Bitcoin Slumps Until June Low; Trump’s New Crypto Bull

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Bitcoin fell more than 8% at a steep Thursday auction, reflecting the worst stock market day since March. It dropped to about $ 9,000 before recovering some of its earnings on Friday. About $ 78 million worth of long contracts in the futures market were abolished during the downturn. The downside came after another refusal at the $ 10,000 resistance level, which briefly surpassed it following a statement by the Fed expressing concern about the economy on Wednesday.

Despite bitcoin’s shocking rise in the past month, its the long-term confidence of early adopters is unmatched. Crypto pioneer Adam Back predicted in an interview with Bloomberg that it will reach $ 300,000 in the next five years as investors rush to retain value while central banks print money to propel the global economy.


A crypto veteran is now internal in the federal banking system after former general counsel Coinbase Brian Brooks has been appointed interim manager of the currency, making him the chief banking regulator of the Trump administration. It is already throwing out ideas about ways blockchain can make transactions more efficient for the thousand and more banks under his judgment, noting that international money transfers on the SWIFT network can be painfully slow and put money at risk.

But don’t expect Brooks to advocate for government-backed cryptocurrency in his new role. “I don’t think that’s the government’s role, quite frankly, ”said Brooks. “But I think the Fed and the SEC need to be setting frameworks of what that digital currency needs to be.”

News broke last weekend as well that the IRS and the US Drug Enforcement Administration plan to do buy licenses from Coinbase for an analytics platform, firing a trip among Coinbase users regarding data privacy. Coinbase soon tried to reshape the narrative and promised the data “it does not contain any personally identifiable information to anyone. ”


In one 24-hour span, an unknown crypto user went a $ 2.6 million transaction fee twice to transfer much smaller amounts of ether. The huge fees charged suspicions of money laundering, but the more likely explanation is that it a an error in the user’s wallet software, especially as the fee is the same both times. Ethermine, the group of miners who processed the transaction, calls on the consumer to contact them to recover the money.


The cost recovery cost to bitcoin mining can be as little as $ 5,000 thanks to low electricity prices and the abundance of hydropower plants in China, well below the $ 12,000 to $ 15,000 range that some researchers expected following the halving. This gives some profit-turning mining centers an incentive to sell the bitcoin they are mining to cover operational costs. Don’t be surprised if this reality leaves bitcoin liable to correction soon.


Goldman Sachs made headlines in late May with presentation to clients that bitcoin and cryptocurrencies are panned, but internally, it it may not be so meaningless. Former Goldman investment banker Ethan Vera, now a crypto mining executive, tweeted, “I really think Goldman further ahead than most other banks on bitcoin. ”

Institutional support for bitcoin more widely growing. A survey by Fidelity found that a third of institutions in the US and Europe are invested in cryptocurrencies. Inflows to the Grayscale Bitcoin Trust increased for the last eight weeks of the first quarter in a row, and 88% of its investments during that time frame came from institutions.


Wild, Wild East: Why the ICO Boost in China Rejects Dying [Cointelegraph]

Bitcoin Update Rally May Have Runs Its Course, Technical Show [Bloomberg]

Institutional Boomers Custody Battle Pits Against Crypto Upstarts [CoinDesk]