Bitcoin’s Short-Lived Spike; Russia Gets Tougher On Crypto

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CRYPTO MARKETS

Bitcoin surged past $10,000 to a peak of $10,429 Monday evening, its highest point since February, as protests against racial injustice rocked the U.S. But it only stayed there for less than 24 hours before a sudden collapse toward $9,000 on Tuesday. Coinbase, the largest exchange in the U.S., once again crashed amid the volatility

Bitcoin enjoyed modest gains the rest of the week, but a sustained move above $10,000 remains elusive. It has approached that level several times since the beginning of May and surpassed it on two occasions, seemingly uncorrelated with typical market-moving news.

One prominent bitcoin analyst, who goes by the pseudonym PlanB and tweets models to more than 100,000 followers, is still bullish, expecting the price to hit $100,000 by the end of 2021.

BRAVE NEW WORLD

Popular podcaster Joe Rogan rebuked Google
GOOGL
’s targeted advertising on his podcast this week, referencing a $5 billion lawsuit that was just filed against the search engine giant, and offered the cryptocurrency-powered Brave as an alternative. Brave launched in 2017 after a $35 million ICO, and users receive tokens for voluntarily watching ads from partner brands, but it otherwise blocks ads and website trackers. It has 15 million monthly active users and has added 1.5 million in the last two months. 

RUSSIA DROPS THE HAMMER

The Russian government posted an updated version of its proposed law regulating digital assets this week, adding more restrictions to the industry. The law would prohibit the circulation of all cryptocurrencies, as well as their mining and advertising, though simply owning it will not necessarily be a crime. Some Russian crypto enthusiasts are hopeful that there is still room for interpretation in the law to allow for regulated security token offerings in the future.

ENTERPRISE

JPMorgan has come a long way since CEO Jamie Dimon called bitcoin a “fraud” in 2017. A new book set to be released in January 2021, Kings of Crypto, reveals that Dimon has been holding secret meetings with Coinbase CEO Brian Armstrong since 2018. The Wall Street Journal reported in May that JPMorgan is offering its services to Coinbase and rival exchange Gemini, and America’s biggest bank launched its own stablecoin last year.

Plus, startups like BitTorrent, Audius and VideoCoin are already using blockchain to help entertainers distribute content and live-stream events. Here’s how blockchain can supercharge the burgeoning streaming economy on a larger scale. 

THE STATE OF CRYPTO SCAMS

Blockchain forensics firm CipherTrace revealed that there was an uptick in crypto thefts in the first five months of 2020 in its spring anti-money laundering report, though coronavirus-related frauds offering fake PPE products to lure victims were “not the main cause.” Most of the money stolen can be traced to one WoToken Ponzi schemer who defrauded more than 715,000 people of about $1 billion worth of crypto at current prices.

ELSEWHERE

Expecting a spike in bitcoin? Investors say it may take time [Reuters]

Bitcoin Die-Hards Revisit Roots With Virtual Conference Giveaway [Bloomberg]

Meet the U.S. Senate Candidate Who’s Invested in Bitcoin Since 2013 [CoinDesk]