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El Salvador Announces Plans for Bitcoin City

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El Salvador’s Bitcoin Rollout = Investors king

The President of El Salvador, Nayib Bukele announced on Saturday that the country has kicked off plans to build a new “Bitcoin City”. The new city will be built near a volcano, and will be funded by the cryptocurrency after which it is named.

Like any other city, it will have entertainment, usual services, residential areas, commercial areas, restaurants and even an airport. However, it will be built near the Conchagua volcano in the South-Eastern part of the country.

President Bukele announced that the city’s construction will begin as soon as 2022, and the city will not have any taxes apart from VAT (Value Added Tax).

El Salvador was the first country in the world to officially pass a law that allows Bitcoin to be accepted as a legal tender in the country. However, this move was not positively received by some members of the country’s population.

In September, thousands of the country’s citizens and/or residents hit the streets to protest against the law, showing their disapproval of the country’s decision. The protesters made known their fears that introducing the cryptocurrency into the country could lead to national instability. In order to allow citizens make use of the cryptocurrency, the country has also launched a bitcoin wallet.

Apart from the construction announcement, El Salvador also has plans to raise around $1 billion in a partnership with Blockstream, a digital assets infrastructure company. Half of the money will go towards buying bitcoin, while the other $500 million will go towards energy as well as bitcoin mining infrastructure, according to the government.

Mining is an energy-centric process of creating new bitcoin by solving cryptographic puzzles. The country’s government says that it plans on using geothermal energy obtained from the volcano to power the mining process.

Chief Strategy Officer at Blockstream, Samson Mow said that the bond has a five-year lock up which will take about $500 million worth of bitcoin off the general market for that time period. Blockstream also announced that those who invest in the bond will receive an annual special dividend for their investment.

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Binance CEO Forecasts Bitcoin Surge Beyond $80,000 on Institutional Inflows

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Binance Chief Executive Officer Richard Teng has set his sights on Bitcoin surging beyond the $80,000 price level on the back of rising institutional investments into crypto-backed exchange-traded funds (ETFs).

Speaking at an event in Bangkok on Sunday, Teng highlighted the significant impact of the launch of Bitcoin ETFs in the United States earlier this year.

He noted that this development has attracted a considerable influx of institutional investors, propelling fresh funds into the cryptocurrency market.

Teng expressed confidence in Bitcoin’s upward trajectory, emphasizing that “we’re just getting started.”

Initially estimating Bitcoin to reach around $80,000 by the end of the year, Teng now believes that the cryptocurrency’s price will surpass this milestone.

He attributed this bullish outlook to a combination of decreasing supply and sustained demand within the market.

However, he cautioned that the rally wouldn’t be without its fluctuations, suggesting that the market’s ups and downs would ultimately benefit its overall health.

Bitcoin has already surged by an impressive 56% this year, reaching a record high of nearly $73,798 last week.

Despite concerns among some investors about a potential bubble, Teng remains optimistic about Bitcoin’s future trajectory.

Teng’s forecast comes in the wake of his appointment as CEO of Binance, succeeding co-founder Changpeng Zhao in November following the company’s $4.3 billion settlement with US authorities.

With relentless inflows into US spot Bitcoin ETFs since their approval in January, Teng expects further institutional adoption in the near term, with more endowments and family offices anticipated to increase their allocations into Bitcoin ETFs.

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Bitcoin Retreats from Record Highs Amid Debate Over Market Speculation

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The cryptocurrency retreated from its recent record highs, igniting a debate over the speculative fervor gripping global markets.

In Asian trading on Friday, Bitcoin plummeted by as much as 5.6%, shedding its gains from the previous day when it reached a new pinnacle of nearly $73,798.

Despite recovering slightly to trade at $67,300, the retreat has triggered concerns about the sustainability of the crypto bull run.

The moderation in Bitcoin’s surge, alongside a similar trend in other top cryptocurrencies like Ether, BNB, and Solana, reflects a broader shift in investor sentiment.

With both Bitcoin’s ascent and the performance of the top 100 tokens hovering around 60% for the year, market participants are reevaluating their risk appetites amidst a backdrop of escalating inflationary pressures.

In a Bloomberg Television interview, Bank of America Corp.’s Chief Investment Strategist Michael Hartnett sounded alarms, likening the market’s euphoria to the characteristics of a bubble, particularly evident in the technology sector’s “Magnificent Seven” stocks and the soaring highs of cryptocurrencies.

The debate over market speculation is gaining traction on Wall Street, with questions looming about the vulnerability of various asset classes to a potential pullback.

Proponents of Bitcoin point to fundamental supports, such as significant net inflows into US exchange-traded funds and an impending reduction in token supply growth.

However, Bitcoin’s stumble coincided with a surge in US yields and the dollar following a report revealing a spike in producer prices, exacerbating concerns about the Federal Reserve’s ongoing efforts to rein in inflation.

Also, data from Coinglass indicates a rise in caution within the derivatives market, with a notable increase in liquidated bullish crypto wagers and a slump in funding rates for Bitcoin perpetual futures, favored by speculators.

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BTC Rally Surges 70% in 2024, But Millionaire Creation Slows Compared to Previous Uptrends

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Bitcoin (BTC), the world’s most dominant cryptocurrency, has sustained its rally in 2024, surging by 70% to new record highs above $72,000.

This year’s rally marks another milestone for the leading cryptocurrency following a 155% surge in the previous year from the depths of a bear market.

However, despite the surge in prices, the creation of new Bitcoin millionaires has slowed compared to previous uptrends.

According to data tracked by Paris-based Kaiko, less than 2,000 millionaire wallets, defined as wallets holding $1 million worth of Bitcoin, are being created daily.

This figure is lower than during the last bull run, where over 4,000 millionaire wallets were created daily, along with more than 2,000 wallets holding $10 million balances.

Analysts suggest several factors contributing to this slowdown.

Firstly, new capital may have yet to fully enter the market. Also, large investors, known as whales, may be taking profits as Bitcoin reaches new highs.

Another factor could be that whales are storing their holdings with custodians rather than in personal wallets.

Despite the slower growth rate of new millionaires, market consensus remains optimistic about Bitcoin’s future trajectory.

With Wall Street’s increasing embrace of Bitcoin, particularly through spot exchange-traded funds (ETFs), many believe that the bull run is still in its early stages.

Continued inflows into ETFs, combined with the anticipated supply reduction from the upcoming halving event, could drive prices even higher. Some analysts predict that Bitcoin could reach $150,000 and beyond in the coming months.

However, signs of caution emerge as the gap between liquidity on the buy and sell sides widens, suggesting that investors may be looking to take profits near record highs.

The overall sentiment in the cryptocurrency market remains bullish, with Bitcoin’s rally showing resilience and strength in the face of market dynamics.

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