Bitcoin rebounded on Monday after its value was halved over the weekend as China reported a harder position against the cryptocurrency.
According to the prices tracked by Coindesk, Bitcoin rose about 15% on Monday afternoon, trading around $ 37,000 per coin. The world’s largest cryptocurrency fell to $ 31,000 on Sunday.
Still, the large companies holding Bitcoin seem to be on the long term.
Bitcoin’s weekend slide began after the Chinese and US governments both signaled a possible regulatory crackdown on the cryptocurrency market. The volatile swings were also fueled by comments from Tesla CEO Elon Musk last month.
CRYPTO TRADING PLATFORM CEO ON BITCOIN PRICE: ‘LITTLE GUY SQUEEZED OUT’
Musk, a proponent of cryptocurrencies, recently indicated that Tesla will hold on to its $ 1.5 billion Bitcoin investment made earlier this year despite the volatility. The electric vehicle maker is among the largest holders of Bitcoin companies.
However, Musk’s decision to reverse course on accepting the world’s largest cryptocurrency as a method of payment for Tesla’s electric vehicles, as well as its recent criticism of Bitcoin mining’s reliance on fossil fuels and “insane” energy consumption, seem to suggest that the company remains at a stalemate as to whether she will buy more.
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Square, another major holder of Bitcoin, also recently did an about-face on its investment.
Square CEO Jack Dorsey said on the company’s fourth quarter earnings call he was ‘doubling’ his cryptocurrency bet by purchasing an additional 3,318 bitcoins worth $ 170 million , adding to its initial investment in October of 4,709 bitcoins of a total value. of $ 50 million.
However, Square CFO Amrita Ahuja recently told Financial News that the company has no plans to buy more Bitcoin after losing $ 20 million on its $ 220 million investment in the cryptocurrency in the last quarter.
Ahuja noted that there were “a lot of other opportunities” for Square to “learn with Bitcoin” and that the company was still “evaluating” the possibilities in the space.
“I think we would be customer driven,” Ahuja added. “As we see the evolution of the Bitcoin product or crypto products in general, I think we will be doing further assessments at this point. “
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A Square spokesperson told FOX Business on Monday that its Bitcoin strategy has not changed and that it continues to assess its investment on an “ongoing” basis.
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Meanwhile, business intelligence company MicroStrategy is taking the opposite approach.
The company now has $ 2.2 billion in Bitcoin after leveraging its investment last week with a purchase worth $ 10 million.
Saylor told FOX Business’s Charles Payne last week that he was not concerned about recent volatility or the Internal Revenue Service announcement that individuals will have to report cryptocurrency transfers over $ 10,000. .
“Some people might be depressed about it, but if you put out a press release saying the IRS wanted to pay taxes on your stocks, it wouldn’t crash the stock market. So that’s actually good news, ”Saylor said. “They are only normalizing the status of cryptocurrencies and Bitcoin. ”
Saylor added that a digital version of the dollar will be essential in the future to help maintain its status as a global reserve currency and that Bitcoin will be the most powerful digital asset to do so.
« [Bitcoin] will be the underlying digital currency network that ties everything together, ”Saylor said.
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Federal Reserve Chairman Jerome Powell recently said the agency plans to play a “leading role” in developing international standards as central banks around the world delve into crypto. change. Powell noted that digital currencies will “complement” rather than replace the dollar.
The Fed also plans to step up its research on central bank digital currencies, or CBDCs, working with the Bank for International Settlements’ Payments and Market Infrastructure Committee and the G7 to ensure that the United States keep abreast of developments abroad.
The Federal Reserve Banks of Cleveland and Atlanta will also launch initiatives to ensure that vulnerable and cash-based populations can securely access and benefit from digital payments and that the design features and delivery approaches of CBDCs can expand access to people who do not currently use traditional financial services.
The Boston Federal Reserve is also partnering with the Massachusetts Institute of Technology (MIT) Digital Currency Initiative on Project Hamilton to create and test a hypothetical digital currency platform, MIT, and the Boston Fed plans to release. a white paper on the progress of the project next quarter.
Additionally, Powell said the Fed will increase its public engagement by issuing a discussion paper on the topic later this summer, which solicit public comment on a range of issues related to payments, financial inclusion, data privacy and information security of digital currencies.