Wednesday, January 19

News of the week: bitcoin falls 20% in a few hours and Jack Dorsey quits Twitter

Key facts:
  • The inflation suffered by the US is no longer transitory according to the Fed chairman.

  • Ethereum 2.0 would be delayed for another year, as shown by Vitalik Buterin’s roadmap.

Among the outstanding news of the week is, again, the resounding fall in the price of bitcoin (BTC), which this time reached below USD 45,000 as a result of market manipulation, according to the explanations of analysts such as Willy Woo.

After the decline experienced in the early morning of December 4, the pioneering cryptocurrency reached ranges close to USD $ 47,000. Bitcoin’s average weekly decline is estimated at 15%. At the time of this writing, the cryptocurrency is trading at USD 48,085, as reflected in the market price of Latin America and Spain, according to the CriptoNoticias price calculator.

With CriptoNoticias, those interested can keep up to date on price changes in the bitcoin and ether market in relation to their local currency. To do this, they can visit the BTC and ETH Prices section, which has a calculator to make conversions quickly and easily to their national currency.

These are the most outstanding news:

  • The price of bitcoin fell about 20% in the first hours of last Saturday, reaching values ​​of the beginning of October, after a manipulation of purchase orders, as observed by analysts. In this regard, Willy Woo explains that before the downturn, important buy orders had been entered in large exchanges that encouraged bullish sentiment and made believe that there was price support, but they were withdrawn before their execution, also removing the false floor. With this descent the predictions of various experts seem to fail which indicated that the bullish cycle of the cryptocurrency had not reached the top.
  • Last Monday, bitcoiner Jack Dorsey resigned as CEO of Twitter. He was replaced by the former CTO of the company, Parag Agrawal, In a move that has raised questions about the future of some advances that the social network had made, such as the recent function of tips with bitcoin on Twitter. Meanwhile, Square, a company also co-founded by Dorsey, announced that it will change its name to Block, with the intention of maintaining its link with the world of cryptocurrencies and blockchain. Facebook (now Meta), for its part, reported its decision to reverse the measure that banned cryptocurrency ads on its platform.
  • During their participation in the Digital Asset Compliance and Market Integrity Summit, Gary Gensler and Jay Clayton, president and former president of the Securities and Exchange Commission (SEC), agreed to predict a productive future for the cryptocurrency ecosystem in the United States. UU, provided it operates under regulation. This, while Jerome Powell, president of the Federal Reserve, admitted that it is time to withdraw the word “transitory” to refer to the inflation that affects the country. For her part, Democratic Senator Elizabeth Warren criticized a Bitcoin mining company for its alleged environmental impact.
  • As part of the celebration of the first anniversary of the Beacon Chain, the chain on which Ethereum 2.0 will run, Vitalik Buterin published a roadmap showing the progress made by the update. The publication suggests that Ethereum 2.0 is still delayed, postponing its arrival to 2023. Despite this, the network took a new step to transition to its version 2.0. This week began the testing phase identified as The Merge (“the merger”), a stage that works on merging the new network (beacon chain) with the current block chain.
  • The head of the Financial Division of the Bank of Spain, José Manuel Marqués, considers that the digital euro can affect monetary policy, user privacy and even the stability of the financial system, by impacting on the financing of banks. This, while the Central Bank of Europe projects that inflation will fall in the region throughout 2022. In the opinion of Christine Lagarde, president of the entity, Europe “is definitely different from the United States”, where the ´projections indicate that inflation will continue.

If you want to know the meaning of several words in the crypto world terminology, you can consult them in the extensive CryptoNews Glossary.

Rect: term referring to the word “wrecked”, originated from a spelling mistake by a user, which means ‘bankrupt’ and refers to when an investor loses all his money due to the change in the price of a cryptoasset.