While the leading crypto got a boost on Wednesday after news that lawmakers in El Salvador voted to approve bitcoin as legal tender, its price remains nearly 40% below highs of around $60,000 from as recently as a month ago.
“This is an unusual development,” said the J.P. Morgan team. “And a reflection of how weak bitcoin demand is at the moment from institutional investors that tend to use regulated CME futures contracts to gain exposure to bitcoin.” The second red flag is the low share of bitcoin in the wider crypto market. The same strategists wrote in May that the sharp decline in the share of bitcoin during April and May—from around 60% towards 40%—was a bearish signal. They said that it echoed the individual investor-driven “froth” of December 2017—when the share of bitcoin fell from around 55% to below 35%.
U.S. President Joe Biden and British Prime Minister Boris Johnson are set to ease transatlantic COVID-19 travel restrictions. With Biden in the U.K. for this week’s Group of Seven meeting, the two leaders are expected to announce a new task force with the goal of reopening U.S.-U.K. travel as soon as possible.
“First, it was the reopening, then tech, then EVs, then meme stocks, then tech, and now meme stocks again,” Batnick said. “I expected trading to die down once the economy reopened and people started leaving their homes. I was wrong. This is here to stay.”Farmers with renewable energy sources, like those run off cow manure, can make 10 times more money running crypto mining machines than from selling energy to providers.