Bitcoin has not measured up to traders’ expectations in January, but could there be a light at the end of the tunnel for the flagship cryptocurrency?
Bitcoin Reached a New Low Since July, Will There Be a Rebound?
There has certainly been a debate whether Bitcoin would continue its negative slide or bounce back into positive territory after falling below $33,000 on Monday for the first time since July. Luckily, the crypto managed to reverse its course, ending the day above the $37,000 mark. Bitcoin is finally beginning to recover, after $14 million was invested into the popular crypto. The cryptocurrency is now up more than 15 percent since the lows it experienced at the start of the week and so far, it is not showing any signs of slowing down.
Traders might want to consider holding on to those Bitcoins a little while longer.
Will Bitcoin Miners Become More Sustainable?
On Jan 18th, 2022, the Bitcoin Mining Council (BMC) announced the results of its fourth quarter survey. Sustainable power mix, technological efficiency and electricity consumption were the focus points of the survey. According to the survey, the Bitcoin mining industry’s sustainable energy mix was approximately 58.5% during Q4 which showed an increase of one percent from Q3. The estimated technological efficiency grew by 9% as well.
With pressure from the public, governments and shareholders, Bitcoin miners are increasingly looking for sustainable energy sources.
Will El Salvador Remove Bitcoin as Legal Tender as Requested by IMF?
The International Monetary Fund (IMF) is putting pressure on El Salvador to eliminate Bitcoin as a legal tender after becoming the first country to adopt the cryptocurrency as a payment method.
With the large risks associated to Bitcoin on financial stability, integrity and consumer protection being some of the IMF’s main concerns, they are urging the country to reverse their decision.
As a measure to boost economic developments and jobs, El Salvador introduced the virtual currency as a legal tender and released a new digital wallet app, giving citizens $30 in Bitcoin and over 200 cash machines were installed. However, the decision to accept Bitcoin led to protests over the instability and volatility of the crypto.
Bitcoin became a legal tender in October last year and the cryptocurrency has lost about half of its value since November.
Will the IMF and citizens of El Salvador persuade them to remove Bitcoin from the legal tender list? It remains to be seen.