Bitcoin holds steady but BTC El Salvadoran worry climbs
06:43, 16 June 2021
Bitcoin held its own in the last 24 hours, down -0.02% at $40,312 (shortly before 7am) while every other crypto asset in the top 10 (by market cap) slipped considerably more with dogecoin, binance coin and bitcoin cash talking far harder falls.
Dogecoin is down 3% at $0.3178 while binance coin has seen a 3% fall to $364.32. Bitcoin cash was 2.76% lower at $625.47. However bitcoin lifted to $41,261 early evening yesterday before dropping back well below $40,000 by 9.15pm.
El Salvador dollar drain concern
There are further warnings about bitcoin from economist Steve Hanke, professor of Applied Economics at Johns Hopkins University. Hanke warns bitcoin has the potential to undermine El Salvador’s economy – El Salvador recently accepted bitcoin as legal tender.
In an interview with Kitco News, Hanke worries bitcoin transactions could, over time, drain US dollars out of the economy.
However, it has also emerged that almost 1% of bitcoin’s entire capitalisation is now controlled by 19 publicly-listed companies – 13 based in the US – according to new figures from Nickel Digital Asset Management.
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Higher ETP acceptance claimed
Going beyond listed companies, Nickel Digital Asset Management estimates that close to 6% of bitcoin’s market cap is now held by trusts and exchanged traded products. And new research from stockbroker AJ Bell has also emerged, claiming more Britons bought into crypto than stockmarket ISAs in the last 12 months.
“It’s possible that cryptocurrencies will ultimately prove to be profitable in the long run,” said AJ Bell analyst Laith Khalaf, “though that’s still highly debatable.”
“Meanwhile,” he added, “it’s hard to argue with historical performance data which shows an investment in the stockmarket has almost always paid off in the long term.”
Read more: Crypto fund manager Bitwise raise m
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