Bitcoin

Bitcoin prices witnessed a slump with almost 50% from its mid-April high after questions were raised on its energy consumption by Tesla Inc.’s Elon Musk along with a clampdown from China.

El Salvador`s President Nayib Bukele said in a national address on Thursday that a recently passed law making bitcoin legal tender will take effect on Sept. 7, noting that its use will be optional.

El Salvador`s Congress on June 9 approved Bukele`s proposal to embrace the cryptocurrency, making El Salvador the first country in the world to adopt bitcoin as legal tender.

“The use of bitcoin will be optional, nobody will receive bitcoin if they don`t want it… If someone receives a payment in bitcoin they can choose to automatically receive it in dollars,” said Bukele.

Salaries and pensions will continue to be paid in US dollars, said Bukele, without specifying if that included salaries paid to state workers and private sector employees.

Earlier in the day Athena Bitcoin said it plans to invest over $1 million to install some 1,500 cryptocurrency ATMs in El Salvador, especially where residents receive remittances from abroad.

According to Athena Bitcoin`s website, the ATMs can be used to buy bitcoins or sell them for cash.

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Bitcoin prices have gone down below $30,000 for the first time in nearly five months as China’s latest crackdown on cryptocurrencies weighed.

The world’s largest cryptocurrency fell as much as 6.4% to $29,614, its lowest since Jan. 27. As of 1232 GMT it was down 4.2%.

This is a breaking news story. Check back for more details.

London/New York/Tokyo: Bitcoin tumbled on Monday to a two-week low on China`s expanding crackdown on bitcoin mining, as investors grew more uncertain about the future of the leading cryptocurrency.

Bitcoin fell as low as $31,333, a two-week trough, dragging down other cryptocurrencies. It was last down 10.7%, its largest daily percentage loss in a month.

The world`s biggest cryptocurrency has lost more than 20% in the last six days alone and was at half its April peak of almost $65,000. Year to date, it remained up about 11%.

Some bitcoin investors were concerned further losses could be in store due to a chart formation known as a death cross which occurs when a short-term average trendline crosses below a long-term average trendline.

China has been tightening its crackdown on cryptocurrencies. On Friday, authorities in the southwest province of Sichuan ordered bitcoin mining projects to close.

Last month the State Council, China`s cabinet, vowed to clamp down on mining and trading as part of a campaign to control financial risks.

On Monday, China`s central bank said it recently summoned some banks and payment firms, including China Construction Bank and Alipay, urging them to crack down harder on cryptocurrency trading.

“People still react strongly to actions from China that create uncertainty so this is likely to reflect negatively on the bitcoin price,” said Ruud Feltkamp, chief executive officer at at crypto trading bot Cryptohopper.

“China is rolling its own cryptocurrency and has every incentive to have as little competition as possible…I think we will see miners leaving China and relocate where there is spare or cheap energy.”

Data on mining is scarce. Yet bitcoin in China accounted last year for about 65% of global production, according to data from the University of Cambridge, with Sichuan its second-biggest producer.

Agricultural Bank of China (AgBank), China`s third-largest lender by assets, said separately it was following the People`s Bank of China`s guidance and would conduct due diligence on clients to root out illegal activities involving crypto mining and transactions.

Alipay, the ubiquitous payment platform owned by fintech giant Ant Group, said in a separate statement it would set up a regulator monitoring system targeting key websites and accounts to detect illegal crypto-related transactions.

In other cryptocurrencies, ether, the token used for the Ethereum blockchain, dropped to a five-week low of $1,890. It was last down 14.3% at $1,922.05.

Also on Monday, auction house Sotheby`s announced that a rare pear-shaped diamond that is expected to fetch up to $15 million can be bought at an auction next month using cryptocurrencies. It would be the first time a diamond of such size has been offered for public purchase with cryptocurrency.

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Bitcoin tumbled almost 10% on Monday as recent volatility in the cryptocurrency market showed no signs of dampening down, with market players citing jitters over China`s expanding crackdown on bitcoin mining in thin liquidity for the losses.

Bitcoin fell as low as $32,094 to its lowest in 12 days, dragging smaller coins down. It was last down 8.3%, on course for its biggest daily drop in a month.

The world`s biggest cryptocurrency, long plagued by volatility, has lost over 20% in the last six days alone and is down by half from its April peak of almost $65,000. Still, it has still gained over 10% this year.

The drop comes amid a growing crackdown on cryptocurrencies in China, where authorities in the southwest province of Sichuan on Friday ordered bitcoin mining projects to close.

The State Council, China`s cabinet, last month vowed to clamp down on mining and trading as part of a series of measures to control financial risks.

Data on mining is scarce. Yet production of bitcoin in China accounted last year for about 65% of global production, according to data from the University of Cambridge, with Sichuan its second-biggest producer.

Companies that mine bitcoin – an energy-intensive process – typically hold large inventories of the cryptocurrency, with any moves to sell large amounts depressing prices.

“(The) crackdown on Chinese miners might mean that they are offloading coin into a thin market and taking us lower,” said Ben Sebley of London-based crypto firm BCB Group.

China`s central bank said on Monday it had summoned some banks and payment institutions recently, urging them to crack down harder on cryptocurrency trading.

Agricultural Bank of China (AgBank), China`s third-largest lender by assets, said separately it was following the People`s Bank of China`s guidance and would conduct due diligence on clients to root out illegal activities involving crypto mining and transactions.

Smaller rival ether, which tends to move in tandem with bitcoin, dropped as much as 12%, falling below $2,000 for the first time in almost a month.

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Tesla CEO Elon Musk has done it again! Bitcoin prices surged to $40,000, after yet another weekend of price swings following tweets from Tesla boss, who fended off criticism over his market influence and said Tesla sold bitcoin but may resume transactions using it.

Bitcoin has seen an upward trend to Musk`s views for months since Tesla announced a $1.5 billion bitcoin purchase in February and said it would take the cryptocurrency in payment. However, he took a u-turn and later said that the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.

“When there`s confirmation of reasonable (~50%) clean energy usage by miners with a positive future trend, Tesla will resume allowing Bitcoin transactions,” Musk said on Twitter.

Bitcoin rallied more than 9% after that message, breaking above its 20-day moving average, and climbed further in Asia to hit $39,838.92.

It was last up 0.5% at $39,189, straining to escape the relatively tight trading range of this month.

The market was also supported by software company and major bitcoin-backer MicroStrategy raising half a billion dollars to buy bitcoin, said Bobby Ong, co-founder of crypto analytics website CoinGecko.

Bitcoin is up about a third this year but has collapsed from a record peak above $60,000 amid a regulatory crackdown in China and Musk`s apparently wavering enthusiasm for it. Telsa stock is down about 30% since the company`s bitcoin purchase.

Musk`s tweet was made in response to an article based on remarks from Magda Wierzycka, head of cybersecurity firm Syngia, who in a radio interview last week accused him of “price manipulation” and selling a “big part” of his exposure.

“This is inaccurate,” Musk said. “Tesla only sold ~10% of holdings to confirm BTC could be liquidated easily without moving market.”

Musk had tweeted in May that Tesla “will not be selling any bitcoin” and “has not sold any bitcoin,” but investors are keenly awaiting Tesla`s next earnings update – due next month – for any disclosure of changes to its position.

Musk has taken issue with the vast computing power required to process bitcoin transactions and in early June posted messages appearing to lament a breakup with bitcoin.

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The Enforcement Directorate (ED) has finally it has issued a show cause notice to Crypto-Currency Exchange Zanmai Labs Pvt Ltd (WazirX) and its Directors Nischal Shetty and Sameer Hanuman Mhatre for transactions involving crypto-currencies worth Rs 2,790.74 crore, officials said.

This investigation has been initiated by Foreign Exchange Management Act (FEMA) on the basis of the ongoing money laundering probe into Chinese-owned illegal online betting applications.

The official said that during the investigation, it was seen that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore by converting the Indian rupees deposits into Crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.

He said that WazirX allows vide range of transactions with Crypto-currencies(CCs) including exchange of CCs with INR and vice-versa, exchange of CCs, person to person (P2P) transactions and even transfer/receipt of crypto-currency held in its pool accounts to wallets of other exchanges which could be held by foreigners in foreign locations.

The ED official claimed that WazirX does not collect the requisite documents in clear violation of the basic mandatory Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT) precaution norms and FEMA guidelines.

“In the period under investigation, users of WazirX via its pool account, have received incoming crypto-currency worth Rs 880 crore from Binance accounts and transferred out Crypto-Currency worth Rs 1,400 crore to Binance accounts,” he said.

He said that none of these transactions are available on the blockchain for any audit or investigation.

“It was found that the WazirX Clients could transfer `valuable` crypto-currencies to any person irrespective of its location and nationality without any proper documentation whatsoever, making it a safe haven for users looking for money laundering or other illegitimate activities,” he said.

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Bitcoin surged 8.54 % to $36,265 on Wednesday, adding $2,853.31 to its previous close.

Bitcoin, the world`s biggest and best-known cryptocurrency, is up 30.8% from the year`s low of $27,734 on Jan. 4.

Ether, the coin linked to the ethereum blockchain network, rose 2.29 % to $2,566.4 on Wednesday, adding $57.55 to its previous close.

El Salvador became the first country in the world to adopt bitcoin as legal tender after Congress on Wednesday approved President Nayib Bukele`s proposal to embrace the cryptocurrency, a move that delighted the currency`s supporters.

With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt bitcoin, despite concern about the potential impact on El Salvador`s program with the International Monetary Fund.

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El Salvador has become the first country in the world to adopt bitcoin as legal tender after Congress approved President Nayib Bukele`s proposal to embrace cryptocurrency.

With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt bitcoin, despite concern about the potential impact on El Salvador`s program with the International Monetary Fund.

Bukele has touted the use of bitcoin for its potential to help Salvadorans living abroad to send remittances back home, while saying the U.S. dollar will also continue as legal tender.

“It will bring financial inclusion, investment, tourism, innovation and economic development for our country,” Bukele said in a tweet shortly before the vote in Congress, which is controlled by his party and allies.

The use of bitcoin will be optional for individuals and would not bring risks to users, Bukele said, with the government guaranteeing convertibility to dollars at the time of transaction through a trust created at the country`s development bank BANDESAL.

Under the law, bitcoin must be accepted by firms when offered as payment for goods and services. Tax contributions can also be paid in the cryptocurrency.

Its use as legal tender will begin in 90 days, with the bitcoin-dollar exchange rate set by the market.

Cryptocurrency supporters hailed the move as legitimising the emerging asset, but its impact on bitcoin regulation, taxation or adoption in other countries remains to be seen.
Still, there were no immediate signs that other countries would follow El Salvador`s embrace of bitcoin.

“Whether this becomes the first in what becomes a trend and then snowballs, or whether this will be a blip, we will only know through history,” said Brandon Thomas, partner at advisory firm Grayline Group.

Analysts have also said the move could complicate talks with the IMF, where El Salvador seeks a more than $1 billion program.

Bitcoin enjoyed its best day in two weeks, rising as much as 6% to $35,200.

“The market will now be focused on adoption through El Salvador and whether other nations follow,” said Richard Galvin of crypto fund Digital Asset Capital Management. 

“This could be a key catalyst for bitcoin over the next two to three years.”
REMITTANCES

Emerging economies – where bank penetration is much lower than in developed countries and reliance on money transfers from abroad much higher – have quickly warmed to cryptocurrencies.

Outside the United States, countries with the highest crypto production and trading volumes are all developing nations, according to BofA, including China, Colombia and India.

But the use of digital currencies in general can also pose risks for dollarized economies, which have adopted foreign currencies as legal tender, such as El Salvador, it added.

Dollarization “is a major problem for macro and financial stability in many emerging markets, and it could worsen if digitalization facilitates access to foreign currencies,” said David Hauner at BofA.

“The root cause of dollarization is high local inflation, which could worsen, too, if digital currencies prove inflationary.”

El Salvador relies heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of GDP in 2019, one of the highest ratios in the world.

It is not clear what proportion of remittances sent to El Salvador are in the form of bitcoin.

The cryptocurrency offers, in theory, a quick and cheap way to send money across borders without relying on remittance firms typically used for such transactions.
But that has worried financial regulators and policymakers, who warn bitcoin facilitates money laundering and other illicit uses.

Still, its use for remittances is patchy. Converting local currencies to and from bitcoin often relies on informal brokers, while trading often demands technical knowledge.
Bukele says some 70% of people in El Salvador lack access to traditional financial services.

El Salvador will promote training and mechanisms to allow access to bitcoin transactions, the law said. 

Tesla CEO Elon Musk seems to have faced the fire at such catastrophic times as he was targeted by a notorious group of hackers who are liable for committing some of the biggest digital scams in the recent past.

TMZ reported that the anonymous account has caused a lot of grief for different organizations including PayPal, Scientology is now targeting the Tesla CEO.

They released the latest video where they targeted Elon, claiming the power he uses over cryptocurrency markets and the arrogant way he uses it has gone far enough especially as it pertains to Bitcoin, which has reacted uncontrollably to Elon’s words of late.

Anonymous affirms that even though Elon has “positioned himself as concerned about the environment with Tesla’s pivot away from Bitcoin, he doesn’t practice what he preaches within the company itself- hurling many allegations against him and Tesla’s practices at large,” TMZ reported.

The anonymous further slammed Elon on a personal note, saying he suffers from a “superiority complex”- noting he once dubbed himself the “Emperor of Mars” – and that he is hurting working-class people and their prospects by his constant crypto trolling.

Concluding his grievance note, the anonymous added that he thinks “Elon is not a friend to the common man”, something they considered themselves to be.

Elon, recently announced that the company has stopped accepting bitcoin as payment for its cars out of concern- that it will contribute to greater consumption of fossil fuels.

The business magnate and SpaceX founder shared a statement on Twitter on Wednesday about the same. Tesla had only just started accepting bitcoin in late March.

The 49-year-old industrial designer also said that Tesla will no longer sell any more of the USD 1.5 billion stashes of bitcoin it purchased earlier this year. Tesla sold some of that bitcoin in the first quarter of 2021, which wound up helping pad the company’s quarterly profit figures.

Elon has also hyped another cryptocurrency, Dogecoin, which Tesla has not invested in. He has called Dogecoin, which was invented as a joke to satirize bitcoin, his favourite cryptocurrency and “the people’s crypto.”

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San Salvador: El Salvador President Nayib Bukele has announced that he would send a bill to Congress next week to make the bitcoin cryptocurrency a legal tender in the Central American country, in what will be a world first.

Bukele announced the move in a pre-recorded message played on Saturday at the Bitcoin 2021 conference in Miami, Florida, during a presentation hosted by Jack Mallers, founder digital wallet company Strike, reports dpa news agency.

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“Next week I will send to Congress a bill that will make bitcoin a legal tender in El Salvador,” Bukele said.

“In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy,” the President added.

Mallers said he has been working with Bukele to determine the logistics of the move.

“Over 70 per cent of the active population of El Salvador doesn’t have a bank account. They’re not in the financial system,” Mallers said during the presentation.

“They asked me to help write a bill and that they viewed bitcoin as a world-class currency and that we needed to put together a bitcoin plan to help these people.”

As cited by the Strike founder, the bill says that “in order to mitigate the negative impact from central banks, it becomes necessary to authorise the circulation of a digital currency with a supply that cannot be controlled by any central bank and is only altered in accord with objective and calculable criteria”.

The International Labour Organization estimates that six out of every 10 Salvadorans are scraping a living out of the informal economy in the country.

El Salvador`s President Nayib Bukele said on Saturday (June 5) that he will send a bill to Congress next week to make bitcoin legal tender in the country.

“In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy,” Bukele said in a video shown at the Bitcoin 2021 conference in Miami.

Strike, a mobile payments app that launched in El Salvador in March, said in a statement that it welcomed the legislation and was working with the country to make using bitcoin technology a success.

“This is the shot heard round the world for bitcoin,” Strike founder and CEO Jack Mallers was quoted as saying at the Miami conference.

“Adopting a natively digital currency as legal tender provides El Salvador the most secure, efficient and globally integrated open payments network in the world,” Mallers said.

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Bitcoin fell more than 7% on Friday, with tweets by Tesla boss Elon Musk that appeared to lament a breakup with the cryptocurrency again moving markets.

Tesla`s big position in bitcoin and Musk`s large personal following set crypto markets on edge whenever he tweets, and the price fell after he posted “#Bitcoin” https://twitter.com/elonmusk/status/1400620080090730501, a broken-heart emoji and a picture of a couple discussing a breakup.

Musk followed up by posting a breakup comic strip and replying “nice” to an illustration of rival crypto dogecoin posted by crypto exchange Coinbase. It was unclear what, if anything, any of the tweets meant.

Musk has previously said Tesla would not sell its bitcoin, but his tweets were enough to unsettle markets still fragile following May`s crash.

“When Elon Musk tweets any crypto-related content, the market … expects a reaction,” said Nick Spanos, co-founder of ZAP Protocol, a crypto project in Switzerland.

Bitcoin`s fall pushed it below its 20-day moving average to as low as $36,263 and took some of the edges off its week-to-date gains. It is up 2% so far this week.

`TROLLING THE COMMUNITY`?

Musk has been a major promoter of cryptocurrencies but has turned critical of bitcoin since suspending Tesla plans to take it in payment for cars, owing to concerns about its energy use. Many crypto specialists have struggled to understand the motives behind his tweets.

“He`s trolling the community,” said Bobby Ong, co-founder of crypto data aggregator and analytics website CoinGecko.

Bitcoin and several other cryptocurrencies are still recovering from a crash last month in the wake of that decision and on news of renewed regulatory scrutiny in China.

Telsa stock has now fallen by a third since it announced a $1.5 billion bitcoin purchase in February, and bitcoin is more than 40% below April`s record peak of $64,895.22.

The second-biggest cryptocurrency, ether, which tends to move in tandem with bitcoin, also extended losses through the day. It was last down 8% at $2,626 though on course for a second consecutive weekly gain.

Dogecoin, the cryptocurrency perhaps most sensitive to Musk`s opinions as he helped to turn the coin started as a joke into a multi-billion dollar market valuation, also fell by more than 10% to around $0.36 on Friday.

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New Delhi: The IAMAI-Blockchain and Crypto Assets Council on Tuesday said it has set up a self-regulatory code of conduct that will see all crypto exchange members voluntarily complying with KYC, tax and other norms.

A formal board comprising eminent jurists, technical specialists and fintech compliance specialists is also being set up to oversee the implementation of this self-regulatory code, a statement said.

Blockchain and Crypto Assets Council (BACC), which has been set up under the aegis of the Internet and Mobile Association of India (IAMAI), welcomed the RBI’s advice to banks against using its 2018 circular that called for non-acceptance of crypto-related transactions of customers.

“The association hopes that with this clarifications given by circular RBI/2021-22/45, all speculations that banks are stopping transactions from June 6, 2021 will be put to rest,” IAMAI-BACC said.

The RBI circular also suggests that certain mandatory checks such as KYC (Know Your Customer), AML (Anti-Money Laundering), CFT (Combating the Financing of Terrorism), PMLA (Prevention of Money Laundering Act) and FEMA (Foreign Exchange Management Act) should be carried out on the accounts.

“The IAMAI-BACC believes that such checks are necessary and must be carried out. On its part, the crypto exchange members of the association have set up a self-regulatory code of conduct for its member…”

“In parallel, IAMAI has also suggested that the government should regulate crypto assets through an act of parliament,” it said.

IAMAI-BACC noted that with 15 million users and upwards of Rs 10,000 crore held by small investors, India is among the top players globally in the crypto market.

“…For the welfare of the users, it is very important that crypto assets are regulated. This is a good move by RBI and a positive news for the crypto industry.

“It is a good sign that India is moving towards more acceptance and awareness amongst the mainstream markets and regulators and would help in shaping the crypto-assets market,” it added.

Members of IAMAI-BACC will work together with customers, markets and regulators for the establishment of ethical and professional standards for crypto industry, it said.
Nischal Shetty, founder of WazirX and IAMAI-BACC member, said RBI’s move brings in a lot of clarity for the banks.

“They’ve been on the fence whether they should service the crypto industry or not. Now there’s clarity that will help banks provide services to crypto industry,” he added.

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In a big relief for the cryptocurrency community, the Reserve Bank of India (RBI) has issued a clarification stating that banks and other regulated entities are not in a position to mention its 2018 circular on cryptocurrencies as it has been put away by the Supreme Court (SC) in March 2020 and it remains invalid now.

In a notification, RBI said, “It has come to our attention through media reports that certain banks/ regulated entities have cautioned their customers against dealing in virtual currencies by making a reference to the RBI circular DBR.No.BP.BC.104/08.13.102/2017-18 dated April 06, 2018. Such references to the above circular by banks/ regulated entities are not in order as this circular was set aside by the Hon’ble Supreme Court on March 04, 2020, in the matter of Writ Petition (Civil) No.528 of 2018 (Internet and Mobile Association of India v. Reserve Bank of India).”

The apex bank of the country further added, “Banks, as well as other entities addressed above, may, however, continue to carry out customer due to diligence processes in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT) and obligations of regulated entities under Prevention of Money Laundering Act, (PMLA), 2002 in addition to ensuring compliance with relevant provisions under Foreign Exchange Management Act (FEMA) for overseas remittances.”

Previously, through an email, HDFC Bank and State Bank of India had said that those who are dealing with virtual currencies will face account suspension citing a 2018 circular from the Reserve Bank of India. Notably, the circular was struck down by the Supreme Court in March 2020.

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Bitcoin

Ether, the coin linked to the ethereum blockchain network, dropped 6.26% to $2,262.06 on Saturday, losing $151.11 from its previous close.  Bitcoin, the world`s biggest and best-known cryptocurrency, is down 47.8% from the year`s high of $64,895.22 on April 14.

London: Bitcoin slumped on Friday to its lowest this week, taking losses sparked by a growing crackdown in China and environmental concerns to almost 40% so far this month.

The biggest cryptocurrency extended earlier losses, falling as much as 8.2% to $35,339 as it stayed pinned in this week`s relatively tight trading range. It was last down 6.2%.

“Bitcoin is currently in a bit of `slumber mode` trading in the range of $34,000 and $40,000,” said Ulrik Lykke, executive director at crypto hedge fund ARK36.

“Many traders are acknowledging that price seems to be range-bound for the moment, why they may be hesitant to take a position with high conviction.”

The cryptocurrency has lost 37% in May, which if sustained would be its worst monthly performance since September 2011.

Its drop was triggered by China`s efforts to crack down on mining and trading of cryptocurrencies, and Tesla`s move to halt payments over worries about energy use.
Energy regulators in China`s Sichuan will soon meet local power companies to gather information on cryptocurrency mining, an official said on Thursday, potentially leading to a clampdown in the country`s second-biggest bitcoin production hub.

Still, bitcoin has eked out a gain of around 3% so this week. Crypto markets trade 24/7, with volatility common at weekends.

Smaller coins, which typically rise and fall in tandem with bitcoin, also slumped. Second largest digital token ether fell as much as 11% to a four-day low.

After giving a massive jolt to the cryptocurrency fans, Tesla CEO Elon Musk has now come forward to help form a Bitcoin Mining Council that will promote energy usage transparency” and “accelerate sustainability initiatives worldwide.”

Musk earlier announced not to use the popular cryptocurrency Bitcoin as a payment mode to buy its electric vehicles, citing environmental harm.

He said last week that the electric car maker will not sell any bitcoin and intends to use bitcoin for transactions as soon as mining moves to more sustainable energy.

Now, Musk has met leading Bitcoin miners in North America to form a Bitcoin Mining Council.

“I was pleased to host a meeting between @elonmusk & the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide,” MicroStrategy (a business intelligence company) CEO Michael Saylor said in a tweet late on Monday.

Musk replied early on Tuesday: “Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising”.

Argo Blockchain CEO Peter Wall tweeted that “as a founding member of the Bitcoin Mining Council, Argo will push hard for sustainable mining and more transparency”.

After applying brakes on Bitcoin as a payment mode to buy Tesla vehicles, Musk has also revealed that he might create his own cryptocurrency in the near future.

Tesla had only just started accepting Bitcoin in late March.

Musk has said that Tesla will no longer sell any more of the $1.5 billion Bitcoins it purchased earlier this year.
 

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Cryptocurrencies fought back on Monday, clawing background after a bout of weekend selling fuelled by further signs of a gathering Chinese crackdown on the emerging sector.
Bitcoin climbed as high as $37,391 after falling some 7.5% a day earlier and was last up 5%.

The second-largest cryptocurrency ether jumped more than 10% to as high as $2,321, erasing losses of 8.6% on Sunday that pushed it to near a two-month low around $1,730.

The catalyst for the slump was cryptocurrency “miners”, who mint cryptocurrencies by using powerful computers to solve complex maths puzzles, halting Chinese operations in the face of increasing scrutiny from authorities.

The attention on Chinese miners – who account for some 70% of supply – is the latest front in a wider push by Beijing against the cryptocurrency sector.

Major cryptocurrency exchange Huobi on Monday suspended both crypto-mining and some trading services to new clients from mainland China, adding it would instead focus on overseas businesses. Others also suspended business in China.

In the short-term, market players said, that is likely to lead to pressure on prices as miners sell bitcoin held on their balance sheets.

“If they are pulling up stakes or shutting down, they may need to reduce their balance sheets in the short term,” said James Quinn, managing partner at Q9 Capital, a Hong Kong-based cryptocurrency private wealth manager.

`TOUGH SPOT`

Crypto market players said fears over the China crackdown would likely linger.

“We tend to expect some stabilisation over the next week, which should translate into a bounce, but nobody`s really sure about what happens next,” said Joseph Edwards, head of research at crypto brokerage Enigma Securities.

“Crypto clearly finds itself in a tough spot in terms of the narrative right now, and it`s taken a lot of oxygen out of the room.”

Bitcoin had stabilized from a bruising week on Saturday after Tesla boss Elon Musk – whose comments on cryptocurrencies have been a key price driver in recent months – tweeted support for crypto in “the true battle” with fiat currencies.

Yet after last week`s 25% drop, triggered in part by toughening language from Chinese regulators, bitcoin remains almost 45% below last month`s record high of $64,895.

Its slump has pulled bitcoin roughly back to its level before Tesla unveiled in February a $1.5 billion bitcoin purchase and made a since-reversed decision to accept it as payment.

Ether has fallen by half in just 12 days since its peak of $4,380, with other smaller cryptocurrencies such as dogecoin also suffering heavy declines.

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Bitcoin

Bitcoin, the world`s biggest and best-known cryptocurrency, is down 47.4% from this year`s peak of $64,895.22 on April 14. Ether, the coin linked to the ethereum blockchain network, dropped 11.5% to $2,031.96 on Sunday, down $264.35 from its previous close.

Tesla Inc Chief Executive Officer Elon Musk tweeted on Saturday that in a battle between fiat and cryptocurrencies, his support is with crypto.

“The true battle is between fiat & crypto. On balance, I support the latter,” he said on Twitter in reply to a user who asked him what his thoughts were about people who were angry at him because of crypto.

Musk has previously compared bitcoin to fiat money and often tweets about cryptocurrencies that have sent values for bitcoin and the meme digital currency dogecoin up and down.

In February, bitcoin shot higher after Tesla revealed it had bought $1.5 billion of the cryptocurrency and would soon accept it as a form of payment for cars.

However, bitcoin slumped after the billionaire announced in May that Tesla would no longer accept bitcoin for car purchases, citing long-brewing environmental concerns for a swift reversal in the company’s position on the cryptocurrency.

Earlier this month, he also called the cryptocurrency a “hustle” during his guest-host spot on the “Saturday Night Live” comedy sketch TV show, leading prices to tumble.

Two days ago, Musk assured that he has not sold any of his dogecoin holdings and will not sell any.

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Fake promised giveaways by celebrities such as Tesla CEO Elon Musk are being used by scammers to cash in on interest in cryptocurrencies, the US Federal Trade Commission said on Monday in noting a jump in complaints about cryptocurrency fraud since October.

In one type of scam, people are told that if they give a certain amount of cryptocurrency to a “celebrity” they will get more back.

“People have reported sending more than $2 million in cryptocurrency to Elon Musk impersonators over just the past six months,” the FTC said.

Musk had been a supporter of cryptocurrencies but recently knocked dogecoin by calling it “a hustle” on national television. He has also recently said that bitcoin would not be accepted to buy a Tesla because of the environmental costs associated with mining it.

Scammers also impersonate government authorities or a potential romantic partner, the FTC said.

Overall, nearly 7,000 people reported losses of more than $80 million since October, with a median loss of $1,900, the agency said. That`s twelve times more reports of scams than the same period a year earlier, the agency said.

People in their 20s and 30s were the biggest victims, reporting losing much more money on investment and cryptocurrency fraud than any other type of scam. Older people, over 50, were less likely to report falling for the scams but when they did the losses were bigger, with a median loss of $3,250.

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Bitcoin rallied from a three-month low on Monday in a volatile session that saw investors initially selling and then buying cryptocurrencies in the wake of Tesla boss Elon Musk`s tweets about the carmaker`s bitcoin holdings.

In his latest tweet, Musk said “Tesla has not sold any bitcoin”. That seeming clarification came after weekend tweets hinted that Tesla was considering or may have already sold some of its massive holdings.

Musk has boosted crypto markets with his enthusiasm for the asset class but has lately roiled trade by appearing to cool on bitcoin in favour of its one-time parody, dogecoin. The gyrations are beginning to spook even steeled traders.

Bitcoin fell more than 9% on Monday to as low as $42,185, its lowest since Feb. 8, but rallied back to around $45,190 as of 0911 GMT.

Ether, linked to the ethereum blockchain, fell to as low as $3,123.94, and then bounced back to $3,540. Dogecoin fell nearly 7%, and all three are well under recent records.

“A nice pop, but this is small versus the Musk-induced selling that has been taking place lately,” said Neil Wilson, chief market analyst at Markets.com. “There is nothing new I can say about bitcoin – volatile, highly speculative, easy to manipulate; a bubble.”

Tesla disclosed in February that it had bought $1.5 billion worth of bitcoin in the first quarter. At the end of April, Musk said the company sold 10% of its holdings “to prove liquidity”.

Bitcoin, designed as a payment tool, is little used for commerce in major economies, hampered by high volatility and relatively costly transactions.

The most popular digital currency is now down a third from its record high in mid-April and JPMorgan`s crunching of fund flow data shows investors exiting positions in recent weeks.

On Wednesday, Musk said Tesla would stop taking bitcoin as payment, owing to environmental concerns about energy use to process transactions. Defending that decision on Sunday, he suggested Tesla may have sold its own holdings.

An unverified Twitter account called @CryptoWhale, said https://bit.ly/2QsUQkw: “Bitcoiners are going to slap themselves next quarter when they find out Tesla dumped the rest of their #Bitcoin holdings. With the amount of hate @elonmusk is getting, I wouldn`t blame him…”

In response, Musk wrote: “Indeed.”

It was not clear whether he was confirming sales or whether he referred only to the fact that he had faced criticism, until his clarification in Monday`s tweet.

Musk said Tesla would not sell its bitcoin, but the cryptocurrency has dropped by almost a quarter since Musk`s reversal on Tesla taking it as payment.

Dogecoin has also yet to fully recover from Musk describing it as a “hustle”, although he did boost the price last week by saying he was working to improve its efficiency.

For an asset class that has surged this year, with dogecoin up about a hundredfold, ether up more than fourfold and bitcoin gaining 45%, some are beginning to call time on the wild ride.

“Why would I want to buy bitcoin right now – even if I’m bullish – until the liquidation is over and you see some consolidation in price?” said Chris Weston of brokerage Pepperstone in Melbourne. (Graphic: Bitcoin`s 2021 journey,

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After applying brakes on Bitcoin as a payment mode to buy Tesla vehicles, Elon Musk has now revealed that he might create his own cryptocurrency in the near future.

A Twitter user asked the Tesla head why he is not creating his own cryptocurrency.

“Why not just make a crypto from scratch that does everything you want technically and has a lot of dev support and doesn`t have a high concentration of ownership at least initially?” a user asked Musk on Saturday.

“Only if Doge can’t do it. Big pain in the neck to create another one,” Musk replied.

Musk has announced not to use the popular cryptocurrency Bitcoin as a payment mode to buy its electric vehicles, citing environmental harm.

Musk said that the electric car maker will not sell any bitcoin and intends to use bitcoin for transactions as soon as mining moves to more sustainable energy.

“We are also looking at other cryptocurrencies that use <1 percent of bitcoin`s energy/transaction,” Musk said in a tweet.

Bitcoin nosedived more than 11 percent after the tweet and was trading at nearly $50,000.

The company had only just started accepting Bitcoin in late March. Musk also said that Tesla will no longer sell any more of the $1.5 billion Bitcoins it purchased earlier this year.

Musk who also hosted the Saturday Night Live show on TV last weekend promoted Dogecoin which is the fourth-largest cryptocurrency by market value.

Amid the surge in Bitcoin and Ether cryptocurrencies, Dogecoin has surged more than 659 percent this year. However, it has a long way to go.

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With his cult following, Tesla boss Elon Musk has amassed considerable power to move markets with his musings, but murky rules make it difficult for regulators to rein him in.

The celebrity CEO, who boasts more than 54 million Twitter followers and has a devoted constituency on Reddit, has whipsawed the cryptocurrency market and sent some stocks soaring this year with a series of tweets and business announcements.

That power was in evidence this week. A Musk tweet on Wednesday that Tesla would no longer accept payments in bitcoin sent the cryptocurrency tumbling 17%, roiling bitcoin futures and dragging down the broader cryptocurrency market.

Dogecoin had an even wilder ride this week, first spiralling downward after Musk called it “a hustle” during the US “Saturday Night Live” TV show. Hours later, it jumped when Musk announced his commercial rocket company SpaceX would accept it for payment.

The upstart cryptocurrency received a further bump on Thursday when Musk said he was involved in work to improve its transaction efficiency.

While consumer advocates said Musk was hurting investors and making a mockery of the public markets, it was unclear that he was breaking any rules simply by wielding his influence.

“The problem here is that a loose cannon CEO continues to shoot his mouth off about any number of potential market-moving events,” said Dennis Kelleher, CEO of think tank Better Markets. “It`s clearly grossly irresponsible but it may not be illegal.”

A spokesman for Tesla did not respond to a request for comment.

Musk`s tweets about dogecoin in recent months triggered a rally in the digital currency, which started as a social media parody. Near worthless in late 2020, dogecoin has surged to become the fourth-largest cryptocurrency by market cap, according to CoinMarketCap.com.

Other tweets this year about retailer GameStop and online marketplace Etsy also appeared to boost their shares, while investors mistakenly snapped up shares in device maker Signal Advance believing it was the trading ticker for chat app Signal, which Musk had endorsed.

However, lawyers said Musk would need to move an asset price with the aim of enriching himself or people close to him, or operate with inside information, to fall foul of the law. Reuters could not ascertain Musk`s asset holdings.

For some, the multi-billionaire is no different from top investors like Warren Buffett or Ray Dalio, who were influencing markets long before Musk. And Musk`s use of social media to reach people directly may have muddied the legal waters in his favor.

“In the past, access to these leaders were filtered through staff and press releases. Now, the general public must evaluate this information directly,” said Timothy Shields, a partner at law firm Kelley Kronenberg who focuses on technology.

“Where Musk`s speech reflects himself personally versus Telsa is very difficult for regulators to separate and therefore regulate.”

The Commodity Futures Trading Commission, which regulates bitcoin derivatives, did not respond to requests for comment. A spokesperson for the Securities and Exchange Commission (SEC) said that as a matter of course, the SEC and US exchanges “monitor for suspicious activities across regulated markets.”

SEC SETTLEMENT

Musk has crossed the line before. In August 2018, he sent Tesla`s shares soaring with a tweet that he had “funding secured” to take Tesla private, when he was not even close.

The SEC subsequently fined Musk $20 million for securities fraud and Tesla $20 million for inadequate disclosures and controls over Musk`s Twitter account. The SEC also ordered Tesla to vet any material public communications Musk made regarding Tesla.

But just months later, the SEC said that Musk violated that settlement with a tweet about Tesla`s production outlook that had not been vetted. Musk`s attorneys contested the allegation, saying the Tweet was old news and not material.

The SEC subsequently tightened Tesla`s settlement by detailing a raft of issues Musk was barred from riffing about without approval.

Lawyers said Musk`s Wednesday tweet on Tesla`s bitcoin about-face was carefully crafted and, as such, did not appear to breach that settlement.

Philip Moustakis of law firm Seward & Kissel said Musk and Tesla could in theory get into hot water if the statement was false or misleading, for example, if Tesla had sold bitcoin before the announcement. But, he added, “I would be surprised.”

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