Dogecoin's Growing Adoption, El Salvador Buys Bitcoin Dip, Institutions Prefer Ethereum, Twitter Tips, China Warning: Crypto Week In Review
This week proved volatile for cryptocurrencies amid the Evergrande crisis, subsequent recovery amid a string of bullish news and the markets falling again over the news coming from China. Here's a recap of the highlights:
Cramer ‘Begs’ Crypto Investors To Cash Out: CNBC “Mad Money” host Jim Cramer said on Monday that investors should book profits in cryptocurrencies, pointing to the crisis-hit Chinese real-estate giant Evergrande.
“Don’t let it become a loss. Sell some, stay long the rest, then let’s wait and see if China changes its attitude toward an Evergrande bailout,” the former hedge fund manager said.
Reducing Dogecoin Fee ‘Super Important:' Tesla Inc (NASDAQ:TSLA) CEO Elon Musk said on Wednesday that lowering Dogecoin (CRYPTO: DOGE) fees to make transactions like purchase of movie tickets viable was “super important.”
Musk’s comments came after AMC Entertainment Holdings Inc (NASDAQ:AMC) CEO Adam Aron held a poll on his Twitter feed asking his followers if the cinema chain should accept DOGE. More than three-fourths of those polled voted in favor of DOGE acceptance.
The feature had been under testing for some time and is being dubbed “Tips.”
The Jack Dorsey-led company said it is also planning to support authentication for non fungible tokens by letting users connect their cryptocurrency wallets.
WSB Makes Crypto Moves: Popular retail investor forum on Reddit, r/WallStreetBets, on Thursday launched r/WallStreetBetsCrypto.
The forum acknowledged, “With so many people trading crypto now, times have changed and crypto does seem to belong [on r/WSB].”
Ethereum, The New Darling of Large Investors: JP Morgan analysts said in a note this week that institutional investors are more interested in ETH futures than BTC ones.
The analysts pointed to BTC futures on the Chicago Mercantile Exchange which traded below the price of spot BTC, while on the other hand ETH futures premiums rose to 1% over ETH prices.
“This is a setback for bitcoin and a reflection of weak demand by institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin,” wrote the analysts, as reported by Business Insider.
Dogecoin Adoption On the Rise: DOGE adoption is growing faster than ever despite a slump in prices recently, as per CryptWerk data.
The Shiba Inu-themed coin can now be spent at 1,704 merchants, a rise of 41.3% compared to 1,206 merchants at end of January and 61.63% higher than in January 2020, when it was accepted by 640 merchants, as per the data.
This week, commercial real estate tokenization company RedSwan announced two real-estate deals with a combined value of $384 million that will feature DOGE as a payment option.
El Salvador Buys BTC Dip: On Monday, El Salvador’s President Nayib Bukele said in a Facebook post that proposed reforms sent to the country’s Congress would not decriminalize abortion, legalize same-sex marriage, or permit euthanasia, as per a Reuter’s report. On the same day, the president said the nation had purchased 150 BTC, taking the country’s total holdings to 700 BTC worth nearly $32.05 million at the time.
The president’s announcements were noted by crypto Twitter, with some users questioning the stance taken by the leader on various political and human rights issues.
China Expands Crypto Crackdown: China reiterated its latest warning that it's illegal for financial institutions and payments platforms to engage with cryptocurrency transactions, leading to a cryptocurrency market plunge. The earliest of such notifications issued by the country's central bank date back to 2013.
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