Coming every Saturday, Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more — a week on Cointelegraph in one link.
Top Stories This Week
After reaching lows of $43,500 last Sunday, Bitcoin staged a comeback, managing to hit $52,000 on Wednesday. There was optimism that the correction was over and that BTC would now have the chance to return to all-time highs.
Alas, the best-laid plans of mice and men often go awry. Fast forward to this weekend, and Bitcoin is once again struggling to break above $50,000 — a psychologically important milestone. Now, the nerves are starting to set in.
A drop below recent lows of $46,000 could open the door to further downward movement, endangering a bull run that’s been in place for almost a year… at least in the short term. Pseudonymous trader Rekt Capital believes BTC could bottom between $38,000 and $45,000 if this level fails to hold.
Traders are now beginning to speculate that Bitcoin may continue to trade sideways for now. A gloomy macroeconomic picture dominated by rising bond yields and a pullback in tech stocks certainly isn’t helping matters.
Then again, there’s always a metric that shrugs off the gloom… suggesting everything is fine. Glassnode’s Reserve Risk indicator suggests that BTC’s rally is still in the early to middle stage — even after this week’s pullback. Great. Nothing to worry about, then.
Tesla is now coming under pressure to sell off the $1.5 billion it holds in Bitcoin. Since the electric vehicle maker announced its crypto buy-in, TSLA shares have fallen by a stomach-churning 30.8%.
Gary Black, the former CEO of Aegon Asset Management, tweeted that Tesla would generate “positive momentum” if it bows out of crypto, adding: “Highly unlikely, but shareholders would be very supportive.”
Bitcoin’s price correction has also been hurting MicroStrategy — the business intelligence firm that owns more than 91,000 BTC. MSTR’s share price has tumbled by 52.8% in less than a month.
The company doesn’t seem too worried, though. MicroStrategy bought another 205 BTC this week in a $10-million spending spree that coincided with the latest dip.
While the software company began putting its existing assets into BTC in 2020, back when Bitcoin traded at about $10,000, its latest purchases have yet to break even.
Buckle yourselves in… we’ve got so much NFT news to get through. One of the more attention-grabbing headlines this week came when Kings of Leon announced it is releasing its eighth album in the form of a nonfungible token.
Three types of NFTs are on offer, with the rarest offering front-row seats to Kings of Leon concerts for life, a personal driver and the chance to hang out with the band before shows.
Frenzied activity in the NFT sector doesn’t end here. The rarest Pepe of them all — “Homer Pepe” — went under the hammer for 205 ETH this week… that’s worth $323,000 at the time of writing. Meanwhile, an NFT made up of 100 individual pieces from 100 different artists sold out within minutes on Rarible.
Aavegotchis — NFTs inspired by the Tamagotchi devices that were oh so trendy in the late 1990s and early 2000s — were snapped up in under a minute. And as sales on NBA Top Shot continue to go through the roof, the executive chairman of the sports merchandise company Fanatics, Michael Rubin, said: “It’s almost a frenzy happening right now.”
If all of this wasn’t crazy enough, an original artwork by Banksy has been burned and turned into an NFT. Ironically, the piece is called “Morons” and depicts buyers at an art auction bidding on a piece emblazoned with the words “I can’t believe you morons…