As Bitcoin begins to bounce back, we look at the factors driving the uptick.
U.S. Treasury Secretary Janet Yellen has warned that countries worldwide are moving away from the U.S. dollar - as the spiralling $34 trillion U.S. debt pile fuels fears of collapse - with Bitcoin and crypto slowly chipping away at dollar dominance (Forbes).
Bitcoin’s mining profitability has plunged as operations become more challenging. Industry expert Kurt Wuckert has expressed his concerns regarding the Bitcoin market and warned against investing in mining, citing uncertainties in the industry. The mining industry is experiencing a change in the dynamics of mining operations, which is becoming more challenging. The high levels of network hash rate have led to changes in mining profitability even though crypto has record trading values (Cryptopolitan).
Stacking investment firm Metaplanet has purchased another 21.88 Bitcoin, bringing the Japan-based firm’s holdings to 225.6 Bitcoin, valued at $14.6 million. The recent purchase, combined with Bitcoin’s 4.4% price rise over the last 24 hours, has fueled a surge in Metaplanet share prices—up 25.8% to $0.74 (117 yen) in the opening two and a half hours on the Tokyo Stock Exchange on July 16 (Coin Telegraph).
J.D. Vance, the venture capitalist turned politician tapped as running mate by former President Donald Trump, owns between $100,001 and $250,000 in Bitcoin, according to his latest federal financial disclosure. The Ohio Senator disclosed holding Bitcoin on Coinbase in his mandated Annual Report for 2022, filed in October 2023 (The Block).
Bitcoin traders expect prices to touch as much as $70,000 in the near term as sentiment around the broader crypto sector bumps ahead of the US elections and selling pressure from key wallets subsides. “The rebound in Bitcoin price shows the market has a more optimistic outlook in the near-term macro environment,” shared Lucy Hu, senior analyst at Metalpha (Coindesk).
Senator Bob Menendez, who previously called Bitcoin “an ideal choice for criminals”, has been found guilty on all 16 counts in his corruption trial. Federal prosecutors accused Menendez of accepting bribes, acting as a foreign agent for Egypt, obstructing justice, and extortion. The jury’s decision came after a two-month trial that exposed Menendez’s involvement in receiving cash, gold bars, and a luxury car in exchange for political favours (Bitbo).
The German government’s sale of its significant Bitcoin position could be held up in years to come as one of the worst financial decisions by a sovereign country since the UK started to sell gold reserves at the bottom of a 20-year bear market. UK Chancellor Gordon Brown’s decision 25 years ago is still talked over incredulously by analysts, partly because Brown told the market precisely when he would begin to sell the gold (CryptoDaily).