Bitcoin Adds Back $150 Billion As Visa, PayPal Rev Up Crypto Offerings And Institutions ‘Buy The Dip’

Novelty Coins Representing The Bitcoin Cryptocurrency : Illustration

After a stark plunge Thursday that wiped out $100 billion in market value, the world’s largest cryptocurrency is back near all-time highs Tuesday as corporations like Visa and PayPal join other institutional players in expanding their crypto offerings.

As of 4 p.m. EDT, the price of bitcoin has climbed 2% over the past 24 hours, pushing its market capitalization up to $1.1 trillion–about $40 billion shy from an all-time high on March 13 and pushing gains to roughly $144 billion since a sharp correction on Thursday, according to crypto-data website CoinMarketCap.

‘Analysts are pinning the resurgence to still-booming institutional adoption, including PayPal’s new cryptocurrency checkout service, which launched Tuesday and allows the company’s more than 375 million customers to shop using cryptocurrency at millions of online merchants (PayPal didn’t specify an exact figure, but says the program will expand in the coming months).

Qanda Senior Market Analyst Edward Moya calls the move “another massive cryptocurrency endorsement from Wall Street” and “further proof of mainstream acceptance” just one day after Visa said it will start settling transactions with cryptocurrency partners using a token built on the Ethereum blockchain, which underpins the world’s second-largest cryptocurrency, ether.

Moya notes that bitcoin, which is priced at about $59,080, could struggle to push past $60,000 again but says the recent developments “should be enough to keep the bullish trend going strong.”

Nigel Green, the CEO of $12 billion wealth advisory deVere Group, said in an email Tuesday that growing corporate investments from the likes of Tesla and billionaire Jack Dorsey’s Square are signs that institutions are employing the “buy the dip” mantra popularized by retail investors—meaning they’re loading up on bitcoin when prices plunge.

What To Watch For

Regulation. Though Wall Street is warming up to bitcoin, legendary hedge fund manager Ray Dalio warned last week that he thinks there’s a “good probability” bitcoin could be banned by the U.S. government, similar to how it banned gold nearly a century ago. The Securities and Exchange Commission has been slow to issue regulation for cryptocurrencies.

In an interview with Forbes, SEC Commissioner Hester Peirce said Gary Gensler, President Joe Biden’s nominee to head up the agency,  would likely be “sympathetic to the call for regulatory clarity.” When nations like South Korea started cracking down on cryptocurrency three years ago, prices crashed as much as 80% over the course of one year, though it’s unclear how such a development could affect markets today.

Key Background

Bitcoin prices have skyrocketed over the past year amid booming institutional adoption and inflation fears sparked by unprecedented government spending to combat the pandemic. Last week, billionaire Elon Musk tweeted that Tesla would start accepting bitcoin for vehicle purchases and retaining the cryptocurrency tendered, as opposed to converting it to U.S. dollars. Also this month, Fidelity Investments filed an application for its first bitcoin exchange-traded fund, and banking powerhouse Morgan Stanley said it would open up bitcoin exposure to its wealthy clients, though it’s limiting such funds to investors with “an aggressive risk tolerance.”

Surprising Fact

Bitcoin has surged nearly 800% over the past year. Its return of about 96% this year is more than any sector tracked by the S&P 500.

Further Reading

SEC Commissioner Explains Why A Delayed Bitcoin ETF Has Consequences (Forbes)

Bitcoin Plunge Erases $100 Billion In 24 Hours–Here’s How Long The ‘Bloodbath’ Could Last (Forbes)

Legendary Investor Warns Bitcoin Ban ‘Likely’ As Price Suddenly Soars Toward $60,000 (Forbes)

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I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com

Source: Bitcoin Adds Back $150 Billion As Visa, PayPal Rev Up Crypto Offerings And Institutions ‘Buy The Dip’

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Chamath Palihapitiya says he sees bitcoin going to $200K down the road, and what he discusses what he believes to be the future for Virgin Galactic. I really believe in the business, he says, it’s an incredible team. Subscribe to CNBC PRO for access to investor and analyst insights on bitcoin and more: https://cnb.cx/2BT2E7y
Bitcoin smashed through $40,000 to hit a new record high on Thursday helping to lift the total value of the entire cryptocurrency market above $1 trillion for the first time. The digital coin hit an all-time high of $40,367 at around 1:17 p.m. ET, just a few hours after blowing past the $39,000 level, according to data from Coin Metrics.
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Bitcoin Poised For ‘Massive Transformation’ Into The Mainstream, Citi Says

Bitcoin

Bitcoin could be at the start of a “massive transformation” into the mainstream and on the path to become “the currency of choice for international trade,” according to leading investment bank Citi, which noted the cryptocurrency’s meteoric rise in value in recent years and a growing interest from institutional investors as potentially setting the stage for widespread success.

In a report published Monday, Citi analysts said the world’s most popular cryptocurrency was at a “tipping point” between widespread adoption or a “speculative implosion.”

Bitcoin’s growing use as a payment tool, the increasing availability of digital wallets, and institutional interest from the likes of Tesla and Mastercard have all helped buoy confidence in the cryptocurrency and could see it become the leading medium for international trade in the future, Citi said.

The analysts described Bitcoin as the “North Star” of the blockchain ecosystem, with its underlying technology launching an entirely new domain of the digital economy around it.

However, there are a number of risks and obstacles that could see the Bitcoin bubble burst, the analysts warned, and widespread changes to the market would be required for Bitcoin to be adopted more widely.

Dampened institutional investment in the post-Covid-19 world would remove a key pillar of support for Bitcoin, Citi said, and anticipated regulation and oversight—which runs counter to the anti-establishment ideology underpinning the cryptocurrency—could also “cause many of the most innovative developers and entrepreneurs to exit the ecosystem,” the analysts wrote.

Key Background

Bitcoin is one of the most volatile asset classes around. It has a bumpy and storied history since it was outlined in a paper in 2009, moving from practically worthless to an all time high of over $58,000 a coin in February 2021 (the price has since dropped to around $47,000) with several significant troughs and peaks in between. At its highest, Bitcoin’s market capitalization exceeded $1 trillion. As with the bulk of its history, Bitcoin is still driven by retail investors, who billionaire philanthropist Bill Gates warned not to get drawn in by the “mania” and enthusiasm of Elon Musk who has money to spare should things go wrong.

Crucial Quote

“I think bitcoin is really on the verge of getting broad acceptance by sort of the conventional finance people,” Tesla CEO Elon Musk said on Clubhouse earlier this year.

Tangent

In October, PayPal finally welcomed cryptocurrencies to its platform, believed by many to be a precursor to it moving into the mainstream. PayPal will support four different cryptocurrencies—bitcoin, ethereum, litecoin and bitcoin cash—and will expand the service to Venmo in 2021.

Further Reading

Bitcoin. At the Tipping Point (Citi)

Bitcoin rises 6% as risk assets rally; Citi says at a “tipping point” (Reuters)

Bitcoin’s Long-Term Value Doubted Due to ESG, Tighter Rules (Bloomberg)

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I am a London-based reporter for Forbes covering breaking news. Previously, I have worked as a reporter for a specialist legal publication covering big data and as a freelance journalist and policy analyst covering science, tech and health. I have a master’s degree in Biological Natural Sciences and a master’s degree in the History and Philosophy of Science from the University of Cambridge. Follow me on Twitter @theroberthart or email me at rhart@forbes.com

Source: Bitcoin Poised For ‘Massive Transformation’ Into The Mainstream, Citi Says

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‘Extreme’ Bitcoin Warning Spooks Crypto Market

Bitcoin and cryptocurrency traders and investors are nervously watching prices after market sentiment appeared to take a turn for a worse, dropping to its lowest level since December 2018.

The bitcoin price has been hovering around $10,000 per bitcoin for a few weeks, with many hoping bitcoin was becoming a safe haven from turbulent markets.

Bitcoin and crypto investors are worried, however, with the Crypto Fear and Greed Index showing “extreme fear,” and earlier this week dropping to a 244-day low last seen when bitcoin crashed to around $3,000.

The fear index hit an all-time high in late June as excitement around Facebook’s plans for its bitcoin rival reached fever pitch but has since dived as regulators signal their dissatisfaction with the social media giant.

“The current regulatory roadblock on Facebook’s plans for its digital token has dimmed down investor sentiment for cryptocurrencies,” said Christel Quek, chief commercial officer at Bolt Global, a cryptocurrency wallet provider and entertainment company.

The fear index is currently showing a reading of 20, but earlier this week dropped as low as 11 after falling sharply throughout August.

Since the index hit its year-to-date lows, the bitcoin price has fallen a further 2%, while the overall cryptocurrency market has seen more than $30 billion wiped from it over the last week.

Meanwhile, the bitcoin price dropped below the psychological $10,000 per bitcoin mark this week, further worrying traders and investors.

Some in the bitcoin and cryptocurrency industry pointed out the wider cryptocurrency market has declined along with the bitcoin price.

“Bitcoin and major cryptocurrencies including litecoin, ethereum and Ripple’s XRP have declined [this week], weighed down by concerns of a slowing economy,” Quek added.

The fear index, created by website and software comparison company Alternative.me, calculates the index’s value daily on a scale of 0 to 100 using volatility, market volume, social media, survey, dominance, and trends. Zero means “extreme fear,” while 100 means “extreme greed.”

Follow me on Twitter.

I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: ‘Extreme’ Bitcoin Warning Spooks Crypto Market

You Can Now Buy Crypto With Visa and Mastercard via Binance App for Android – Siamak Masnavi

On Thursday (April 25), Binance announced that its mobile app for Android now lets you buy with Mastercard or Visa some of the most popular cryptocurrencies that are listed on Binance.com.

According to Binance, this support for cryptocurrency purchases via debit/credit cards, which is possible as a result of the partnership with Fintech startup Simplex that was announced on January 31, is available in version 1.5.8.0 or higher of the “Binance – Cryptocurrency Exchange” app for Android.

Since January 31, it is has been possible to buy on the main Binance website (Binance.com) Bitcoin (BTC), Bitcoin Cash (BCHABC), Ether (ETH), Litecoin (LTC), and XRP using debit/credit cards (Mastercard and Visa). Then, on March 12, it became possible to do the same on Trust Wallet (Binance’s official non-custodial wallet app). And now, the Binance app for Android joins the party by offering the same feature.

Here is what you need to do to buy crypto via debit/credit cards on the Binance app for Android:

  • Tap on the “Credit Card” button, which is the last button on the toolbar you see in the middle of the “Home” screen. This takes you to the “Buy Bitcoin” screen.

Binance App for Android - Screenshot 1 - 25 Apr 2019.jpg

  • On the “Buy Bitcoin” screen, you can choose from a dropdown list the cryptocurrency you want to buy (BTC, XRP, ETH, LTC, or BCHABC), specify the quantity of a particular cryptocurrency that you want to buy, and choose the fiat currency (USD or EUR) you want to pay with.

Binance App for Android - Screenshot 2 - 25 Apr 2019.jpg

  • You will then be shown the total amount (including the fee) that you will get charged if you go ahead with the purchase.

Binance App for Android - Screenshot 3 - 25 Apr 2019.jpg

  • Once you tap on the “Buy Now” button on this screen, you will be shown a “Confirm Your Order” screen.

Binance App for Android - Screenshot 5 - 25 Apr 2019.jpg

  • If you then tap on the “Accept, go to payment” button on the confirmation screen, you will be taken to the checkout screen on Simplex.com, where you will be asked to enter into a form your personal details (email, phone number, date of birth) and your card details.

Binance App for Android - Screenshot 6 - 25 Apr 2019.jpg

Source: CryptoGlobe

Sleeping with the Enemy: Why Institutional Adoption is Bad for Bitcoin

bitcoin, wall street, crypto, nyse

If recent noises coming out of Wall Street are anything to go by, it looks like 2019 is shaping up to be the year of the institutions for Bitcoin and cryptocurrency.

However, the arrival of the institutions as they stampede over that hill represents a double-edged sword. On the one hand, prices will almost certainly pump in the short to medium term, even if just by association alone.

On the other hand, we appear to be in the process of welcoming into our beds the very enemy that cryptocurrency was set up to defeat – the old, deep-rooted bloodlines of the financial elite.


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So yes, the institutions are absolutely coming to crypto, and if you think that’s a good thing, then this may be a good time to ask where your loyalties actually lie.

Cryptocurrency’s Overton Window Threatens to Get Smaller

gemini bitcoin crypto exchange

Gemini, the crypto exchange founded by the Winklevoss twins, is touting its status as a “regulated” platform to lure institutions. | Source: Shutterstock

The Overton window refers to the range of ideas that are permitted to be discussed in the public sphere. The topics outside the window aren’t necessarily banned or censored – they’re just buried so deep that most people don’t know they exist. Not until years later when you stumble across them in some shady corner of the internet, usually presented in the form of a rouge-colored pill.

As has already been witnessed in the r/bitcoin subreddit, when people have a vested interest to protect, they will quite happily make adjustments to the length and breadth of the Overton window to keep its range of view to their liking.

Deleting unfavourable comments from a crypto subreddit isn’t all that surprising, especially given how much rabid coin holders want to protect their investments. But there’s ample evidence to suggest that the rampant censorship on r/bitcoin began only when the institutions arrived.

Those institutions are the financial backers behind Bitcoin’s leading development group – Blockstream. They include AXA Venture Partners, an investment wing of AXA Group – the second largest financial services firm in the world. Blockstream has helped guide the development of Bitcoin since 2016, and if you didn’t already know that, then it may be because the Overton window has been set up specifically so that you don’t.

Without veering into the Bilderberg conspiracy, the censorship of r/bitcoin offers a taste of how the ‘old money’ institutions react to cryptocurrency’s open-source, decentralized ideals. They laugh, then proceed to take your money.

Recuperation: Absorbing Bitcoin Without Killing It

facebook privacy scandal

It’s hard to believe that Facebook was once hailed as a technological messiah. Will crypto suffer a similar fate? | Source: JOEL SAGET / AFP

“Whoops! The web is not the web we wanted in every respect.”

Those words were uttered by Sir Tim Berners-Lee earlier this year, as the man who invented the World Wide Web bemoaned the fact that the original dream of the internet had not come to fruition.

Berners-Lee was comparing the early 1990s notions of what the internet promised to be – free, open, anonymous, decentralized – with the internet we’ve come to know today – censored, controlled, tracked, and spied upon, thanks to the collusion of governments and big tech corporations.

Note: the internet didn’t need to be destroyed to have its disruptive potential neutralized; it only had to be brought round to the accepted way of doing things. This is a process which has happened often enough to gain its own name – recuperation, defined as:

the process by which politically radical ideas and images are twisted, co-opted, absorbed, defused, incorporated, annexed and commodified within media culture and bourgeois society, and thus become interpreted through a neutralized, innocuous or more socially conventional perspective.”

Some Bitcoin enthusiasts were predicting a fate of recuperation for the crypto space back in 2014, such as this early Bitcoin miner by the name of Stefan Molyneux.

Zooming in on the internet analogy, in 2011 Facebook was being hailed as a technological messiah for the inadvertent role it played in helping to organize the Tahrir Square protests in Egypt. Fast forward a few years, and Mark Zuckerberg’s social network has become one of the biggest threats to privacy in internet history.

Crypto is the Cure: But Will We Take Our Medicine in Time?

bitcoin crypto

Bitcoin’s future success or failure as a tool of freedom will not come down to the efficiency of its technology, but whether or not people can step up to the responsibility of being their own caretaker. | Source: Shutterstock

The only way to avoid the snare of the banksters, the globalists, the mainstream, the man – whoever it may be – is to become independent and self-sufficient enough that we no longer need to buy what they’re selling. Under those conditions, no amount of propaganda or salesmanship would have an effect, since there would be no gaping hole left in our lives for them to fill.

The ears of libertarians should be picking up about now, and rightly so. The plight of libertarianism as a political ideology is very analogous to the plight of Bitcoin in its quest to liberate the masses from financial bondage.

The fate of libertarianism depends not on its efficacy as a system of governance, but rather on the ability of the average citizen to live up to its ideals. Likewise, Bitcoin’s future success or failure as a tool of freedom will not come down to the efficiency of its technology, but whether or not people can step up to the responsibility of being their own caretaker.

In today’s culture of dependence, the prospect of either of these eventualities coming to fruition seems slim. The education required to foster this new mentality of independence isn’t found in the public school system. If the sudden increase in Bitcoin’s use in Venezuela is anything to go by, then as is often the case as we look through history, we may first need to suffer catastrophe before we can see where we’ve gone wrong.

Perhaps a catastrophe similar to, or worse than, the one which caused a cipher named Satoshi Nakamoto to commence work on Bitcoin in 2008.

“03/Jan/2009 Chancellor on brink of second bailout for banks.”

Bitcoin’s Future is Not Set – its Fate is what it makes for Itself

bitcoin, institutional investor

It’s unlikely that the established financial order will just saddle up and play along with the quasi-anarchist rules set up by a freakish band of coders and cypherpunks.| Source: Shutterstock

Look, if the institutions arrive and all they do is use cryptocurrency to diversify and boost their pension funds, then all is well. Prices will increase through increased demand and exposure, and all of us early adopters will reap the benefits of this adoption in the long run.

It’s unlikely, however, that the established financial order will just saddle up and play along with the quasi-anarchist rules set up by a freakish band of coders and cypherpunks. Yes, they’ll use the technology, but that doesn’t mean they’ll play by its rules.

This has been seen already as firms like JP Morgan and Facebook turn to creating their own cryptocurrencies – based on their own private protocols, with their own self-tailored rules. Strangely enough, this could turn out to be the most amicable solution between the cryptosphere and the institutions – they have their ‘cryptos,’ and we keep the real thing.

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

Source: Sleeping with the Enemy: Why Institutional Adoption is Bad for Bitcoin

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