BitcoinBites: 5 BTC stories you should know – September 23rd, 2021
‘Extreme fear’ as Bitcoin price falls below $40K... and then bounces
The price of Bitcoin (BTC) has slumped below $40,000 for the first time in six weeks.
The slide took place near the close of the day on Tuesday, with BTC prices having drawn down by 16% from nearly $47,300 at the start of the day to tag a local low of $39,650 at roughly 9 pm UTC. The move marked a 25% retracement from BTC’s local highs above $50,000 on Sept. 7.
However, the pullback came after Bitcoin had gained more than 80% since hitting $29,300 on July 20 and then heading into early September’s highs. Bitcoin has since recovered to trade just above $42,000.
Bitcoin was not alone in suffering a sharp price decline on Tuesday, with 29 of the top 30 crypto assets by market capitalization suffering a 24-hour drawdown, according to CoinGecko.
Statue Of Bitcoin Inventor, Satoshi Nakamoto Unveiled In Hungary
Hungarian Bitcoin enthusiasts unveiled a statue in Budapest last Thursday that they say is the first in the world to honour Satoshi Nakamoto, the enigmatic inventor of Bitcoin.
The life-size bronze monument shows a person wearing a hoodie. The choice of the garment, which features the Bitcoin logo on its left side, was intended to emphasize Satoshi’s anonymity. It was funded by four Hungarian cryptocurrency organizations.
The statue’s expressionless face has a mirror-like reflective surface due to the golden aluminum. It allow people to see their own reflection, and aims to send the message “We are all Satoshi”.
Bitcoin Mining Firm Genesis Digital Assets Raises $431M to Boost ‘Aggressive Expansion’
This is not Kingsway’s first investment in Genesis. In July, the company led another $125 million funding round to support the mining firm’s “aggressive expansion plans.”
“Bitcoin is going to be the most important technology for financial inclusion of the global poor and unbanked and mining provides security to make this possible. The [Genesis] team has been building highly profitable large-scale bitcoin mining farms for nearly eight years and the industry has only been around for twelve,” Kingsway Capital CEO Manuel Stotz noted at the time.
Bought the Dip: 3rd Largest Bitcoin Whale Purchased $13M Worth of Bitcoin at US $40.5K
After buying another sizeable portion of BTC during the ongoing correction, the third-largest bitcoin whale now holds more than 111,000 coins.
The latest price dump from bitcoin to around $40,000 has enabled the third-largest BTC whale to accumulate more portions of the asset at a discount. In a “buy the dip” moment, the entity has purchased more than $13 million worth of the cryptocurrency.
CryptoPotato has frequently reported the behaviour of this mysterious whale or at least one of their addresses. Back in April, they sold a substantial chunk of their portions when the primary cryptocurrency had skyrocketed to its all-time high levels of above $60,000.
During the subsequent correction, when the asset retraced below $40,000 and even $30,000, the whale resumed its appetite by making several consecutive purchases. Interestingly, almost all of them came when bitcoin had dropped several thousand dollars from the local peaks.
Will Bitcoin Price rally in Q4? Experts and Analysts Say Yes!
The crypto market underwent a severe fall in September after a good bull run in the latter month of August. Bitcoin (BTC) has dropped more than 20% from its September high of US $52,701 to around $42,000 earlier this week.
Over the last decade, September has been a month of high volatility, with Bitcoin and the wider crypto ecosystem delivering negative returns. Retail investors, on the other hand, should avoid panic selling.
Instead, they should be gearing themselves for the fourth-quarter rally. Several industry analysts point out that the crypto market has traditionally been optimistic in the fourth quarter.
According to popular market analyst Lark Davis, we haven’t reached the peak yet, and Q4 will see several crypto billionaires this year. Davis argued in April, when BTC was trading near its all-time high, that the Bitcoin bull run was just halfway through.
BONUS BITE: Why Would The SEC Approve A BTC Futures ETF?
With Chair of the SEC Gary Gensler so stridently opposed to all cryptocurrencies, why has he hinted that he might approve a Bitcoin Futures ETF? Might it be that he knows the SEC can’t take Bitcoin down? But with Bitcoin futures contracts perhaps it might well be tamed and controlled.
According to Bloomberg Intelligence Commodity Strategist Mike McGlone, the SEC approval of a Bitcoin Futures ETF is just around the corner. In an interview with Daniela Cambone of the Stansberry Investor YouTube channel, he gives the reason:
“Canada is extending a competitive lead over the United States after approving Bitcoin ETFs from 3iQ and Coinshares in April.”
He thinks that lawmakers don’t want to miss out and so they could approve an ETF “potentially by the end of October”. He adds that the ETF would likely be a “futures-backed product” and that this would help to legitimize the asset.
However, it might well be argued in return that wanting to “legitimize” Bitcoin would be the last thing on the agenda of the SEC. The SEC chairman Gary Gensler couldn’t be more anti Bitcoin and cryptocurrencies, referring to them as “private money” and of possibly having a “destabilizing effect” on the monetary system.
So why then is there this expectancy that the SEC will in fact approve a Bitcoin Futures ETF?
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