It was the week we’d all been looking forward to: We’ve spent the better part of the past week with the bitcoin price hovering around the $40,000 mark, with the cryptocurrency briefly approaching $37,000 on Thursday before kicking off its weekend run, which saw it burst over $45,000 a few times as investors pondered: Is this the beginning of the next bull market? Before we answer this question, register yourself here.
The News That Caused All of It
In addition, on Monday, Wells Fargo, the same bank that prohibited customers from purchasing cryptocurrencies in 2019, began giving affluent clients exposure to bitcoin and bitcoin-related assets, according to Reuters. According to reports, although previously having over 4,700 locations worldwide, the fast-food company now has closer to 1,000 locations, with the majority of those locations expected to take bitcoin shortly.
Also, on Tuesday, Google said that it had removed its crypto ad restriction from 2018, which means that businesses would again be able to purchase ads throughout the whole of Google’s ad network. An article published later that day in the Bloomberg Intelligence Report said that Bitcoin is on course to reach $100,000 by the end of the year.
Thursday also brought some intriguing news, rumors claiming that JPMorgan will launch a bitcoin fund to affluent investors. In 2014, Jamie Dimon, the CEO of JPMorgan, said bitcoin was a poor store of value. In 2016, he said bitcoin would go nowhere. In 2017, he called bitcoin a scam. And in 2019, he said he couldn’t care less about bitcoin. It turns out that Bitcoin is unassailable.
However, for most of the week, the market was preoccupied with the contentious US infrastructure bill plan, which contained a portion devoted particularly to regulating tax payments using cryptocurrencies such as bitcoin, among other things. Although talks on the part dealing with bitcoin continued throughout the debate, it seemed that lawmakers would either make amendments in haste or pass the bill as is, which may have disastrous consequences for the United States economy. If bitcoin mining is improperly taxed, miners will flee the nation, consumers will conceal their bitcoin holdings, and the United States would be decades behind the curve.
Although the market did not seem to be very concerned by this, if the law is passed and onerous bitcoin taxation rules are implemented, it may very well serve as a trigger for the onset of the next bear market; of course, this is just my point of view.
Bitcoin Is Preparing for A Surge in Value
For Bitcoin, the last week has been a breath of fresh air, validating my continuous yammering over the previous several months about bitcoin being poised for a pump. I am confident in my prediction that bitcoin will continue to rise in value over the next several months, with a six-digit price tag not being ruled out (even Bloomberg thinks so). Even if there are an a few dips over the next months or years, we’re on the verge of launching into a missile that will lay the groundwork for the finance market of the coming generations. According to the New York times, Bitcoin founder Hal Fin prophesied that a single dollar might another day be valuable $10 million only a week after the networks went up more than a generation later. If you’re not concerned by the fact that bitcoin is now priced in fiat currencies, you’re still looking at a 20,000 percent gain.
I think that the United States infrastructure bill should be closely monitored, not only if you live in the United States or one of its territories. The legislation will have long-term consequences for the whole market if it is passed in its current form — but that is not likely to happen. In a little more than a decade, bitcoin has gone from worth nothing to worth over $1 trillion in market value. Not to mention the platforms and services developed to support bitcoin, its trading, and further development of the cryptocurrency. Bitcoin has spawned a colossal industry that includes media outlets, hardware and software businesses, influencers, investors, and many more.