McGlone thinks that the growth in the demand against the reduction of the supply will determine whether the price of Bitcoin will reach six digits. He said that past returns do not necessarily indicate future results, as those assets have even surpassed the leaders in the market.

In the proximity of 2022, the crucial question is whether Bitcoin will reach a maximum point or just a consolidating bullish market. Many bitcoiners expect the latter to occur.

Mike McGlone considers that the corrections that Bitcoin and Ether have suffered may provide them with relative advantages over the securities market. In general, the prices of shares have not had an adjustment of 10% since the fading of 2020.

The analyst commented on the economic consequences of the COVID-19 pandemic regarding the printing of money by central banks. He said that it could also increase the price of cryptocurrencies, considering that BTC and ETH have a limited supply.

Jerome Powell, the president of the US Federal Reserve, said that the central bank might end the stimulus measures in the short term.

McGlone Considers that 2022 Will Be Optimistic for BTC and ETH

Following the last repression against the mining activity in China, Mike McGlone predicted that the United States will entirely adopt cryptocurrencies in 2022. At the moment, many Chinese miners looking to expand their business are operating their farms in several Bitcoin-friendly states.

The expert explained that an adequate regulation could also be positive, as it would provide the companies from the sector with higher levels of certainty. He said that broader adoption would exceed most fluctuations, like the correction near 50% this year.

The analyst agrees with other experts regarding the great possibilities of Bitcoin to expand and increase its price significantly. Throughout its history, the pioneering cryptocurrency has recovered from its worst drops.

He said a tighter monetary policy could cause a significant setback on Wallstreet, but that would create a favorable situation for Bitcoin.

In general, McGlone believes that it is only a matter of time before the price of Bitcoin reaches six digits. He thinks that the growth in the demand against the reduction of the supply will be the determining factor.

Regarding Ether, McGlone stated that it had gained depth and dominance. Even though the second cryptocurrency in the market has many competitors, it has defended the challenges to its leadership.

There Are Fewer Detractors of Bitcoin and other Cryptocurrencies

McGlone recently noted that the number of detractors of cryptocurrencies is rapidly decreasing. For example, they have often seen the market capitalization of Bitcoin exceed that of leading companies.

He considers that past returns are not necessarily an indicator of future results. However, he said this new type of asset had even surpassed the leaders in the market, causing detractors to join them. He predicted that this process would play a crucial role in 2022.

According to Bloomberg, Bitcoin and Ether are ready to stay on top of the ecosystem. They say that 2022 could be an even better year than 2021 when many good things happened in the cryptocurrency market.

Analysts are aware that the relevance of cryptocurrencies like Bitcoin and Ether has become increasingly evident. Despite the current drop in prices in the crypto market, investors are still interested in buying them as a hedge against inflation.

By Alexander Salazar

This month, BTC has fallen from USD 57,000 to USD 48,000, and ETH has dropped from USD 4,700 to USD 4,200. The fall in the value of shares and changes in the FED policy affected Bitcoin.

The value of BTC and ETH fell by more than 5% in 24 hours. In addition, the entire capitalization of the cryptocurrency market had a loss of almost 6%, according to CoinGecko. Stock prices also trended lower after Chinese real estate developers Evergrande and Kaisa could not make scheduled payments on US dollar bonds.

Bitcoin, the first cryptocurrency by market capitalization, started December with a price above USD 57,000 but is currently below USD 48,000. The same is happening to many altcoins like Ether, which went from above USD 4,700 on December 1^st to below USD 4,200.

Since the beginning of the month, the total market capitalization of cryptocurrencies has dropped by USD 250 billion. Most losses occurred on December 3^rd, when the price of Bitcoin dropped by 17% in just a few hours. Since then, it has recovered some gains before falling again.

Different Factors Cause the Drop in the Price of Bitcoin

Many reasons led to that sale, in which investors in the derivatives markets liquidated their positions, creating a cascade effect of further liquidations. However, the increasing movements of the cryptocurrency in parallel with equity markets were the main factor leading to those settlements. The value of shares fell due to concerns about the COVID-19 Omicron variant and changes in the Federal Reserve policy, which also happened to Bitcoin.

The Dow Jones Industrial Average, an index of stocks of 30 US companies, was flat. However, the Nasdaq fell by more than 1%, and the S&P 500 began to reverse gains from earlier in the week.

Two Chinese real estate developers could not cope with declining home sales and government loan restrictions, probably affecting the United States. Kaisa defaulted on a USD 400-million bond, while China Evergrande Group missed its latest interest payment deadline earlier this week. Due to the overlap between the leading world economies, this seems to be the beginning of another financial crisis.

Bitcoin has positioned itself as a hedge against inflation and a safe asset. However, the injection of money by institutional investors into the cryptocurrency has made its market less immune to movements from other sectors.

Despite the Fall in Prices, Investors Still Trust Cryptocurrencies

Several times, the cryptocurrency market has experienced crashes due to influential events. For example, when Tesla announced that it would not accept payments with Bitcoin, the price of all cryptocurrencies plummeted.

Comments from well-known figures have also affected the price of crypto assets negatively. Some politicians and regulators have said they favor illicit activities like money laundering and terrorism financing.

However, several studies have indicated that other business activities cause more harm to the environment than cryptocurrency mining. Besides, some others have revealed that cryptocurrencies represent a small percentage of crime-related activities.

Investors are increasingly aware that the cryptocurrency market has its ups and downs and will eventually recover. Since its beginning, Bitcoin has proved that it can resume and even exceed its previous all-time highs, even after its worst lows.

By Alexander Salazar

Visa considers that institutions in Argentina will have to adopt cryptocurrencies due to their growing use. They warn that crypto assets represent a technological change for money movement worldwide.

Visa recently released a study on cryptocurrency and consumer attitudes in eight countries. They selected the markets of Argentina, Brazil, the United States, the United Kingdom, Germany, Australia, South Africa, and Hong Kong.

A total of 6,000 residents of the abovementioned countries participated in an online survey. The firm stated there is a significant awareness and adoption of cryptocurrencies.

Consumers are changing their approach to investing, conducting their banking transactions, and viewing the future of money. For that reason, Terry Angelos, Senior Vice President of Visa, said that all financial institutions would need a cryptocurrency strategy.

The payment network considers that cryptocurrencies represent a technological change for money movement. Institutions in countries like Argentina will have to adopt them due to the growth in their use.

Ninety-Four Percent of People Say They Know about Cryptocurrencies

The study by Visa indicated that 94% of those surveyed know what cryptocurrencies are. It also revealed that one-third of them already have crypto assets like Bitcoin. The firm noted that 21% of the respondents are active owners, while 11% are passive. At the same time, they highlight that 21% of them do not own them but are interested in acquiring them.

Visa noted that the purchase of cryptocurrencies is 21% higher in places with an unstable and weak economy than in developed countries. They explained that inflation and devaluation drove people to invest in them to preserve the value of money. This is happening in Argentina and the United States, where concern about the price is growing.

Sixty Percent of People Increased the Use of Cryptocurrencies in 2021

More than 62% of the participants in the survey owning cryptocurrencies stated they increased their use in the last year. The company noted that curious consumers are ready for adoption and could increase their engagement further.

Cryptocurrencies are a way to acquire wealth and a financial asset, said more than 40% of the respondents. They think people will buy goods, pay for services, and make national and international money transfers with them within five years. They also predicted that most consumers would use them in less than ten years.

Eighty-One Percent of People Want Cards to Operate with Cryptocurrencies

According to the study, 81% of respondents expressed that they were interested in using credit and debit cards to operate with them. That answer explains why MasterCard, the second-largest payment network, will allow payments with crypto assets.

Almost 40% of the people surveyed already owning cryptocurrencies said they would leave their banks if they did not adopt them. They know that they can use other financial platforms that integrate those assets and fiat money.

The study that Visa conducted proved that the interest in crypto assets is increasingly growing worldwide. Many people know that investing in Bitcoin will allow them to preserve the value of their money. Despite the current fall in prices in the market, the pioneering cryptocurrency has always recovered from its worst lows.

By Alexander Salazar

The computing power could soon equal and exceed the numbers before the ban on cryptocurrency mining in China. Even though the price of Bitcoin is facing a dip, the hash rate continues an upward trend.

The hash rate of Bitcoin is about to return to its levels before the Chinese repression against cryptocurrency mining, according to Glassnode.

The graphs of the blockchain analysis company indicate that the hash rate is only 4 percent away from reaching the levels of early May. At that time, it reached an all-time high (ATH) of 197.8 exahashes per second (EH/s).

The hash rate of the pioneering cryptocurrency is recently above 188.3 EH/s, showing a significant recovery of the industry. That points to estimates that match and exceed the previous level. That seems imminent and could indicate a growth in the number of miners connected to the network.

Relationship between the Hash Rate and the Price of BTC

The hash rate usually follows the path of the price of the pioneering cryptocurrency. After the Chinese government banned the industry, miners disconnected their farms and migrated, consuming their computing power and leading the price of BTC to drop.

The hash rate of October returned to the levels of May and pointed to a new all-time high. On the 20^th of that month, the value of Bitcoin reached an ATH of nearly USD 67,000.

The current Glassnode chart shows BTC is facing a dip, but the rebound of the hash rate brought it closer to its May highs. Nobody knows exactly whether the price may rise, but a future upward trend could occur.

Bitcoin mining is quite profitable even with low prices, which also hints at the growth in the hash rate. Miners connect when work makes money, so an increasing computing power suggests more miners operating and monetizing.

The Attack by the Chinese Government against Cryptocurrency Mining

In mid-May, the Chinese government extended its attack against Bitcoin and other cryptocurrencies, leading to a ban on mining.

As a result, the hash rate plummeted to all-time lows, and the capacity to mine cryptocurrencies was 61 EH/s.

The government alleged excessive use of energy to sustain the activity, especially in regions with scarce electricity. They also said that cryptocurrency mining harms the environment worldwide.

Since then, thousands of cryptocurrency mining machines and people have moved to nearby borders like Kazakhstan. Meanwhile, others went to more distant lands like the United States and Canada.

After welcoming miners and giving them spaces and straightforward rules to expand the industry, the United States quickly replaced China regarding hash rate.

While the United States currently has 30% of the global hash rate, Kazakhstan has 8%. Russia and Canada have also opened their doors to cryptocurrency mining.

Bitcoin mining, an activity practically located in one place, has risen by 93% from the lows seen in June. Besides, it has become global by moving to other latitudes, an essential operation for the pioneering cryptocurrency to stay.

The relevance of Bitcoin and other cryptocurrencies is increasingly evident, which the governments of various countries have not overlooked. In that regard, they have accepted the miners who migrated from China, offering them the opportunity to expand their activity.

By Alexander Salazar

Investors do not use only Bitcoin but also altcoins like Ether, Cardano, and Dogecoin. DeFi has contributed to the flood of new tokens into the US cryptocurrency market.

Three-fourths of US investors could have exposure to BTC if there were an available spot exchange-traded fund (ETF), a recent survey by Grayscale reveals.

The study reveals that 77% of the 1,000 investors surveyed would be willing to consider BTC. However, they would only do it if the abovementioned cash instrument were an investment option.

The firm explains that this sentiment gained momentum after the US Securities and Exchange Commission (SEC) approved three Bitcoin futures ETFs.

Grayscale notes that the arrival of a Bitcoin futures ETF in the United States was a positive development psychologically. That helped the price of Bitcoin reach an all-time high of nearly USD 67,000 in October.

Although the Bitcoin community considers the approval of those ETFs positive, they prefer a spot one backed by real Bitcoin rather than futures. The market analysis firm added that a futures-based Bitcoin ETF is an excellent start to a broader possibility of adoption at scale.

They explain that many agree a Bitcoin spot-based ETF would offer more advantages to the average investor. It would allow monitoring the market price of Bitcoin, in contrast to a futures ETF.

US Investors Consider that Not Everything Is Bitcoin

The report from Grayscale highlights that Bitcoin is still the most popular cryptocurrency in the United States. However, they recognize that users also take into account other crypto assets.

They note that the rise of decentralized finance (DeFi) has contributed to driving the flood of the cryptocurrency market.

However, Grayscale insists that BTC remains the leader, with 99% of investors saying they are aware of the relevance of the pioneering cryptocurrency. Besides, sixty-eight percent of them state that they are already familiar with Bitcoin.

US investors are also aware of the other assets with profiles on the rise, including cryptocurrency meme Dogecoin (DOGE). That crypto asset started as a joke but has risen to fame thanks to comments from well-known figures.

Almost three-fourths of the people consulted (74%) said they already knew about DOGE, exceeding the level of awareness around Ether (56%). More than 25% of investors were already familiar with Litecoin (LTC), Tether (USDT), and Cardano (ADA).

In that sense, Grayscale reports that most investors who have Bitcoin also own other cryptocurrencies. They highlight that investing in cryptocurrencies is not a zero-sum game.

According to the firm, most investors who own Bitcoin (87%) also have exposure to one or more alternative currencies. The most popular altcoins include Ether (ETH), the Ethereum cryptocurrency, and DOGE.

Crypto assets have a strong presence in the United States now that it concentrates much of the global cryptocurrency mining. That situation has contributed to the growing interest in Bitcoin from US investors.

US investors know that Bitcoin offers considerable advantages as a store of value. Many agree that futures-based ETFs do not provide them with the opportunity to monitor the price of the cryptocurrency.

By Alexander Salazar

CIA Director William Burns stated that the agency has many different cryptocurrency-focused projects going on.

According to the director in a report by the medium Vice.comThe Central Intelligence Agency of the United States of America, the CIA shows profound interest in cryptocurrencies. There is a long-standing conspiracy theory among a reduced number of crypto enthusiasts claiming that the anonymous inventor of Bitcoin, Satoshi Nakamoto, was the CIA or another agency.

CIA Director William Burns said Monday this week that the intelligence agency has several different cryptocurrency-focused projects on the go. Burns expressed his ideas at the end of a talk at the Wall Street Journal CEO Summit.

CIA and Cryptocurrencies

One attendee asked if the agency is currently into cryptocurrencies. This question arrived because the crypto world is at the core of a ransomware epidemic that American officials try to control and kill.

Burns replied that this awareness of cryptocurrencies is something inherited. His predecessor made the first step but had also started several different projects focused on cryptocurrency to see second and third-order consequences and help colleagues in other parts of the world.

The answer has to do with something that has become a problem: ransomware has attacked various parts of the government and also the private sector in the US. In May of this year, a ransomware attack aimed at a gas pipeline company, Colonial Pipeline, caused a shutdown, panic buying, and gas shortages in several states.

The representative said cryptocurrencies could play a role in all the events that lead to ransomware attacks. This theory arrives because one of the ways to reach ransomware attacks and deter them is to access the financial networks that many of those criminal networks use.

Among the groups with the highest amount of capital raised is REvil, a group of hackers from Russia, which has received a third of the Bitcoin captured under this modality so far this year, since it has received up to USD 11.3 million in digital currency by victims.

Some analysts point out that the group could consolidate its position in the first place if the attack perpetrated against more than 200 American companies finally results in the payment of the requested USD 70 million.

The Mail / Netwalker group also goes in the same vein. This year it capitalized about USD 5.7 million in Bitcoin after the payment of the ransoms in question. On the other hand, this group of cybercriminals has received at least USD 27.9 million throughout their trajectory.

Cyberattacks Have Increased More than 200% Since 2020

Attacks perpetrated by hackers in which payments with Bitcoin have increased more than 200% since 2020, especially in light of the rebound registered by the first cryptocurrencies during the last quarter of the said year.

Among the theses handled in this regard, they highlight that these assets are becoming especially attractive to hackers and criminals precisely because of their rapid revaluation, their properties around the anonymity of operations, and the possibility of making cross-border payments without obstacles.

By: Jenson Nuñez