Bitcoin Plummets Below $20,000 for First Time Since November 2020

Square, another payments company, bought Bitcoin for $ 50 million and blocked its name to showcase its work with blockchain technology. Tesla bought 1.5 billion out of it. Venture capital firm Andreessen Horowitz raised $ 4.5 billion for a fourth cryptocurrency-centric fund, double its previous fund.

The excitement peaked in April last year when Coinbase, a cryptocurrency exchange, was unveiled at a 85 billion valuation, an upcoming party for the industry. Bitcoin tops 60,000 for the first time.

Last summer, El Salvador announced that it would be the first country to classify Bitcoin as a legal tender, along with the US dollar. The country’s president updated his Twitter profile picture to include laser eyes, calling cards of Bitcoin trustees. The value of the $ 105 million investment in El Salvador’s Bitcoin has halved since the price dropped.

Senators and mayors around the United States began discussing cryptocurrency, as the industry spent heavily on lobbying. New York Mayor Eric Adams, who was elected in November, said he would take his first three pay checks in Bitcoin. Senator Cynthia Lumis, a Republican from Wyoming, and New York Democrat Kirsten Gilbrand proposed legislation that would create a regulatory framework for the industry that would give more authority to the Commodity Futures Trading Commission, which is open to crypto companies.

Through rage, celebrities fueled fears of disappearance, whipped their NFTs on talk shows and talked about blockchain projects on social media. This year, the Super Bowl featured four ads for crypto companies, with Matt Damon warning viewers that “luck favors the brave.”

That vague optimism was shattered this spring as the stock market plummeted, inflation soared and the tech sector slumped. As investors began to lose confidence in their crypto investments, the money shifted to less risky assets. Some high-profile projects crashed between withdrawals. Terraform Labs, which created TerraUSD, the so-called stablecoin and Celsius, an experimental crypto bank, both collapsed, devalued billions and sent the wider market into a tailspin.

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