Weekly Bitcoin Review

Here is our latest weekly Bitcoin review. The leading cryptocurrency in market cap continues to generate headlines.

Narenda Modi, Indian PM’s Twitter hacked

On Sunday, Narenda Modi, current Prime Minister of India, tweeted “India has officially adopted Bitcoin as a legal tender.” The tweet then proceeds to say that India has bought 500 BTC and will distribute them to all citizens. A very suspicious looking link follows at the end. PMO India, the official twitter of the Prime Minister’s office, had to issue a warning.

With the recovery of his account, the tweet is no longer available for viewing on Modi’s Twitter. This tweet comes after several months of news regarding cryptocurrency regulations in India. Modi has a significant social media following, and although the tweet was only up for an hour, it still caused confusion on social media over the state of Bitcoin in India. Currently, Bitcoin is not legal tender in the Republic of India.

Elon Musk named Time’s Person of the Year

Elon Musk, an extremely influential figure in the cryptocurrency industry, is Time’s Person of the Year for 2021. The announcement came on Monday morning. Musk is CEO of Tesla and SpaceX, both of which have Bitcoin in their company investment portfolios. Musk has received criticism over the last year for potentially manipulating the market with his tweets. In his interview with Time, Musk states, “Markets move themselves all the time, based on nothing as far as I can tell. So the statements that I make, are they materially different from random movements of the stock that might happen anyway? I don’t think so.”

It is still up in the air whether Musk’s impact on the crypto industry is negative or positive. However, there is no denying that he brings great attention to the cryptocurrency industry, more specifically DOGE and BTC. Tesla currently owns 42,000 BTC at an average cost of $31,700. Bitcoin currently sits at $47,000. With Tesla boasting the second highest BTC portfolio, Microstrategy has the biggest, there is no denying Elon Musk’s contribution to the growth of cryptocurrency.

Only 10% left to mine

90% of the 21 million total BTC supply is now in circulation. There are still around 2 million coins left to be mined, and that won’t be fully completed until past the year 2100. While the total number of BTC is 21 million, and roughly 19 million are in circulation, estimates project the real number to be less. Satoshi Nakamoto, creator of BTC, holds 1 million in an untouched wallet. In addition, due to lost keys or morbid factors, there are wallets with BTC that can never be recovered. While this isn’t great for the volume of trading, it does help ensure some price supports for the asset.

Is $40,000 Bitcoin coming?

BTC saw a price dip to $45,894.85 this morning, the lowest price the asset has seen in the last week. The asset has since somewhat seen a recovery, rising to $46,700. However it is still down over 4% on the daily chart. Bullish predictions in October and November were saying $75,000-80,000 range at this time of year, and that BTC would hit $100,000 before the end of 2021. Those predictions have since been pushed back, with a Bitcoin price right in the $53,000 area seeming more likely by the end of the year. $47,000 is a very important price for the support of Bitcoin, if the asset sees a daily close below this level, it will continue to go down slightly more. It is highly unlikely that Bitcoin will drop below the $40-42,000 range, because of an immense amount of support that has built at that level. 

There being so much fear in the market is a good sign that the market isn’t trending towards bearish yet. Usually bear markets trigger when everyone is up on their gains and accumulating a larger portfolio even though the price has reached or is nearing all time highs. As of right now the market seems to be making needed corrections and whales are shaking out some smaller fish. The bull run has yet to end.