Today, the price of Bitcoin surged to hit $41,076 on Coinbase, last seen on May 21st.
While up more than 32% from last week’s low of $31,000, it’s hard to know if the cryptocurrency will be able to continue its way up towards the all-time high of $65,000 or people will use this bounce to exit after the recent sell-off.
For now, the market is enjoying greens today, which comes packed with a lot of good news.
For starters, MicroStrategy announced on Monday the completion of its $500 million offering of 6.125% senior secured notes due 2028. This will be used to buy even more Bitcoin and add to the company’s stash of 92,079 BTC that are being held in a newly formed subsidiary, MacroStrategy LLC.
MicroStrategy shares are also enjoying an uptrend, going past $600, last seen in early May. The company has yet to buy BTC with the latest proceeds.
— Cheds (@BigCheds) June 14, 2021
As we reported today, billionaire investor Paul Tudor Jones is very bullish on Bitcoin as a portfolio diversifier and wants to have 5% of his portfolio in Bitcoin, the same percentage as gold, cash, and commodities.
“So, I like that idea of investing in something reliable, honest, secure, and 100 percent certain.” “Bitcoin has an appeal to me in being able to invest in certainty.”
PTJ’s net worth is $7 billion, which would put this 5% at $350 million, while his hedge fund Tudor Investment Corporation has about $44 billion assets under management (AUM) which would put this 5% at $220 million, not including his 2% Bitcoin allocation from last year.
Market’s added so many participants in a year people aren’t even aware of his thesis he published at 10k last year with a half baked fractal. pic.twitter.com/cN14LRD0Ff
— Hsaka (@HsakaTrades) June 14, 2021
The hedge fund manager is paying close attention to the Federal Reserve’s two-day policy June meeting this week, which is scheduled to conclude Wednesday.
According to Jones, if the Fed treats recent higher consumer prices with nonchalance, that is the “green light to bet heavily on every inflation trade” — “then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold,” he said.
But if they throw a “taper tantrum,” that would mean correction, but “that doesn’t necessarily mean it’s over,” he added.
According to Goldman Sachs, it’s too early for Fed Chairman Jerome Powell to begin the “taper clock,” they expect the first hint to be delivered in August or September.
“Powell likely agrees with Governor Brainard and President Williams that the labor market has not yet come far enough,” noted GS.
Additionally, Tesla CEO Elon Musk, who sent the prices crashing last month, helped bolster the positive sentiments after he said the electric car maker would accept Bitcoin payments once miners start using 50% clean energy.
Yes its a lot of electricity but its still “less than the global ‘phantom’ electricity consumption from electronics that are left plugged in while in standby mode” https://t.co/SI7xMHUTTN
— Peter Van Valkenburgh (@valkenburgh) June 14, 2021
As we reported, the world’s sixth-largest, $10 trillion economy India, a G20 member, is also planning to classify the cryptocurrency as an asset class.
Already, El Salvador has become the world’s first country to declare Bitcoin legal tender. While using BTC for payments, the country will also use volcanic geothermal energy to mine the cryptocurrency.
Now, the Central American Bank for Economic Integration, which is made up of 17 member states, is sharing their support for El Salvador’s Bitcoin move, calling it a “really big deal,” adding, “we’re really proud that they’ve made us part of this new policy.”
“The signal that I want to leave you today is that the BCIE is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use,” said president Dante Mossi.
He further said that BCIE would work with the Salvadoran Government “because it is a modern way of doing business.” Though being the first country to adopt BTC as widely is a challenge, they would “take it head-on and find the best way to protect the user,” Mossi added.
This article is Originally posted on CoinCentral.com