Bank of America (BofA) says Bitcoin's recent surge is the biggest bubble in its history, while several altcoins are outperforming BTC with weekly returns of up to 130%. These and more news in this practical daily summary so that you are always informed with the most recent events that occur within the crypto world.
📍According to a report According to Reuters, Bank of America (BofA) is considering that the “violent” rise of Bitcoin, which has been sustained in the last 2 months, and which in 3 weeks broke and surpassed its maximum of $20.000 USD seen in 2017, may be a new speculative bubble. Michael Hartnett, chief investment strategist at BofA, noted that in the specific case of Bitcoin, its current highs are unsustainable, and that its price could experience a sharp drop similar to those seen in previous years.
“The violent inflationary price action that drove bitcoin up over the past two months, «knocks down the doors of previous bubbles»".
For their part, analysts and experts such as Jimmy Nguyen, president of the Bitcoin Association, argues that the current rally in the price of Bitcoin is different from those seen in previous years, mainly because the market has seen the arrival of institutional buyers and investors, and not just occasional investors, which demonstrates the maturity of the market. Likewise, the current economic situation, a consequence of the global COVID-19 pandemic, has caused the price of Bitcoin, and other cryptocurrencies, to revalue, as these are an alternative store of value against the devaluation of fiat money, accelerated by the printing of several billion dollars and euros in fiscal stimuli. The adoption of Paypal and the possible IPO of Coinbase are also elements that give greater legitimacy to BTC as an investment asset and store of value.
📍On January 10, the price of Bitcoin (BTC) saw a slight decline of 5,2% in its value, after reaching a New all-time high of $41.940 USD. Meanwhile, several of the altcoins of the market are experiencing glorious days, with gains of up to 130% in the last week.
Stellar (XLM), Cardano (ADA), dash (DASH) y Bitcoin Cash (BCH) are cryptocurrencies, with better performances this week. Despite a 3% correction accompanying Bitcoin, XLM shows a weekly growth of 127%, going from being worth $0,13 USD on January 3, to more than $0,29 USD at the time of going to press. Experts consider the recent rise in prices to be an influential factor Spanish President Pedro Sánchez’s announcement The decision by the Ministry of Digital Transformation of Ukraine to use Stellar for the development of its digital currency CBDC. For its part, ADA experienced a 75% growth in its value, going from $0,19 USD to more than $0,32 USDThis increase may be related to its new governance program.
DASH is another of the cryptocurrencies that has performed strongly this week; it is also one of the few that is experiencing exponential growth while BTC falls below the $40.000 USD level. DASH went from a value of $88,2 USD on January 3, to more than $XNUMX USD on January XNUMX. $150,3 USD At the time of this edition; its growth was accentuated between January 9 and 10. The price of BCH also grew by 67% this last week, with a value of $400 USD at the beginning of the week to more than $597 USD at the close of this edition.
📍The analysts of JPMorgan, one of the oldest financial companies in the United States, they point out that the approval of an ETF (Exchange Traded Fund) for Bitcoin, such as the one he presented VanEck before the SEC, may negatively influence the price of BTC in the short term.
Although this is one of the most anticipated financial instruments by the Bitcoin crypto community, and it will be extremely positive for the cryptocurrency in the long term, analysts believe that in the short term it will harm its price; since it will create new competition in the market, and will cause many investors to withdraw their participation from the Grayscale Bitcoin Trust (GBTC), which so far, is the only fund that accredited investors have to have exposure to Bitcoin.
📍In the United States, two bars in New York City are for sale in Bitcoin (BTC) or Ethereum (ETH). According to a report From the New York Post, the bars Hellcat Annie's y Scruffy Duffy, are valued at around $975.000 USD, and owner Patrick Hughes is receiving 25 BTC or 800 ETH for both properties, which is equivalent to around $965.000 and $1.000.000 USD approximately, based on the value of cryptocurrencies at the time of writing. According to the New York Post, this could be the first restaurant sale done solely with cryptocurrency in the United States.
📍In Kenya, the government established a 1,5% tax on companies and residents of the country that receive income from trading in cryptocurrencies and digital assets. Non-residents of Kenya, who have been in the country for more than 183 days, will also be subject to the new tax collection rules.
At press time, Bitcoin (BTC) is trading at $37.440 USD.
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