We continue to see increasingly bullish news from various parts of the Bitcoin community.
Last Week In Bitcoin is a series that discusses the previous week’s events in the Bitcoin industry and covers all the major news and analysis.
Summary of the week
This week has been full of bullish news. As the market seems to be preparing for the end of the year, the good word keeps coming back. From the start-up of the volcanic bitcoin mining operation in El Salvador to a Missouri mayor planning to give households $ 1,000 each in bitcoin, the week was something to see.
Fantastic news from autumn
Monday was a busy day in the Bitcoin sphere, starting with infamous Bitcoin critic and JPMorgan CEO Jamie Dimon saying that Bitcoin could go up 10 times, but he doesn’t care. On the same day, their competitor Morgan Stanley announced that they had more than doubled their investment in the Grayscale Bitcoin Trust to 58,000 shares in the most recent quarter.
As bitcoin tipping picked up on Twitter, Strike CEO Jack Mallers said he would donate any tips he receives on the platform to the Human Rights Foundation. Later on Monday, Miami Mayor Francis Suarez began campaigning for bitcoin miners to switch to nuclear power, a clean and efficient alternative to fossil fuels. He said Miami could become a clean bitcoin mining hub.
El Salvador ended Monday on a high note, revealing that over 2.25 million citizens are now using the Chivo bitcoin wallet, no small feat considering it was only launched three weeks earlier. Coinbase revealed a new feature that allows users to automatically convert their paychecks to Bitcoin on the platform. Finally, the U.S. Senate candidate Blake Masters said the U.S. government should buy a strategic bitcoin reserve.
On Tuesday, the world’s largest Bitcoin payments provider, BitPay, announced a partnership with Verifone to enable its merchants to accept Bitcoin payments. ATM maker Athena also announced that Salvadorans could get their salaries through the company’s ATMs. El Salvador’s President Nayib Bukele also shared a video teaser of the country’s plans to mine Bitcoin using geothermal energy generated by the country’s volcanoes. Rich Dad, Poor Dad author Robert Kiyosaki warned people not to buy bitcoin ahead of the biggest stock market crash in history, referring to an expected stock market crash.
On Wednesday, Elon Musk spoke about crypto regulations in an interview with Kara Swisher and suggested that the US government “do nothing” about regulating Bitcoin and the entire crypto market. Cathie Woods Ark Invest also announced that they had bought Coinbase shares valued at $ 42 million on Tuesday.
Also on Wednesday, Umbrel unveiled its first plug-and-play Bitcoin node, a huge step towards giving users sovereignty. Despite China’s measures against Bitcoin, it was revealed on Wednesday that there are still more than 145 Bitcoin nodes active in China. To wrap up the news for Wednesday, Cool Valley, Missouri Mayor Jayson Stewart revealed plans to give $ 1,000 in Bitcoin to every household in town.
On Thursday, as September drew to a close, El Salvador’s President Bukele announced that the country would be giving anyone who uses the Chivo bitcoin wallet a $ 0.20 per gallon discount on fuel in order to get one more Urge introduction to the Central American nation.
Also on Thursday, Federal Reserve Chairman Jerome Powell officially stated that, contrary to China’s recent ban, the US government would not ban Bitcoin or other cryptocurrencies in the country. It is an important signal to people in the US and around the world who are still cautious about investing in Bitcoin.
On Friday, the Salvadoran government began mining its first bitcoin, which was powered by geothermal energy. Funnily enough, it came just two days after the CEO of the Tehran Stock Exchange resigned after Bitcoin miners were found in the basement of the exchange.
Overall, the past week has been overly optimistic, with the bears likely to go into hibernation for the winter as Bitcoin is expected to break out in the next several months. The only bearish note last week was JPMorgan CEO Jamie Dimon once again spreading FUD despite thinking Bitcoin could very well go up 10x.
At the end of September this week, it’s interesting to see how PlanB’s stock-to-flow model and forecasts released in June came to life. On June 30, he released his model and made some bold predictions that the worst case scenario for Bitcoin would be above $ 47,000 in August and above $ 43,000 in September – both of which turned out to be correct. He predicted Bitcoin above $ 63,000 in late October, above $ 98,000 in late November, and above $ 135,000 in late December. Indeed, bullish worst-case forecasts.
If you understand bitcoin and understand what it represents then it is easy to say that bitcoin will grow tremendously in the years to come. Bitcoin is already up 25% in the last quarter, despite all the FUDs from China. As the year draws to a close, it becomes more and more likely that Bitcoin will prepare for a decent run where it could soar above $ 135,000 and maybe even to $ 300,000 or $ 400,000.
Of course, it’s easy for me to stay bullish every week. Let’s look at the reasons I expect a run. In addition to a whole country adopting Bitcoin (El Salvador) and more and more institutions adding Bitcoin to their balance sheets (thanks to MicroStrategy), there is also the case that Fiat is preparing for one blow in the coming months. The UK’s decision to leave the EU comes back to bite as fuel, food and staff shortages continue to grow and hit the headlines. Then there is the warning from Joe Biden that the US could enter a recession and Janet Yellen warning that the US could run out of money in three weeks.
As the world’s “superpowers” find themselves in increasingly turbulent times, their economies are certain to suffer a blow that will hit 66 dollarized nations around the world and the global economy. Everyone will be looking for alternative, safer investments and this is what Bitcoin is best known for. As more people and companies seek to buy Bitcoin, the supply will dwindle and the price will skyrocket. Simple.
In the last three months of 2021, Bitcoin will hit new all-time highs and is expected to hit six-digit numbers for the first time. Bitcoin is here to stay, and more and more people will realize that it’s their best bet in both good times and bad.
This is a guest post by Dion Guillaume. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.