across the US, Bitcoin ATMs are nothing new, however many view Walmart’s involvement as an encouraging signal for widespread crypto adoption, especially for those in the lower income bracket.

## Coinme

Coinme describe themselves as a bitcoin wallet provider making it ‘easy to purchase bitcoin at participating Coinstar and Moneygram locations’.

Users simply have to download the wallet app for iOS or Android, create an account and verify their identity before finding a physical location to purchase their bitcoin. The simple to use mobile application will appeal to those who are put off buying crypto through complicated centralised exchanges.

## Coinstar

Coinstar is an established American owned ‘coin-cashing machine company’ which was founded in 1991 and taken over by Apollo Global Management in 2016. Its primary business model focuses on the conversion of loose change into paper currency, donations and gift cards via their coin-counter kiosks. Branching into cryptocurrency seems like the logical next step.

The purchase process has been designed to be accessible and simple.

Bitcoin buyers simply insert physical money into the coin-counter kiosk, state how much bitcoin they would like to buy and receive a voucher with a unique redemption code. Purchasers then redeem their bitcoin by logging in to their Coinme wallet and inputting the specified code.

The initial pilot is for 200 Bitcoin ATMs through Walmart’s biggest stores with plans for a further 8,000 to be rolled out if the pilot proves popular.

However, many people were quick to criticise the high fees involved with the ATMs. With 4% added as a ‘trade fee’ and a further 7% added as a ‘cash transaction fee’ many people labelled the ATMs a ‘rip off’.

Whether the Bitcoin ATMs prove to be a hit remains to be seen, however what the pilot clearly shows is that retail giants such as Walmart have a strong interest in providing crypto accessibility to all corners of society.

Bitcoin ATMs to be Rolled Out by Walmart

The excitement caused by the launch of the world’s first Bitcoin ETF (exchange traded fund) earlier this week is raging on.

Cryptocurrency enthusiasts and investors championed the eagerly anticipated launch on social media, while commentators were quick to analyse the implications.

Coined the [ProShares Bitcoin Strategy ETF](https://money.cnn.com/quote/quote.html?symb=BITO), trading of the revolutionary fund kicked off at $40 a share under the ticker symbol BITO and headed upward, closing out the day up 5%.

## "Investment Vehicle"

According to ProShares, their Bitcoin exchange traded fund is an investment vehicle that tracks BTC (bitcoin) futures contracts. A representative for the company commented that the new ETF boasted first day trading volume of some 29 million shares and has, so far, banked assets of over $1 billion.

The successful launch of the first cryptocurrency-based ETF is considered by many to be, for now, _the_ watershed moment in terms of legitimising these digital assets as a genuine investment vehicle for anyone.

The financial brain trust has been trying for years to launch an ETF that exposes investors to bitcoin and while megabanks like JP Morgan and Wells Fargo have allowed specific segments of their client rosters the option of investing in certain types of cryptocurrency, none of those banks, before _this_ week, could offer their clients an ETF to invest in.

That’s all changed now.

## ETFs Gaining Popularity

Crypto-ETFs are expected to gain popularity, and accelerate interest, among traditional investors as a one of the simplest options for getting a bit of exposure to cryptocurrency without having to deal with the enigmatic intricacies of cryptocurrency exchanges in order to buy the digital assets.

And wouldn’t you know it? More players are joining the party.

Specialised alternative asset management firm, Valkyrie Investments, also got the green light from the SEC not long ago to launch their own version of the _next_ bitcoin futures ETF. Valkyrie’s new ETF is on par to begin trading on Nasdaq today. The fund will trade under the ticker BTF, but we can’t help but mention the storyline behind Valkyrie’s brief plan to designate a familiar acronym to the fund: BTFD.

Did you miss it?

It’s okay. I did too.

## The Cryptoverse

Valkyrie took a swing at a brilliant marketing strategy, and almost got away with it. The temporary ticker symbol of BTFD was purported to be an acronym that stood for ‘buy the {expletive} dip,’ which is a heavily promoted maxim for a certain trading strategy in the cryptoverse that has yielded hefty returns for the traders who have adopted the strategy. The security and exchange commission (SEC), no doubt, had their reservations and now it appears the fund will start trading under the original ticker symbol of BTF.

Whatever the ticker symbol, it is undeniable that cryptocurrency has now achieved a ‘stamp of approval’ from both regulatory and traditional sceptics and the market’s evolutionary pace now includes the ETF market. The cryptocurrency market continued its moonshot trajectory achieving a value of over $2.6 trillion earlier this week, after bitcoin hit record highs of more than $66,000.

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