Bitcoin Gains Ground on Institutional Adoption

Ibeth Rivero

Bitcoin gained 4.62% against the US dollar yesterday, closing the session at the 35,407.0 level and gaining ground for the fifth consecutive session. Since the beginning of the week, Bitcoin has gained 13.66% against the US dollar, gaining ground for the second consecutive week after gaining 7.24% in the previous week.

On Sunday, Bitcoin managed to hit the 39,000 level, which is remarkable considering that it recently fell below the 30,000 level after a sell-off in stocks and an increase in risk aversion.

Other cryptocurrencies also managed to gain ground during the session. Ethereum gained 1.83% against the US dollar and closed the session at the 2,190.59 level, followed by Dogecoin, which gained 1.75% during the session and closed the session at the 0.197533 level. Similarly, XRP gained 0.03% during the session and closed at the 0.60685 level, followed by Litecoin, which gained 1.64% during the session, closing at the 127.590 level.

Elon Musk recently commented in a conference that Tesla is considering receiving Bitcoin again as a medium of payment, arguing that miners are now using more sources of renewable energy.

“Long-term, renewable energy will be the cheapest energy, but it doesn’t just happen overnight,” commented Musk. “But as long as there is a conscious and determined, real effort by the mining community to move toward renewables, then obviously Tesla can support that.”

Previously, Tesla had stopped receiving payments in Bitcoin, claiming that there were concerns regarding the environmental impact of Bitcoin mining. This same argument has been given by the Chinese government when explaining why it is banning mining in its territory, though many believe that the government is trying to hinder any possible competition for the digital yuan.

The global economic outlook remains uncertain despite the economic recovery and the massive vaccination campaign. This is mainly due to the spread of the Delta variant of the COVID-19 virus, which is believed to be more transmissible than other strains and could cause another wave of closures and restrictions.

Inflation pressures are also increasing, which are mainly linked to the Biden administration’s continuous spending, though many argue that inflation is expected to be short-lived.

Since the beginning of the pandemic, 194,846,419 individuals have become infected, leading to 4,175,431 deaths. So far, 3.86 billion vaccine dosages have been distributed among the world's population, while 1.07 billion are now fully vaccinated, accounting for 13.7% of the population.

By 6:42 GMT, Bitcoin gained 15.13% against the US dollar, hitting the 38,979.0 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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