Bitcoin has bounced back from a monthly low on Tuesday, with its price returning above $30,000 on Wednesday after once again testing the key $29k support level.
The cryptocurrency started the week at the lower end of that range, spending the weekend bouncing between $31k-$32k, before crashing below $30k on Tuesday morning.
It has contributed to a broader downturn in the crypto market, with Ethereum (ether), Cardano (ada), Binance Coin and Ripple (XRP) all dropping significantly.
Analysts and experts remain divided over which way the market is heading from here. A market-wide crash throughout May and June is being labelled by some as a blip within a long-term bull market, while others fear it could be the beginning of a so-called crypto winter.
Among the more positive forecasts is billionaire investor Tim Draper, who this week stuck by his $250k price forecast for next year.
You can follow all the latest news, analysis and expert price predictions right here.
Bitcoin price breaks above $32k
Bitcoin’s remarkable recovery continues, breaking above $32,000 for the first time since Sunday.
That’s a 10 per cent price surge since this time yesterday, with all losses from Tuesday’s flash crash now completely regained.
Ethereum (ether) is also on a major bounce, looking set to break back above the $2,000 mark with a gain of nearly 15 per cent over the last 24 hours.
Of all the leading cryptocurrencies, dogecoin has seen the biggest gains, rising by nearly 20 per cent since yesterday to return above $0.20.
Anthony Cuthbertson21 July 2021 17:31
Elon Musk to talk bitcoin in ‘nothing off limits’ discussion
In just a couple of hours, Elon Musk will join Twitter boss Jack Dorsey in a wide-ranging discussion about bitcoin.
The self-proclaimed Technoking of Tesla and part-time bitcoin enthusiast has been praised for causing the cryptocurrency to surge to new all-time highs earlier this year after investing $1.5 billion and allowing sales of electric cars in btc. Musk was also blamed for causing the price to crash after publicly expressing concerns about bitcoin’s environmental impact.
Dorsey, on the other hand, has been consistent in his advocacy of the cryptocurrency in recent years, and will likely seek to convince his pal of the benefits of bitcoin.
The two will chat at The ₿ Word Conference at 11am PDT (7am BST) in a session titled Bitcoin As A Tool For Economic Empowerment. The teaser claims “nothing is off limits” in their discussion.
We’ll bring you all the updates as they happen, and you’ll be able to watch it here.
Anthony Cuthbertson21 July 2021 17:07
How China’s bitcoin mining share has plummeted
The latest data from the Cambridge Bitcoin Electricity Consumption Index shows just how severely China’s bitcoin mining share has dropped over the last year and a half.
Anthony Cuthbertson21 July 2021 16:18
Bitcoin ‘passed the stress test’
The exodus of bitcoin mining operations from China has been described as “one of the largest infrastructure displacements in modern history,” and was a major contributor to the cryptocurrency’s price fall since April.
Following the crackdown by Chinese authorities, bitcoin’s hash rate plummeted in tandem with its price. Mines shut down en masse throughout entire regions in China, however new operations are now beginning to come online in other parts of the world as people seek to take advantage of the huge profits that can be made.
While the short-term hit was considerable, many within the industry believe that it was a good and necessary thing for bitcoin’s future. Not only does it decrease bitcoin’s environmental impact, as the new machines are more reliant on renewable energy sources (Kazakhstan excluded), it also means the network is more evenly distributed and decentralised.
Anthony Cuthbertson21 July 2021 15:23
China’s bitcoin mining share plummets
Bitcoin mining data from the latest Cambridge Bitcoin Electricity Consumption Index has revealed the extent of China’s crackdown.
After accounting for more than three-quarters of all mining output in September 2019, it is now less than half.
The exodus has benefited North America and Central Asia the most, with Canada, the US, Iran and Kazakhstan all seeing the biggest gains in overall mining share.
Despite bans throughout major mining regions in China, it remains by far the most dominant country in terms of average monthly hashrate.
Anthony Cuthbertson21 July 2021 12:15
Bitcoin price on the march
Bitcoin has now shot above $31,000, returning to the zone it has been trading within for the past month just one day after falling out of it.
Ethereum (ether), Binance Coin and Cardano (ada) have also seen a massive bounce back – all rising by around 10 per cent over the last 24 hours.
The reason for the market-wide resurgence is as hazy as the flash crash that took bitcoin below $30k, though some analysts appear hopeful that Elon Musk’s appearance at Jack Dorsey’s “The B Word” bitcoin event later today could provide a boost to the overall industry.
The session the two tech figures will appear in at the event is named “Bitcoin as a tool for economic empowerment” and it will kick off at 11am PDT (7pm BST).
Anthony Cuthbertson21 July 2021 11:40
Biggest ever private crypto deal closes
The world’s biggest ever private equity round in the history of cryptocurrency has just closed.
Crypto exchange FTX raised $900 million in a Series B funding round of more than 60 investors, which puts its valuation at $18 billion.
FTX only launched in 2019 but already processes over $10bn in daily trades. Just one year ago it was worth around $1.2bn. As part of its meteoric rise, FTX has landed ground-breaking sponsorship deals – most notably securing NFL all-star Tom Brady as a brand ambassador and landing the naming rights to the stadium of the NBA team Miami Heat.
“FTX is the high-quality, global crypto exchange the world needs, and it has the potential to become the leading financial exchange for all types of assets,” said Alfred Lin, partner at one of the Series B investors Sequoia Capital.
Anthony Cuthbertson21 July 2021 10:13
Bitcoin price bounces back above $30,000
Bitcoin has returned above $30,000 on Wednesday morning, proving that $29k remains the key price support.
It is the second time since the price crash from mid April that the cryptocurrency has tested this level and bounced back.
Bitcoin reached as high as $30,895, according to CoinMarkertCap’s price index, but subsequently dipped slightly and is now trading at around $30,750.
Other leading cryptocurrencies have also seen a slight recovery, with Ethereum (ether), Binance Coin, Cardano (ada), dogecoin and Ripple (XRP) all rising by between 3-7 per cent since this time yesterday.
Anthony Cuthbertson21 July 2021 08:50
‘When in doubt, zoom out’
The price of bitcoin continues to linger below $30,000, though is yet to fall lower than $29,000.
While some investors and traders may be spooked by the latest price crash, others are urging people to look at the longer-term direction of the market.
Terms and phrases like “HODL” and “when in doubt, zoom out” are being shared across social media, with Binance CEO Changpeng Zhao – known as CZ – noting that bitcoin was below $10,000 this time last year.
Anthony Cuthbertson20 July 2021 17:07
Mastercard boosts crypto card capabilities
Mastercard has just announced a major update to its card programme for cryptocurrency wallets and exchanges.
Partnering with Evolve Bank & Trust and Paxos Trust company, as well as crypto firm Circle, Mastercard will enable more banks to allow people to spend their bitcoin and other cryptocurrencies wherever Mastercard is accepted.
“Today not all crypto companies have the foundational infrastructure to convert cryptocurrency to traditional fiat currency, and we’re making it easier,” says Raj Dhamodharan, executive vice president of digital asset and blockchain products & partnerships at Mastercard.
“Through our engagement with Evolve, Paxos, Circle and the larger digital assets community, Mastercard expects to deliver on our promise of consumer choice to provide options to people around the world on how and when to pay.”
Anthony Cuthbertson20 July 2021 14:54