Between China, El Salvador and Paraguay: A Raging Week For Bitcoin

Unfortunately, it was another challenging week in the cryptocurrency market, though this can only be said about the developments in terms of price. Elsewhere – adoption seems to be booming, especially when it comes to Bitcoin.

Starting off with the price – bitcoin is currently trading at around $33,000, down about 13% in the past seven days. The cryptocurrency started off relatively flat, but on Monday, things took a turn for the worse, as BTC dropped from $36K down to $32K. This happened as the third-biggest bank in China announced a bank on crypto.

Then, on Tuesday, things escalated even more, and BTC dropped to below $30,000 for the first time since January 2021. Even though the price stayed there for just a few hours, if not minutes, this had the market trembling. Fortunately, BTC bounced by over $6,000, and by Wednesday, we were back above $34K. It’s been a few days of general indecisiveness ever since.

Altcoins look no better in comparison. Over the past week, Ethereum lost more than 22%, BNB – 18%, Cardano – 13%, XRP – 25%, and Polkadot’s DOT is down by a steep 33%. This had Bitcoin’s dominance over the entire market at over 45%.

Elsewhere, the entire community, perhaps not only in crypto but in tech, in general, was shaken by the news that John McAfee – legendary internet tycoon and founder of the McAfee Anti-virus, was found dead in his prison cell in Barcelona. This happened on the same day Spain’s High Court allowed for him to be extradited to the US.

Depressing price action and tragic news of McAfee’s death aside, the President of El Salvador revealed that the law pronouncing Bitcoin a legal tender on September 7th. In addition to that, the government is airdropping $30 worth of BTC to each one of its adult citizens.

Last Friday, an official from Paraguay also confirmed that the country will produce cryptocurrency regulation in July.

Additionally, renowned VC a16z revealed a $2.2b fund focused on cryptocurrencies. In other words, the world of digital assets shows no signs of slowing down, and yet the prices continue to depreciate – perhaps, though, just for a period? Time will tell.

Market Data

Market Cap: $1352B | 24H Vol: 116B | BTC Dominance: 45.4%

BTC: $32,900 (-13.6%) | ETH: $1,832 (-23%) | XRP: $0.628 (-25.5%)

This Week’s Crypto Headlines You Better Not Miss

John McAfee Reportedly Found Dead After Spain’s High Court Approved Extradition to the US. The cryptocurrency community was shaken to its core this week as the legendary entrepreneur and internet tycoon, John McAfee, was pronounced dead in his prison cell in Barcelona. This happened on the day Spain’s High Court approved his extradition to the US.

After Bitcoin Dipped Below $30K: Is Bear Market Confirmed? Industry Experts Weigh In. Bitcoin dipped below $30,000 this week – for the first time since January. While the cryptocurrency has recovered a bit since then, we reached out to some of the industry’s experts to learn whether or not they think the bullish trend for BTC has reversed.

Citizens of El Salvador To Receive $30 in Bitcoin as the Law Will be Implemented In September. The President of El Salvador – Nayib Bukele – revealed that the government will airdrop $30 worth of bitcoin to every citizen of the country. Moreover, the law turning bitcoin in legal tender will officially come in effect on September 7th.

VC Giant Andreessen Horowitz Will Launch a $2.2 Billion Cryptocurrency Fund. The venture capital giant, Andreessen Horowitz, announced its intentions to launch a new fund focused on the cryptocurrency industry with a whopping $2.2 billion of capital. A16Z plans to double down on the industry and get involved even further.

Bitcoin Dumps to $32K as China’s Third-Largest Bank Announced a Ban on Crypto Usage. A new wave of worrying news from China came this week. The country’s third-largest bank (which is also one of the largest in the entire world) announced a ban on cryptocurrency usage. This sent the price of bitcoin down to $32,000 at the time.

Paraguayan Official Confirms: In July, We Legislate Bitcoin. An official from Paraguay – the Deputy of the Nation, Carlos Antonio Rejala Helman, said that the country plans to start working on an important project which includes Bitcoin and PayPal. Now, the official confirmed that new legislation in regards to Bitcoin will arrive in July.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Cardano, and Polkadot – click here for the full price analysis.