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Is Now a Good Time to Buy Bitcoin? (Updated 2024)
Bitcoin is prone to price volatility, with wide swings to the upside and downside. The most recent downturn comes alongside market turmoil triggered by weak jobs data and fears of a looming recession.
Bitcoin's value has rallied over the last few quarters, increasing from about US$26,000 in mid-September 2023 to an all-time high of around US$73,000 in mid-March of 2024.
There have been several notable events in the Bitcoin space in that time, including the much-anticipated launch of the first US spot Bitcoin exchange-traded funds (ETFs) in January and the fourth Bitcoin halving event that occurred on April 19. Bitcoin's value dropped to US$39,500 in January after the ETF launch but soared through February and early March to its new high.
Since the Bitcoin halving, the price has fluctuated within a wide margin, ranging from US$55,000 to US$71,000. On May 20 and June 5, the price briefly came within range of its previous high, reflective of the cryptocurrency market's volatility.
It has seen intermittent highs and lows since in response to economic cues such as unchanging US interest rates, persisting inflationary pressures and geopolitical events. However, its high and low points since its March peak have both shown a downward trend.
Buying Bitcoin isn't a simple decision. Before you decide if Bitcoin is a good investment for you, you need to understand both Bitcoin and the wider crypto market. Read on to learn the basics.
What gives Bitcoin its value?
Bitcoin was the world's first cryptocurrency, created in January 2009 by the mysterious Satoshi Nakamoto.
Conceived as a virtual alternative to fiat currency, Bitcoin is built atop blockchain technology, which it uses for both validation and security. Blockchain itself is a distributed digital ledger of transactions, operating through a combination of private keys, public keys and network consensus.
The best analogy to explain how this works in practice involves Google Docs. Imagine a document that's shared with a group of collaborators. Everyone has access to the same document, and each collaborator can see the edits other collaborators have made. If anyone makes an edit that the other collaborators don't approve of, they can roll it back.
Going back to Bitcoin, the virtual currency primarily validates transactions through proof of work. Also known as Bitcoin mining, this competitive and incredibly resource-intensive process is the means by which new Bitcoins are generated.
How it works is deceptively simple. Each Bitcoin transaction adds a new "block" to the ledger, identified by a 64-digit encrypted hexadecimal number known as a hash. Each block uses the block immediately preceding it to generate its hash, creating a ledger that theoretically cannot be tampered with. Bitcoin miners collectively attempt to guess the encrypted hex code for each new block — whoever correctly identifies the hash then validates the transaction and receives a small amount of Bitcoins as a reward.
From an investment perspective, Bitcoin toes the line between being a medium of exchange and a speculative digital asset. It also lacks any central governing body to regulate its distribution. As one might expect, these factors together make Bitcoin quite volatile, and therefore somewhat risky as an investment target.
As for the source of this volatility, Bitcoin's value is primarily influenced by five factors.
1. Supply and demand
It's widely known that no more than 21 million Bitcoins can be produced, and that's unlikely to happen before 2140.
Only a certain number of Bitcoins are released each year, and this rate is reduced every four years by halving the reward for Bitcoin mining. The last of these "halvings" occurred in April 2024 and the next one is due sometime in 2028. When it happens, there may be a significant increase in Bitcoin demand, largely driven by media coverage and investor interest.
Bitcoin demand is also strengthening in countries experiencing currency devaluation and high inflation.
It would be remiss not to mention that Bitcoin represents an ideal mechanism for supporting illicit activities — meaning that increasing cybercrime could itself be a demand driver.
2. Production costs
It's said that Bitcoin benefits from minimal production costs. This isn't exactly true, however. Solving even a single hash requires immense processing power, and it's believed that crypto mining collectively uses more electricity than some small countries. It's also believed that miners were largely responsible for the chip shortage experienced throughout the pandemic due to buying and burning out vast quantities of graphics cards.
These costs together have only a minimal influence on Bitcoin's overall value. The complexity of Bitcoin's hashing algorithms and the fact that they can vary wildly in complexity are far more impactful.
3. Competition
Bitcoin's cryptocurrency market share has sharply declined over the years. In 2017, it maintained a market share of over 80 percent. Bitcoin's current market share is just over 56 percent.
Despite that fall, Bitcoin remains the dominant force in the cryptocurrency market and is the marker by which many other cryptocurrencies determine their value. However, there is no guarantee that this will always remain the case. There are now scores of Bitcoin alternatives, known collectively as altcoins.
The most significant of these is Ethereum. Currently accounting for roughly 14 percent of the crypto market, Ethereum has maintained its position as the second largest cryptocurrency. Some experts have suggested that Ethereum may even overtake Bitcoin, but others don't see that as a possibility in the near future.
4. Regulations
Bitcoin may itself be unregulated, but it is not immune to the effects of government legislation. For instance, China's 2021 ban of the cryptocurrency caused a sharp price drop, though it quickly rallied in the following months. The European Union has also attempted to ban Bitcoin in the past, and Nic Carter, a partner at Castle Venture, accused the US of trying to do the same in February 2023. A ban in either region could be devastating for Bitcoin's overall value.
However, the US made progress in establishing crypto legislation in 2024 when the House passed the Financial Innovation and Technology for the 21st Century (FIT21) Act in a bipartisan 279 to 136 vote on May 22.
5. Public interest and media coverage
As with any speculative commodity, Bitcoin is greatly influenced by the court of public opinion.
Perhaps the best example of this occurred in 2021. At that time, a tweet from Tesla's (NASDAQ:TSLA) Elon Musk caused Bitcoin's price to drop by 30 percent in a single day. This also wiped about US$365 billion off the cryptocurrency market.
A more recent example occurred on January 9, leading up to the deadline for eight spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC). In a since-deleted post on X, formerly known as Twitter, a hacker falsely stated that the SEC had approved all eight pending Bitcoin ETFs. This caused the price of Bitcoin to spike to US$48,000, but it quickly dropped back down to around US$46,000 after the SEC confirmed it was a hack, leading some analysts to consider it a "sell-the-news" event.
Is it a good time to buy Bitcoin?
Bitcoin is notoriously volatile, making it difficult to judge where the crypto is going next, but taking a look at recent drivers and past trends can help investors make that decision.
Recent geopolitical and economic events alongside a substantial payout to creditors of the failed Bitcoin exchange Mt. Gox have fueled market uncertainty, with intermittent periods of high and low price volatility serving as a clear signal of shifting investor sentiment. Amidst market turmoil triggered by weak jobs data and a Yen carry trade unwinding at the beginning of August, Bitcoin briefly dropped below US$50,000.
Despite signs of recovery, the impact is still being felt in the crypto market, and Bitcoin has lost 5.6 percent of its value in the last 30 days. In a research note, Ryan Lee, chief analyst at Bitget Research, warned that bullish price action the week ending on August 9 “cannot support a full market reversal or recovery.”
“Crypto prices will likely be rangebound with a bias to the weak side,” Augustine Fan, head of insights at SOFA.org, told CoinDesk on August 11. At the same time, crypto miners have been facing declining hash prices since the halving, while the hash rate reached an all-time high, contributing to the considerable volatility observed in August.
Co-founder of Blockspace Media Charlie Spears told The Defiant on August 12 that Bitcoin’s tumble to US$50,000 following the August 5 rout combined with the added mining difficulty “felt like a bottom.”
Glassnode data explained that sellers have been outperforming buyers since March 14, when Bitcoin reached its highest valuation of US$73,737.94. The cumulative volume delta, a metric that assesses the balance between buying and selling pressure, indicated a negative balance, suggesting more selling than buying activity.
Furthermore, Bitcoin fell below the 50-day simple moving average (SMA) on August 3 after the July employment report sparked fears of an impending recession and triggered a sell-off in riskier assets. On August 11, Bitcoin’s price crossed below the 200-day SMA, forming a “death cross,” an analysis pattern that suggests a decline may be the start of a longer-term downward trend. Similar patterns were observed during the FTX crash and in September 2023, and both were followed by periods of price discovery.
Bitcoin’s price didn’t move above the 50-day SMA until August 23, when it jumped 5 percent to US$64,183 after the Fed gave the green light to begin lowering interest rates in September. Historically, favorable markets have tended to influence crypto prices positively, and investors were hopeful that the news would provide increased buying pressure, but so far that hasn’t been the case.
What could it mean for Bitcoin if prices continue to struggle? Let’s compare Bitcoin’s crash in late 2022, when it fell to US$17,000, to its recent decline. Per NASDAQ, Bitcoin's turbulence can be traced back to a few factors.
First and foremost were the harsh economic conditions of 2022. To combat supply shortages and inflation, the US Federal Reserve hiked interest rates aggressively. The war in Ukraine introduced even further uncertainty. In response, most investors reined in discretionary spending and became less willing to speculate on risky or volatile assets.
The catastrophic failure of crypto exchange FTX also left a sour taste in the mouths of investors to the tune of a nearly US$1 billion loss. Already wary of Bitcoin, many took FTX's failure as a sign that their initial instincts were correct.
That said, Bitcoin didn't actually take that long to recover from its post-FTX crash — by mid-January 2023, it had already returned to its pre-crash price. In the time since, the cryptocurrency experienced one of its most promising periods since its inception — including a new high in March 2024. despite its price becoming stuck in August with little change observed heading into September.
However, it is important to remember that there's no such thing as a guaranteed investment, especially when it comes to cryptocurrencies. On the one hand, there's virtually no chance that Bitcoin will experience a crash to zero like Terra Luna. On the other hand, we also cannot take for granted that its value will continue to climb.
What is Bitcoin's long-term price outlook?
For those considering Bitcoin as a long-term investment, it’s worth considering experts’ thoughts on Bitcoin in the future.
Veteran analyst Peter Brandt said in February that if Bitcoin could break past its previous high, the cryptocurrency could easily reach a new record of US$200,000 by September 2025. Only two weeks after the interview, Bitcoin surpassed the US$72,000 mark in the early hours of March 11.
“I've seen estimates anywhere from US$75,000 to US$150,000, which I think are reasonable in the next 12 to 18 months,” Peter Eberle, President and CEO of Castle Analytics, told the Investing News Network in an interview before the Bitcoin halving in April.
Crypto industry specialists surveyed in early 2024 by UK fintech firm Finder shared somewhat more conservative estimates, although they are still quite promising and point to prices above US$100,000 in the near future. They believe that Bitcoin could rise to a value of roughly US$122,688 by 2025, and US$366,935 by 2030.
In March, ARK Invest CEO Cathie Wood gave an astronomical Bitcoin prediction when she said it could be worth over US$75 trillion by 2030.
Not everyone is so optimistic about Bitcoin's prospects. Pav Hundal, lead market analyst at Swyftx, has expressed concerns about Bitcoin's future in the context of continued geopolitical upheaval and economic uncertainty. Billionaire investor Warren Buffet, meanwhile, has not minced words regarding his opinion on Bitcoin and its future.
According to Buffet, Bitcoin is an unproductive asset with no unique value. He also feels that it doesn't count as a true currency — in fact, he called it “rat poison.” Moreover, he believes that the crypto market as a whole will end badly.
Regardless of whether you believe Bitcoin's proponents or naysayers, it's clear that it has some incredibly prominent backers in both the investment world and the wider business landscape. Business analytics platform MicroStrategy (NASDAQ:MSTR) is by far the largest public company in the Bitcoin space, with 226,500 Bitcoin to its name as of August 8. The next three public companies with the largest Bitcoin holdings are Marathon Digital Holdings (NASDAQ:MARA) with 20,818 Bitcoin, Tesla with 9,720 Bitcoin and Hut 8 (NASDAQ: HUT) with 9,109 Bitcoin.
The US, China and the United Kingdom hold the top three spots for countries with the most Bitcoin with 207,189, 194,000, and 61,000 Bitcoin respectively at that time.
There are also plenty of individuals with large holdings, the most significant of which is believed to be Bitcoin's creator, Satoshi Nakamoto. Other prominent names include Michael Saylor, Cameron and Tyler Winklevoss and Tim Draper.
How to smartly invest in Bitcoin?
Bitcoin seems to be recovering from recent upheaval. After climbing to nearly US$70,000 in late July, the Bitcoin price fell rapidly in early August to below US$50,000 on August 5. By August 8, it had already moved back above the US$59,000 mark, and moved close to US$65,000 in late August before settling just under the US$60,000 mark as of mid-September.
Global markets remain apprehensive ahead of the US Federal Reserve’s September meeting, when the first rate cut is expected to be initiated. Taking current market conditions into account, now could be a good time to invest in Bitcoin, so long as you remain cognizant of the risks.
But if you opt to jump into the market, what comes next?
What is the process for buying Bitcoin?
The good news is that investing in Bitcoin is actually quite simple. If you're purchasing through a stockbroker, it's a similar process to buying shares of a company. Otherwise, you may need to gather your personal information and bank account details. It's recommended to secure your network with a VPN prior to performing any Bitcoin transactions.
The first step in purchasing Bitcoin is to join an exchange. Coinbase Global (NASDAQ:COIN) is one of the most popular, but there's also Kraken and Bybit. If you're an advanced trader outside the US, you might consider Bitfinex.
Once you've chosen an exchange, you'll need a crypto wallet. Many first-time investors choose a software-based or "hot" wallet either maintained by their chosen crypto exchange or operated by a service provider. While simpler to set up and more convenient overall, hot wallets tend to be less secure as they can be compromised by data breaches.
Another option is a "cold" wallet — a specialized piece of hardware specifically designed to store cryptocurrency. It's basically a purpose-built flash drive. If you plan to invest large amounts in crypto, a cold wallet is the better option.
Once you've acquired and configured your wallet, you may choose to connect either the wallet or your crypto exchange account to your bank account. This is not strictly necessary, and some seasoned investors don't bother to do this.
Finally, with your wallet fully configured and your exchange account set up, it's time to place your order.
Best practices for investing in Bitcoin
The most important thing to remember about Bitcoin is that it is a high-risk asset. Never invest money that you aren't willing to lose. Treat Bitcoin as a means of slowly growing your existing wealth rather than an all-or-nothing gamble.
As with other investments, it's important to hedge your portfolio. Alongside Bitcoin, you may want to consider investing in other cryptocurrencies like Ethereum, or perhaps an altcoin. You may also want to explore other blockchain-based investments, given that even the most stable cryptocurrencies tend to be fairly volatile.
It's also key to ignore the hype surrounding cryptocurrencies. Recall how many people whipped themselves into a frenzy over non-fungible tokens in 2022. More than 95 percent of the NFTs created during that time are now worthless.
Make decisions based on your own market research and advice from trusted — and more importantly, certified — professionals. If you're putting up investment capital based on an influencer's tweets, you are playing with fire.
You should also start small. A good rule of thumb is not to dedicate more than 10 percent of your overall capital to cryptocurrency. Even that number could be high — again, it's all about moderation.
Make sure to prioritize cybersecurity as well. Cryptocurrencies are an immensely popular target for cybercriminals. In addition to maintaining a cold wallet, make sure you practice proper security hygiene. That means using a VPN and a password manager while also exercising mindfulness in how you browse the web and what you download.
Finally, make an effort to understand what cryptocurrencies are and how they work. One of the reasons Sam Bankman-Fried was able to run FTX as long as he did was because many of his investors didn't fully understand what they were putting their money into. Don't let yourself be fooled by buzzwords or lofty promises about Web3 and the metaverse.
Do your research into the technology behind it all. That way, you'll be far better equipped to recognize when something is a sound investment versus a bottomless money pit.
When should you buy and sell Bitcoin?
Generally speaking, Bitcoin's price action is sentiment driven. To determine if it is a good time to invest in Bitcoin, you must pay attention to the market and listen to the experts. Given how dramatically Bitcoin's value tends to fluctuate, traditional advice for other assets does not always apply.
What is indirect crypto investing?
Given Bitcoin's volatility, it's understandable that you might be leery of making a direct investment. The good news is that you don't have to. You can indirectly invest into the crypto space through mutual funds, stocks and ETFs.
ETFs are a popular and flexible portfolio choice that allows investors to benefit from a sector’s performance without the need to directly own individual stocks or assets. They are an especially appealing option in the cryptocurrency market as the technical aspects of purchasing and holding these coins can be confusing and intimidating for the less technologically inclined.
Bitcoin futures ETFs provide exposure to the cryptocurrency's price moves using Bitcoin futures contracts, which stipulate that two parties will exchange a specific amount of Bitcoins for a particular price on a predetermined date.
Conversely, spot Bitcoin ETFs aim to track the price of Bitcoin, and they do so by holding the asset. Spot Bitcoin ETFs have been offered to Canadians since 2021; for more details, check out 11 Canadian Cryptocurrency ETFs and 5 Biggest Blockchain ETFs. Spot Bitcoin ETFs began trading in the US on January 11, 2024.
Do a bit of research and touch base with your stockbroker or financial advisor before you go in this direction.
Investor takeaway
Bitcoin is a fascinating asset. Simultaneously a transactional tool and a speculative commodity, it's attracted the attention of investors almost since it first hit the market. Unfortunately, it's also incredibly volatile.
For that reason, while current market conditions are favorable for anyone considering buying Bitcoin, it is an asset you should purchase only at your own risk. Because while Bitcoin may have the potential for significant returns, you may also lose most of your investment. If that knowledge doesn't bother you, then by all means, purchase away.
Otherwise, there are better — less volatile — options for your capital.
FAQs for buying Bitcoin
What is a realistic Bitcoin price prediction for 2025?
Reality and price predictions rarely match up as forecasters have no way of predicting major events like Russia's war with Ukraine or the COVID-19 pandemic. On top of that, the further away the time period, the less realistic the prediction will be.
As such, there is a massive range for 2025 Bitcoin price forecasts. As of April 2024, forecasts for where the Bitcoin price might land in 2025 range from US$74,456.13 to US$270,929.12. We'll have to wait a a couple of years to see which are correct.
What does Cathie Wood say about Bitcoin?
ARK Invest CEO Cathie Wood is extremely bullish on Bitcoin, telling Bloomberg in February 2023 that her firm believes the cryptocurrency could reach a value of US$1 million by 2030. A year later, Wood hiked her 2030 bitcoin price prediction astronomically to US$75 trillion.
This is an updated version of an article first published by the Investing News Network in 2023.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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How Will the US Election Affect the Crypto Industry?
As the world continues to embrace digital currencies and blockchain technology, the cryptocurrency industry is solidifying its position on a broad scale as a key part of the global economy.
Six months in, 2024 has already been a big year for crypto, with milestones including a new all-time high for the Bitcoin price, and the approval of spot Bitcoin and Ether exchange-traded funds in the US.
Heading into the second half of the year, the US election is expected to have far-reaching implications for the crypto market in America and potentially beyond. Issues such as regulation, taxation and the integration of cryptocurrencies into the mainstream economy will be critical in shaping the future of this dynamic sector.
The stakes are high for crypto market participants who want to secure their interests in a rapidly evolving financial landscape. Perhaps unsurprisingly, this burgeoning industry has already become a major talking point in the US election cycle as crypto-friendly Congressional nominees and a favorable regulatory framework become a focus for voters.
A recent article by Coinbase examines the influence Gen Z and Millennial voters will have on this year’s election results. Voters from the two generations make up 40 percent of all eligible voters in 2024, and by 2028, they will account for more than half of the voting population. Research commissioned by Coinbase found that 51 percent of respondents from those generations would likely support candidates that support crypto-friendly policies.
As the crypto narrative continues to intertwine with the US election cycle, the choices made in the voting booth could well determine the trajectory of this transformative technology. The stage is set for a pivotal moment in the crypto industry's history, and the decisions made in the next few months will echo far into the future of finance.
How is the crypto sector influencing the US election?
While the US election is set to impact the crypto market, the reverse is also true — the industry is already influencing lawmakers at both the federal and state levels as voting day approaches.
In December 2023, in order to gain a toehold in the political sphere, a group of three affiliated super political action committees (PACs) backed by prominent figures in the crypto sphere revealed plans to invest a substantial US$78 million with the aim of supporting crypto-friendly candidates in upcoming political campaigns.
Fairshake, one of the group’s three affiliated super PACs, has now raised upwards of US$203 million through donations from major stakeholders, including significant contributions from the Winklevoss twins and companies such as Kraken, Coinbase (NASDAQ:COIN) and Electric Capital Partners. The group reportedly spent around US$10 million on attack ads in an attempt to sway voters against Representative Katie Porter (D-CA) in the race to represent California in the Senate. Porter, who has been outspoken against corporate interests and federal lobbyists, ultimately lost the race.
In January, CNBC reported on lobbying efforts by the Cedar Innovation Foundation, whose backers are unknown. Its aim was to unseat Senate Banking Chairman Sherrod Brown (D-OH) — a crypto cynic. Brown later supported stablecoin legislation tied to a package that included cannabis banking reform, which he has called a “high priority,” but emphasized that crypto bills must have guardrails and consumer protection to secure his vote.
Since President Joe Biden announced his withdrawal from the US Presidential race on July 21, the crypto industry has been thrust into a new political landscape. Managing Editor for Global Policy and Regulation at CoinDesk Nikhilesh De reported that sources told CoinDesk that Vice President Kamala Harris taking over the campaign will serve as a reset for the Democratic stance on cryptocurrency. Twenty-eight Democrats sent a letter to Democratic National Committee Chairman Jaime Harrison on July 26, calling for a “forward-looking approach to digital assets and blockchain technology.”
How is crypto currently regulated in the US?
The regulatory landscape for the crypto industry in the US is still evolving, and further developments are expected to occur in the coming years. As it stands, various government agenciesemploy diverse strategies to regulate different aspects of the industry, reflecting their unique mandates and objectives.
The US Securities and Exchange Commission (SEC) is the primary regulator of securities in the US and, under Chairman Gary Gensler, who was appointed by President Joe Biden, it has taken the view that many cryptocurrencies constitute securities and are therefore subject to federal securities laws.
The Commodity Futures Trading Commission (CFTC) is the primary regulator of futures and options contracts in the US. It is of the opinion that certain cryptocurrencies, such as Bitcoin and Ethereum, are commodities due to their decentralized nature and the fact that they are not backed by a government or other central authority.
Both regulators have taken action against crypto exchanges for breaking laws. Most notably, the CFTC brought charges against Binance founder Changpeng Zhao for violating the Commodity Exchange Act in March 2023. Meanwhile, the SEC has been involved in litigation against numerous crypto companies for years.
Majority party split on crypto regulation
Democrats appear divided on the best approach to crypto regulation. While some have cited concerns that overregulation could stifle innovation, other representatives, like Senator Elizabeth Warren (D-MA), have advocated for more stringent policies, citing threats to national security without proper money-laundering provisions in place.
That division became evident when a resolution to overturn the SEC’s Staff Accounting Bulletin 121 (SAB-121) passed in the House in early May. The resolution, which requires firms that provide custody for crypto assets to record them as liabilities, was primarily backed by Republicans, who argued it would reduce regulatory burdens, enable crypto innovation and challenge the SEC's evolving guidance on digital asset custody. Opponents said reversing the order would undermine the SEC’s authority, which put the measure in place to protect consumers and investors from fraud.
Despite Biden’s opposition to the resolution and his promise to veto the decision, 11 Democratic senators crossed party lines to vote in favor, including Senate Majority Leader Chuck Schumer. His vote to repeal SAB-121 may have been motivated by Republican nominee Donald Trump's recent support of crypto-friendly policies, which has put pressure on Democrats to reconsider their positions on crypto regulation to avoid losing votes from the crypto crowd.
Biden did ultimately veto SAB-121, but the split among Democrats, as well as the SEC’s recent approval of spot Bitcoin and Ether exchange-traded funds, and the passing of three crypto-related bills, has led some analysts to suggest that the party may be easing its approach to appease pro-crypto voters and gain the support of the crypto-backed super PACs.
Key US crypto legislation to watch
With cryptocurrencies becoming more mainstream, US lawmakers have been strongly encouraged to create a clear and comprehensive regulatory framework for this rapidly evolving industry.
FIT21 Act
The Financial Innovation and Technology for the 21st Century Act (FIT21) is the first federal bill specifically focused on cryptocurrencies to pass one chamber of Congress. It provides a comprehensive and clear regulatory framework, giving the CFTC greater regulatory authority for digital assets over the SEC.
Ranking members of the Democratic Party said they would not whip Democrat votes against FIT21 despite the party’s belief that it creates uncertainty and undermines established legal precedents in its current form. FIT21 received “overwhelming bipartisan support” in the House on May 22, passing with a vote of 279 to 136.
Former House Speaker Nancy Pelosi was one of the votes in favor of FIT21. When she was speaker, she accepted donations on behalf of the House Majority PAC from ex-crypto king Sam Bankman-Fried before his arrest in 2022. Sources for the American Prospect confirmed she was considering the motion days before the vote took place.
Some lawmakers are urging Congress to hold a Senate vote for FIT21 ahead of the November election, although this has been opposed by the president and the SEC.
Responsible Financial Innovation Act
For opponents, the Responsible Financial Innovation Act offers an alternative approach. The bill was a bipartisan effort that was reintroduced by Senators Cynthia Lummis (R-WYO) and Kirsten Gillibrand (D-NY) in July 2023. It has since been referred to the Committee on Banking, Housing and Urban Affairs.
The Act is similar to FIT21; however, there are also some differences between the two bills in terms of their specific provisions and approaches. For example, FIT21 places a greater emphasis on defining key terms and providing exemptions from duplicative regulations, while the Responsible Financial Innovation Act focuses more on consumer protection and combating illicit finance, goals that align with statements made by the White House.
Digital Asset Anti-Money Laundering Act
While the Responsible Financial Innovation Act seeks to provide a comprehensive framework for regulating digital assets, the Digital Asset Anti-Money Laundering Act aims to address concerns around money laundering and illicit finance in the digital asset space. The bill has 19 sponsors, including Republicans Lindsey Graham (R-SC) and Roger Marshall (R-KS), as well as Warren, a longtime political ally to the current president.
What does Harris think about crypto?
The Democrat’s presidential nominee is Kamala Harris, who is currently serving in the Biden administration as Vice President. This section will discuss Harris’ own positions on crypto alongside those of the Biden administration.
There has been heightened government engagement with the crypto sector under the Biden administration. He has been carefully navigating the crypto industry, aiming to balance innovation and economic growth with consumer protection and regulatory oversight.
In March 2022, Biden signed an executive order outlining a strategy to assess the risks and benefits of cryptocurrencies. It focused on six key areas, including consumer protection, responsible innovation and global competitiveness. The order also addressed the lack of coordination between government agencies by promoting a more unified approach.
Building on this move, the White House released a more detailed framework for responsible digital asset development in September 2022. It expanded upon the key areas identified in the initial executive order and provided further guidance for a coordinated, government-wide approach to managing the risks and harnessing the benefits of digital assets.
It is currently not known whether a Harris administration would enact the crypto policies laid out in Biden's 2025 budget proposal, which includes measures that prevent investors from immediately selling and repurchasing digital assets, as well as one that would require more traditional reporting methods for digital asset transactions. The budget also includes an excise tax on electricity used to mine cryptocurrencies, which is expected to generate US$10 billion in revenue in 2025 and over US$42 billion over 10 years.
As discussed earlier, the Democratic Party struggled to maintain a unified approach to cryptocurrencies under the Biden administration. Harris has yet to take an official stance on the issue, and any mention of crypto regulation was noticeably absent from the Democratic Party’s 2024 Platform.
However, crypto Dems have some reasons to be hopeful of a moderate approach. Harris has ties to the tech industry going back to her time as an Attorney General in California in the 2010s, where she was influential in facilitating an agreement on privacy policies.
In early August, Harris was also publicly backed by crypto platform Uphold board member JP Thieriot, and she has reportedly been meeting with industry officials in the weeks leading up to the August 14 online “townhall” event of crypto Democrats, Crypto4Harris, which does not have ties to the official campaign.
What does Trump think about crypto?
In response to the crypto industry's growing influence in the political sphere, Trump also appears to have shifted toward a supportive stance in recent months. After initial skepticism, his forays into the crypto world include the launch of his second collection of Trump Cards, a non-fungible token (NFT) collection on the Polygon blockchain.
In May, Trump became the first presidential nominee to accept donations in digital currencies, and in June, he advocated on Truth Social for all future Bitcoin mining to be done in the US.
Also in May, Lee Bratcher, founder and president of the Texas Blockchain Council, shared insights with Coindesk on Trump’s interest in crypto, suggesting he may have been influenced by former Republican presidential candidate Vivek Ramaswamy, who was supportive of cryptocurrencies and blockchain technology during his brief campaign.
“Trump looks to Vivek on tech and digital asset policy,” Bratcher said. “When he saw how Vivek captured the Republican voter — and more centrist (voters) than Trump can capture — he’s probably more interested in that (policy)."
Trump appears to be driven by a desire to distinguish himself from political opponents who favor a more active regulatory approach, as well as crypto's increasing popularity and potential.
In May, he criticized Biden, the Democratic party and Gensler at a dinner for buyers of his NFT cards, telling pro-crypto attendees that they “better vote for Trump” if they want crypto in “any form.”
While he hasn’t explicitly said how he plans to tax digital assets, Trump is a prominent proponent of lower taxes. His administration signed the Tax Cuts and Jobs Act into law in 2017, the largest tax code change made in decades. Provisions within the act are set to expire in 2025, although Trump has said he will make them permanent if he is re-elected. The Congressional Budget Office has estimated that if they become permanent, these tax cuts would deduct billions from the US revenue base annually beginning in 2027.
At a rally in New Jersey in mid-May, Trump promised voters that he would impose further tax cuts, lowering the maximum capital gains tax rate from 20 percent to 15 percent. This would affect crypto assets, as the Internal Revenue Service (IRS) treats cryptocurrencies as property, making transactions subject to capital gains and other taxes.
According to Section 1031 of the tax code, some capital gains taxes can be deferred for like-kind exchanges — in other words, investments that are of the same nature or character, even if they differ in size or value. The IRS concluded in 2021 that only “real property” can qualify for tax deference as like-kind exchanges, excluding swaps of cryptocurrency. However, some attorneys disagree with that classification.
Trump spoke at the 2024 Bitcoin Conference in Nashville on July 27, promising friendly regulations and the creation of a strategic Bitcoin stockpile for the US. A draft of legislation to support a Bitcoin reserve was introduced by Senator Cynthia Lummis (R-Wy) at the event following Trump’s speech. The draft legislation for the reserve fund briefly mentions that it would contribute to reducing the US national debt, but it lacks specific details on how this would be achieved. Trump was notably tight-lipped on the issue during a recent interview with Elon Musk.
It’s worth noting that a special-interest group called Project 2025 has developed a 900 page conservative policy agenda called the Mandate for Leadership that includes strategies to shift the power of the IRS and other agencies toward the executive branch. Additionally, the document recommends that the SEC and the CFTC collaborate to delineate the distinction between digital assets that are classified as securities and those that are considered commodities.
The group was organized by the Heritage Foundation, a conservative think tank that has influenced Republican policies in the past, including during Trump’s presidency.
How did the presidential debate affect Bitcoin?
Trump and Harris battled it out during their first debate last night, September 10 at 9:00 EDT. According to a poll conducted by CNN, 63 percent of debate watchers said that Harris outperformed Trump.
Despite crypto’s influence on the campaign trail as recently as one month ago, neither candidate was asked about cryptocurrency, and neither brought it up. Big Tech and artificial intelligence were largely not touched on as well, apart from a brief quip during heated exchanges involving the economy and foreign policy.
Bitcoin’s price fell quickly early in the debate and continued to retreat throughout it. By the time midnight had hit, Bitcoin’s value had fallen to US$56,802, down 1.46 percent from its price at the start of the debate, which coincided with the opening of day trading in Asia. Just before 11:00 am EDT, its price had fallen a further 2 percent to US$55,573, but it bounced back to nearly US$58,000 by 2:25 p.m.
Investor takeaway
Trump’s statements in recent months suggest a permissive stance toward crypto if he is elected. A Harris administration could be more open and forward-thinking than the cautious approach taken by the current Biden administration, but will likely prioritize careful decision-making.
Most crypto experts advocate for a regulated approach, arguing that increased regulatory efforts have served as an incentive for more serious investors. Indeed, this regulatory push has been a significant catalyst for crypto’s impressive performance over the past seven to eight months. Ultimately, the outcome of the election will have important implications for the future of crypto regulation and the broader crypto industry.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Bitcoin: A Price History of the First Cryptocurrency (Updated 2024)
Bitcoin, the most well-known cryptocurrency, paved the way for the cryptocurrency asset class.
Now the cryptocurrency of choice, its meteoric rise was unlike any other commodity, resource or asset. Bitcoin’s price rose more than 1,200 percent from March 2020 to reach US$69,044 on November 10, 2021.
The currency showcased its famous volatility in the following year, falling as low as US$15,787 by November 2022 amid economic uncertainty and a wave of negative media coverage.
The cryptocurrency started 2024 just below US$45,000 and has seen substantial gains in the first half of this year. Bitcoin reached its new all-time high price of US$73,115 on March 11, 2024.
So, where did Bitcoin start, and what has spurred Bitcoin's price movements in recent years? Read on to find out.
What was Bitcoin's starting price?
When Bitcoin started trading in 2009, its starting price was a minuscule US$0.0009, making its price movements since then even more impressive.
Created as a response to the 2008 financial crisis, the concept of Bitcoin was first introduced in a nine-page white paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” on October 31, 2008, on a platform called Metzdowd.
The manifesto was penned by a notoriously elusive person (or persons) who used the pseudonym Satoshi Nakamoto. The author(s) laid out a compelling argument and groundwork for a new type of cyber-currency that would revolutionize the monetary system.
Cryptographically secured, Bitcoin was designed to be transparent and resistant to censorship, using the power of blockchain technology to create an immutable ledger preventing double-spending. The true allure for Bitcoin’s early adopters was in its potential to wrestle power away from banks and financial institutes and give it to the masses.
This was especially enticing as the fallout from the 2008 financial collapse ricocheted internationally. Described as the worst financial crisis since the Great Depression, US$7.4 billion in value was erased from the US stock market in 11 months, while the global economy shrank by an estimated US$2 trillion.
On January 3, 2009, the Genesis Block was established, marking the beginning of Bitcoin’s blockchain, onto which all additional blocks have been added. The Genesis Block contained the first 50 Bitcoins ever created and a simple message: “The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks.”
Many believe the message hints at Bitcoin’s mission, as it references an article in The London Timesthat criticized the British government’s inadequate response to the financial crisis of 2007 to 2008, particularly the government’s inability to provide effective relief and support to the struggling economy.
On January 12, 2009, Nakamoto sent the first Bitcoin transaction to Hal Finney, a computer scientist and early Bitcoin enthusiast. The transaction involved 10 Bitcoins and was a crucial milestone in the cryptocurrency’s development and adoption.
News of the cryptocurrency continued to spread around the Internet, but its value did not rise above US$0 until October 12, 2009, when a Finnish software developer sent 5,050 Bitcoins to New Liberty Standard for US$5.02 via PayPal, thereby establishing both the value of Bitcoin and New Liberty Standard as a Bitcoin exchange.
The first time Bitcoin was used to make a purchase was on May 22, 2010, when a programmer in Florida named Laszlo Hanyecz offered anyone who would bring him a pizza 10,000 Bitcoin in exchange. Someone accepted the offer and ordered Hanyecz two Papa John’s pizzas for US$25. The 10,000 Bitcoin pizza order essentially set Bitcoin’s price in 2010 at around US$0.0025.
Bitcoin’s price finally broke through the US$1 mark in 2011, and moved as high as US$29.60 that year. However, it fell back down and remained relatively muted in 2012.
Bitcoin’s price saw its first significant growth in earnest in 2013, the year it broke through both US$100 and US$1,000. It climbed all the way to US$1,242 in December 2013.
From that peak, Bitcoin’s price began to fall, and it spent most of 2015 in the US$200 range. Its price turned around in December 2015 and began to climb again, and it ended the year at around US$430.
Serenko Natalia / Shutterstock
When did the Bitcoin price start to grow?
January 1, 2016, marked the beginning of Bitcoin’s sustained price rise. It started the year at US$433 and ended it at US$989 — a 128 percent value increase in 12 months.
That year, several contributing factors led to Bitcoin’s rise in mainstream popularity. The stock market experienced one of its worst first weeks ever in 2016, and investors began turning to Bitcoin as a “safe-haven” stock amidst economic and geopolitical uncertainty.
2016 also saw the Brexit referendum in the UK in June and the election of Donald Trump to the White House in November, both events that coincided with a bump in Bitcoin’s price.
Bitcoin continued its ascent, while various industries continued to take an interest in blockchain technology, particularly technology and finance. In February, a group of investors that included IBM (NYSE:IBM) and Goldman Sachs invested US$60 million in a New York firm developing blockchain technology for financial services, Dig Asset Holdings. Bitcoin was trading at US$368.12 on February 2, down a bit from January, but two months later it was US$418.
In May the price of Bitcoin experienced a significant price increase, rising by 21 percent to US$539 at the end of the month. Its price went higher into June, peaking at US$764 on June 18. After that, it fell sharply and spent the summer in the high US$600 range. It dropped to US$517 on August 1 and started its climb all over again.
Microsoft (NASDAQ:MSFT) and Bank of America Merrill Lynch partnered for a finance transacting endeavor in September. Not much price movement was observed, but Bitcoin remained on a steady upward trajectory after that. In October, Ripple partnered with 12 banks in a trial that used its native digital currency token XRP to facilitate cross-border payments. Institutional investment bolstered investor confidence, and Bitcoin went from US$629 to US$736 between October 20 and November 20.
Bitcoin’s popularity continued into 2017, and it rose from US$1,035.24 in January to US$18,940.57 in December. Futures contracts began trading on the Chicago Mercantile Exchange in December 2017, and Bitcoin began to be more widely perceived as a legitimate investment rather than a passing fad. FOMO flooded the market. What ensued was a frenzy of media coverage featuring celebrity endorsements and initial coin offerings (ICOs) that spilled into 2018.
Regulators began to take notice and issued warnings and guidelines meant to protect investors and mitigate risks associated with digital assets, which only seemed to make people want them more.
Through it all, Bitcoin remained the “gold standard” of cryptocurrencies, yet its price was subject to extreme volatility. At the beginning of 2019, it was around US$3,800, it reached nearly US$13,000 in June, but by December 2019 Bitcoin was trading at around US$7,2000.
Bitcoin price chart in US dollars from 2011 until September 9, 2024.
Bitcoin price chart via TradingEconomics.com.
What factors led to Bitcoin's rise in the early 2020s?
2020 proved a testing ground for the digital coin’s ability to weather financial upheaval. Starting the year at US$6,950.56, a widespread selloff in March triggered by the pandemic brought its value to US$4,841.67 — a 30 percent decline.
The low created a buying opportunity that helped Bitcoin regain its losses by May. The rally continued throughout 2020, and the digital asset ended the year at US$29,402.64, a 323 percent year-over-year increase and a 507 percent rise from its March drop.
By comparison, gold, one of the best-performing commodities of 2020, added 38 percent to its value from the low in March through December, setting what was then an all-time high of US$2,060 per ounce in August.
Bitcoin’s ascent continued in 2021, rallying to an all-time high of US$68,649.05 in November, a 98.82 percent increase from January. Much of the growth in 2021 was attributed to risk-on investor appetite.
Increased money printing in response to the pandemic also benefited Bitcoin, as investors with more capital looked to diversify their portfolios. The success of the world’s first cryptocurrency amid the market ups and downs of 2020 and 2021 led to more interest and investment in other coins and digital assets as well. For example, 2021 saw the rise of non-fungible tokens (NFTs), unique crypto assets that are stored, sold and traded digitally using blockchain technology.
Almost immediately following its record close above US$69,000 in November 2021, Bitcoin’s value began to fall once again. Market uncertainty weighed especially heavily on Bitcoin in 2022. During the second quarter of that year, values dived below US$20,000 for the first time since December 2020.
On May 7, 2022, Curve Whale Watching posted the first sign that confidence in Terra Luna, a cryptocurrency pegged to the US dollar, was waning after 85 million of its stablecoin UST exchanged for less than the 1:1 ratio it was supposed to maintain. This triggered a massive sell-off that brought Luna’s value down 99.7 percent and eventually resulted in the Terra tokens ceasing to be traded on major crypto exchanges.
Terra’s collapse had a domino effect on the industry as investors’ faith in crypto crumbled. In July, the Celsius network, a platform where users could deposit crypto into digital wallets to accrue interest, halted all transfers due to “extreme market conditions”, driving down the price of Bitcoin even further to US$19,047, a 60 percent decline from January 2022. In July, Celsius filed for Chapter 11 bankruptcy.
However, the biggest shake-up to the industry came in November when CoinDesk published findings that cryptocurrency trading firm Alameda Research led by Sam Bankman-Fried had borrowed billions of dollars of customer funds from crypto exchange and sister company FTX. Over a third of Alameda’s assets were tied up in FTT, the native cryptocurrency of FTX.
Once this news broke, investors withdrew their funds en masse, causing a liquidity crunch that collapsed FTX. Bankman-Fried was later arrested and sentenced to 25 years in federal prison on counts of money laundering, wire fraud and securities fraud.
Although Bitcoin was never implicated, the fallout of the FTX scandal led to a crisis of confidence across the sector and increased scrutiny from regulators and law enforcement. By the end of 2022, prices for Bitcoin had moved even lower to settle below US$17,000.
What was the highest price for Bitcoin?
Bitcoin set a new all-time high price on March 14, 2024, when it reached US$73,737.94 per BTC. This new highest price came after more than a year of slowly climbing back up from its 2022 lows.
Bitcoin's powerful performance cannot be understated as evidenced by its price performance in the later half of 2023 and so far in 2024.
Concerns with the banking system led the price of Bitcoin to rally in March 2023 to US$28,211 by March 21 after the failure of multiple US banks alarmed investors.
In Q2 2023, Bitcoin continued its ascent, stabilizing above US$25,000 even as the US Securities Exchange Commission (SEC) filed lawsuits against Coinbase Global (NASDAQ:COIN), along with Binance and its founder Changpeng Zhao.
Although it looked like bad news for the sector, Bitcoin stayed steady, holding above US$25,000. This was supported by BlackRock (NYSE:BLK), the world's largest asset manager, filing for a Bitcoin exchange-traded fund with the SEC on June 15.
Bitcoin's price jumped above US$30,000 on June 21, and on July 3, the crypto hit its highest price since May 2022 at US$31,500. It held above US$30,000 for nearly a month before dropping just below on July 16. By September 11, prices had slid further to US$25,150.
Heading into the final months of the year, the Bitcoin price benefited from increased institutional investment on the prospect of the SEC approving a bevy of spot Bitcoin exchange-traded funds by early 2024. In mid-November the price for the popular cryptocurrency was trading up at US$37,885, and by the end of the year that figure had risen further to US$42,228 per BTC.
Once the SEC’s approval of 11 spot Bitcoin ETFs hit the wires, the price per coin jumped again to US$46,620 on January 10, 2024. These investment vehicles were a major driving force behind the more than 42 percent rise in value for Bitcoin in February; it reached US$61,113 on the last day of the month.
On March 4, Bitcoin surged almost 8 percent in 24 hours to trade at US$67,758, less than 2 percent away from its previous record, and on March 11 it hit a new milestone, surpassing the US$72,000 mark. Three days later, on March 14, Bitcoin reached its highest-ever recorded price of US$73,737.94, surpassing the market cap of silver.
How did the 2024 Bitcoin halving affect its price?
Bitcoin often surges leading up to the halving events, which is when Bitcoin rewards are halved for miners. The most recent came in April when the reward for completing a block was cut from 6.25 to 3.125 Bitcoin.
Several sources cited the 2024 halving as one of the forces that drove the price of Bitcoin to its newest high.
The halving occurred at around 8:10 p.m. EDT on a Friday, and Bitcoin’s price remained stable within the US$63,000 to US$65,000 range over the ensuing weekend. On April 22, the Monday following the halving, it was slightly above US$66,000.
While Bitcoin's price stayed relatively stable, the cryptocurrency's trading volume experienced significant fluctuations through that weekend, with a 45 percent increase from April 19 to April 20 followed by a 68 percent decline on April 21. Between April 30 and May 3, it fell as low as US$56,903 following the Federal Reserve’s April policy meeting, which did not produce a rate cut.
Reports that the SEC was moving to approve spot Ether ETFs in May sent the price of Bitcoin climbing again alongside that of Ether, the native token of the Ethereum blockchain, which serves as the foundation for these ETFs. Bitcoin passed US$71,000 for the second time ever at 8:00 p.m. EDT on May 20, days before the SEC approved spot Ether ETFs on May 23.
Bitcoin hovered between US$67,000 and US$69,000 for the remainder of the month and into the middle of June. It fell back below US$67,000 on June 13 and moved lower the next day when the Federal Reserve opted to delay lowering interest rates once again.
Losses picked up speed through late June and continued in July, with analysts pointing to uncertainty over post-election regulations, Germany’s sell-off of seized Bitcoin assets and concerns about the impact of the defunct trading platform Mt. Gox on the token market. Bitcoin dropped to a two-month low of US$55,880 on July 8, but quickly recovered most of its losses after Federal Reserve Chairman Jerome Powell’s congressional testimony on July 9 that signaled rate cuts may not be far off.
As crypto gains wider acceptance and accessibility, with more traditional financial institutions and products incorporating digital assets, the type of risk that Bitcoin represents has evolved. Bitcoin was primarily seen as a highly speculative alternative investment. Now, with expanding institutional interest, it is increasingly seen as a ”risk-on” asset – meaning its price movements are influenced by market sentiment, investor confidence and broader economic conditions.
A rise in Bitcoin’s price ensued after the July 13 assassination attempt of US presidential candidate Donald Trump, who has been actively endorsing the crypto industry for support. Bitcoin rose from US$57,899 to US$66,690 in the week following the incident as the odds of a Trump victory were seen to improve, highlighting the impact of regulatory uncertainty on the market. However, Bitcoin’s price didn’t experience any significant pullbacks in the week after current US President Joe Biden dropped out of the race on July 21 and current Vice President Kamala Harris took over as the new nominee.
Other significant developments affecting Bitcoin during recent weeks include the underwhelming performance of spot Ether ETFs, fears of a US government Bitcoin sell-off, Trump’s proposed national Bitcoin stockpile and Trump’s declining chances of winning the election as support for Harris snowballs. The biggest driver of price volatility came in early August when an economic scare triggered a significant sell-off event across many global markets and cryptocurrencies.
Bitcoin price chart in US dollars from January 1, 2024, until September 9, 2024.
Bitcoin price chart via TradingEconomics.com.
What is Bitcoin at today?
As of 6:00 p.m. EDT on September 9, Bitcoin is valued at US$57,522.01 and its market cap is US$1.14 trillion.
August was a tough month for Bitcoin. The price of Bitcoin fell alongside digital assets and the broader stock market on August 5 in a sell-off event triggered by a series of events including weaker-than-expected economic data the prior Thursday (August 2). An unexpected interest rate hike in Japan on July 31 resulting in an unwinding in Yen carry trades also contributed, with Asian markets experiencing sell-offs not seen since the pandemic. Panic in the Asian market heightened fears that the US was headed into a recession, prompting investors to liquidate high-risk assets like Bitcoin and other cryptocurrency.
Bitcoin lost over 18 percent of its value in a 24-hour period, briefly dipping below US$50,000 for the first time since February. However, after the initial sell-off, the market began to stabilize as investors took a more measured approach to assessing the long-term implications of the economic data.
While the broader stock market indices regained their footing in the days following the rout, over the weekend of August 10 and 11, Bitcoin dropped 4.8 percent to US$58,430, with market watchers predicting further declines due to technical weakness.
As the week progressed, unpredictable market sentiment was on full display as Bitcoin experienced price fluctuations ranging between US$60,700 and US$56,700, a difference of nearly 7 percent, with no obvious catalysts driving these swings. While uplifting inflation data boosted the stock market, Bitcoin struggled to break past a US$60,000 ceiling, coming close during brief intervals only to see its price retreat hours later.
Bitcoin’s price jumped 5 percent on August 23 to US$64,183 after the Federal Reserve gave the green light to begin lowering interest rates in September. However, this price couldn’t be sustained, and by August 27 Bitcoin plummeted to US$58,059.
A pattern of rallies followed by profit-taking leading to price drops persisted in the final days of August and extended into the first week of September.
FAQs for investing in Bitcoin
What is a blockchain?
A blockchain is a digitized and decentralized public ledger of all cryptocurrency transactions.
Blockchains are constantly growing as completed blocks are recorded and added in chronological order. The mechanism by which digital currencies are mined, blockchain has become a popular investment space as the technology is increasingly being implemented in business processes across a variety of industries. These include banking, cybersecurity, networking, supply chain management, the Internet of Things, online music, healthcare and insurance.
How to buy Bitcoin?
Bitcoin can be purchased through a variety of crypto exchange platforms and peer-to-peer crypto trading apps, and then held in a digital wallet. These include Coinbase Global, CoinSmart Financial (OTC Pink:CONMF,NEO:SMRT), BlockFi, Binance and Gemini.
What is the Bitcoin halving?
Unlike traditional currencies that can increase circulation through printing, the number of Bitcoins is finite. This limit is a core function of Bitcoin's algorithm and was designed to offset inflation by maintaining scarcity. There are 21 million in existence, of which 19,787,175 are in circulation as of August 8. This means there are 1,212,825 still unmined.
A new Bitcoin is created when a Bitcoin miner uses highly specialized software to complete a block of transaction verifications on the Bitcoin blockchain. Roughly 900 Bitcoins are currently mined per day; however, after 210,000 blocks are completed, a Bitcoin protocol called a halving automatically reduces the number of new coins issued by half. Halving not only counteracts inflation but also supports the cryptocurrency’s value by ensuring that its price will increase if demand remains the same.
Halvings have occurred every four years since 2012, with the most recent happening on April 19, 2024. The next halving is expected to occur in 2028.
Bitcoin’s halving has significant implications for the cryptocurrency’s mining activity and supply because of how Bitcoin mining works. Currently, miners are paid 3.125 Bitcoin for every block they complete. After the next halving, the pay rate will lower to 1.5625 Bitcoin for every completed block for the next four years.What is Coinbase?
Coinbase Global is a secure online cryptocurrency exchange that makes it easy for investors to buy, sell, transfer and store cryptocurrencies such as Bitcoin.
How does crypto affect the banking industry?
Cryptocurrencies are an alternative to traditional banking, and tend to attract people interested in assets that are outside mainstream systems. According to data from Statista, 53 percent of crypto owners are between the ages of 18 and 34, showing that the industry is drawing younger generations who may be interested in decentralized digital options.
Privacy is a key draw for cryptocurrency owners, as is the fact that they are separated from third parties such as central banks. Additionally, crypto transactions, including purchases, sales and transfers, are often quick and have fewer associated fees than transactions going through the banking system in the typical manner.
That said, banks are starting to notice how popular cryptocurrencies are. As Bitcoin and its compatriots become increasingly mainstream, many banks have begun to invest in cryptocurrencies and blockchain companies themselves.
Is Bitcoin a good investment anymore?
While Bitcoin has reached new heights in 2024, one of its well-known features is its volatility. Investors who are more accepting of risk could look to the cryptocurrency space as there historically has been money to be made, and Bitcoin is regaining value after plummeting in 2022. However, there is also historically money to be lost, and investors who prefer to take smaller risks should look towards other avenues.
For more information on investing in Bitcoin right now, check out our article Is Now a Good Time to Buy Bitcoin?
Who has the most invested in Bitcoin?
Satoshi Nakomoto, the mysterious founder of Bitcoin, is believed to also be the biggest holder of the coin. Analysis into early Bitcoin wallets has revealed that Nakamoto likely owns over 1 million of the nearly 19.5 million Bitcoins in existence.
Does Elon Musk own Bitcoin?
Tesla and Twitter CEO Elon Musk’s association with both Bitcoin and the meme coin Dogecoin is well known, and both his tweets and Tesla’s actions have influenced the cryptocurrencies’ trajectories over the years.
While it is unknown just how much he owns, Musk has disclosed that he personally has holdings of Bitcoin and Dogecoin, as well as Ether. It was revealed in September 2023 that Musk may be funding Dogecoin on the quiet, according to Forbes.
As for Tesla, the company purchased US$1.5 billion of Bitcoin in 2021, but sold 75 percent of that the next year. As of February 2024, the EV maker's Bitcoin holdings were estimated at 9,720 Bitcoin, the third-largest bitcoin holdings for a publicly traded company. In a January 2024 post on his social media platform X, Musk said “I still own a bunch of Dogecoin, and SpaceX owns a bunch of Bitcoin."
This is an updated version of an article first published by the Investing News Network in 2021.
Don’t forget to follow us @INN_Technology for real-time updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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Top Canadian Crypto Mining Stocks
Canadian crypto stocks offer investors exposure to the booming cryptocurrency markets.
Cryptocurrencies are digital currencies that are independent of traditional banking systems. They exist on a blockchain, a secure and immutable transaction record shared among many computer nodes in a network.
The most well-known cryptocurrency is Bitcoin, and the process of generating new Bitcoin units is called mining. When Bitcoin was new, it was easy enough for tech-savvy individuals to mine their own tokens using store-bought hardware. However, as Bitcoin has grown in popularity, mining has become a difficult and expensive process.
That’s why these days most mining is done at the industrial level. Large corporations with capital and the right equipment at their disposal can mine tens or even hundreds of Bitcoin every day. Buying shares of companies that mine crypto or provide crypto services is a way for investors to reap the potential benefits this industry has to offer without risking major losses.
Here Investing News Network has rounded up the Canadian crypto miners and crypto-related companies with the biggest yearly share price gains. Figures were obtained using TradingView’s stock screener on August 30, 2024, and all data was accurate at the time. Companies with share prices above C$10 million were considered.
1. Bitcoin Well (TSXV:BTCW)
Yearly gain: 88.89 percent; market cap: C$12.67 million; current share price: C$0.85
Established in 2013, Bitcoin Well makes using bitcoin easy and accessible via an ecosystem of products and services offered through its two revenue-generating business units. The first is its Canada-wide network of Bitcoin ATMs, and the second is its online Bitcoin portal, which is live in Canada as of November 2022 and the entire United States as of February 2024.
Shares of Bitcoin Well reached a yearly high of C$0.25 on March 4 after it announced a record number of signups to its Bitcoin Portal in February, in addition to a brokered financing agreement with Haywood Securities.
More recently, the crypto firm reported its Q2 2024 financials highlighting revenues of C$23.3 million for the quarter, up 54 percent over the previous quarter. For the first half of the year, revenues came in at C$39.4 million, up 43 percent from the same period last year.
2. Cypherpunk Holdings (CSE:HODL)
Yearly gain: 68.42 percent; market cap: C$25.54 million; current share price: C$0.16
Cypherpunk Holdings identifies and invests in high-potential opportunities in blockchain and cryptocurrency technologies and companies. Its investment portfolio includes secured crypto wallet-tech firm NGRAVE; and blockchain protocol company Chia Network. The company has strongly increased its focus on the crypto Solana in 2024.
The company’s stock has been trending upward over the past year, to reach a yearly high of C$0.18 on July 26. This came shortly after Cypherpunk announced that it had significantly increased its SOL holdings, which were zero on March 31, 2024, to 63,003.953 SOL, or C$13.97 million, as of July 16. In addition, the company reported that it's operating its own SOL validator, and has staked its own SOL node, with 49,917 SOL.
3. Bitfarms (TSX:BITF)
Yearly gain: 50.78 percent; market cap: C$1.32 billion; current share price: C$2.91
One of the largest Canadian Bitcoin miners, Bitfarms mines Bitcoin using state-of-the-art data centers powered in part by hydroelectricity and locally sourced natural gas. With 12 operating data centers and a hash rate of 11.3 EH/s, it produces an average of 8.2 bitcoin per day.
Bitfarm's Q2 2024 financial report released on August 8 highlights revenues of C$42 million, down 16 percent over the previous quarter and up 17 percent year-over-year. The company has "made significant progress expanding its geographically diversified portfolio, adding 220 MW of capacity in Paraguay and Pennsylvania," according to the press release.
Later in August, Bitfarms announced a definitive merger agreement to acquire crypto asset management firm Stronghold Digital Mining (NASDAQ:SDIG).
This pure-play Bitcoin mining stock saw its shares reach their highest value over the past year on February 16, closing at C$4.86 per share.
4. DMG Blockchain Solutions (TSXV:DMGI)
Yearly gain: 41.18 percent; market cap: C$81.53 million; current share price: C$0.48
DMGI Blockchain Solutions is a vertically integrated blockchain and crypto company that helps users monetize the blockchain environment by delivering digital solutions like its Blockseer software platform, which allows traders to monitor and track their transactions on the Bitcoin and Ethereum networks.
Its business model consists of two segments, Core and Core+. Core focuses on crypto infrastructure operations, deriving its revenue from rewards and transaction fees, hosting services and hardware sales to industrial crypto miners. Core+ deals with data analysis and forensic services.
In its fiscal year Q3 2024 report, DMG shared revenues of C$8.3 million, up 11 percent over the prior year. The company attributed the growth to a 5 percent increase in self-mining revenues.
Although shares in DMG have been trading downward since hitting a yearly high of C$0.77 on December 27, 2023, its stock price gain year-over-year is still more than 41 percent.
5. Digihost Technology (TSXV:DGHI)
Yearly gain: 22.86 percent; market cap: C$53.1 million; current share price: C$1.72
Digihost Technology is a blockchain technology company based in the US. It focuses on Bitcoin mining, but has plans to diversify and expand its mining operations to include other cryptocurrencies as well. Its operations are maintained with its own crypto accounting and tax software, Balance, and it is expanding its total number of miners in 2024.
Shares in Digihost traded as high as C$3.32 back on December 27, but have struggled to hang onto those gains throughout 2024. Nevertheless, the Canadian Bitcoin mining company is still up by more than 22 percent year-over-year as of August 30.
The company's Q2 2024 revenues were up 57 percent over the same quarter in the previous year to reach US$9.23 million.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
13 Canadian Crypto ETFs (Updated 2024)
Cryptocurrencies such as Bitcoin and Ethereum offer an alternative route for building and storing wealth. While directly holding these digital assets is a popular option, investors are also clamoring for financial products such as crypto exchange-traded funds (ETFs).
Canada first launched Bitcoin and Ethereum ETFs in 2021. These Canadian Bitcoin and Ethereum ETFs allow investors to place returns in tax-sheltered accounts like tax-free savings accounts or registered retirement savings plans.
“There is a high demand for a Bitcoin product that has all the features that people love about ETFs — that they trade on an exchange, that they’re liquid,” Ross Mayfield, investment strategy analyst at Robert W. Baird & Co., told Bloomberg in mid-2021.
Interest has only increased since then. Sean Farrell, head of digital asset strategy at Fundstrat, wrote in mid-2023 that the Bitcoin ETF category at large has the potential to surpass the precious metals ETF market in terms of asset value. "Bitcoin ETF eventually could become >$300 billion category," he stated in the note.
Ethereum ETFs have also picked up steam and become a major talking point. Ethereum is the most widely used blockchain technology, and Ether, the digital currency of this platform, is the second largest cryptocurrency after Bitcoin.
With that in mind, it’s worth taking a look at the currently available Canadian cryptocurrency ETFs. The list below includes 13 options available on the Canadian market sorted by assets under management, and all data presented is current as of August 23, 2024.
1. Purpose Bitcoin ETF (TSX:BTCC)
Assets under management: C$2.3 billion
Billed as the world's first physically settled Bitcoin ETF, the Purpose Bitcoin ETF launched in February 2021 and is backed by Bitcoin in cold storage. This means the fund allows investors to add and sell Bitcoin with no digital wallet required.
Hosted by Canadian investment company Purpose Investments, the Purpose Bitcoin ETF is backed by 26,983.5 Bitcoins and has a management expense ratio of 1 percent.
2. CI Galaxy Bitcoin ETF (TSX:BTCX.B)
Assets under management: C$754.17 million
Launched in March 2021, the CI Galaxy Bitcoin ETF was born out of a partnership between cryptocurrency leaders Galaxy Fund Management and CI Global Asset Management. Galaxy Fund Management is part of Galaxy Digital, a diversified financial services firm with a focus on digital assets and the blockchain technology sector.
The ETF's objective is to give investors exposure to Bitcoin via an institutional-quality fund platform, as its holdings are wholly Bitcoin and are kept in cold storage. At 0.4 percent, this fund boasts one of the lowest management fees of all the crypto funds on the market.
3. Fidelity Advantage Bitcoin ETF (TSX:FBTC)
Assets under management: C$506.30 million
The newest Bitcoin fund on this list, the Fidelity Advantage Bitcoin ETF, launched in November 2021. It offers the security of Fidelity’s in-house cold storage services for its holdings.
While it previously had a management fee of 0.4 percent, in line with the CI and Galaxy funds, the Fidelity Advantage Bitcoin ETF lowered it in January 2024 to an ultra-low management fee of 0.39 percent.
4. CI Galaxy Ethereum ETF (TSX:ETHX.B)
Assets under management: C$455.29 million
The CI Galaxy Ethereum ETF, another collaboration between CI and Galaxy, offers investors exposure to the spot Ethereum price through Ether holdings in cold storage. The fund launched on April 20, 2021, the same day as two of the other Ether ETFs on this list.
At the time, CI Global Asset Management suggested that “owning Ether is similar to owning a basket of early-stage, high-growth technology stocks.”
The CI Galaxy Ethereum ETF has notably low management fees of just 0.4 percent.
5. Purpose Ether ETF (TSX:ETHH)
Assets under management: C$369.30 million
The Purpose Ether ETF is a direct-custody Ether ETF that launched on April 20, 2021. This fund holds 98,611 Ether, which it stores in cold storage.
The Purpose Ether ETF offers investors exposure to the daily price movements of physically settled Ether tokens with a management fee of 1 percent.
6. 3iQ CoinShares Bitcoin ETF (TSX:BTCQ)
Assets under management: US$299.41 million
Launched in March 2021, the 3iQ CoinShares Bitcoin ETF tracks the price movement of Bitcoin in US dollar terms, and holds its Bitcoin assets in cold storage. This ETF has a management fee of 1 percent. Figures for this ETF were accurate as of July 31 2024, according to the fund's website.
7. Evolve Bitcoin ETF (TSX:EBIT)
Assets under management: C$223.38 million
Evolve ETFs partnered with cryptocurrency experts, including Gemini Trust Company, CF Benchmarks, Cidel Bank & Trust and CIBC Mellon Global Services, to launch the Evolve Bitcoin ETF. The fund, which holds its own Bitcoin, has a management fee of 0.75 percent.
Launched a week after the Purpose Bitcoin ETF, its holdings of Bitcoin are priced based on the CME CF Bitcoin Reference Rate, a once-a-day benchmark index price for Bitcoin denominated in US dollars.
8. Purpose Bitcoin Yield ETF (TSX:BTCY)
Assets under management: C$105.5 million
The Purpose Bitcoin Yield ETF uses a covered call strategy to generate yield for investors, which involves writing call options on Bitcoin. Call options give the buyer an option to purchase an asset at a specific price on or before a specific date.
Its structure allows the fund to earn income from option premiums while providing investors with exposure to Bitcoin's price movements. Its distributions are paid monthly.
9. Purpose Ether Yield ETF (TSX:ETHY)
Assets under management: C$63.4 million
Like the Purpose Bitcoin Yield ETF, the Purpose Ether Yield ETF offers investors an opportunity to invest in Ether while also generating yield. Purpose Investments lends a portion of its Ether holdings to institutional borrowers and earns interest on those loans.
Investors who purchase shares of this ETF receive a portion of the interest earned in monthly distributions.
10. Evolve Ether ETF (TSX:ETHH)
Assets under management: C$63.04 million
The Evolve Ether ETF offers investors an easier route to investing directly in Ether. The fund’s holdings of Ether are priced based on the CME CF Ether-Dollar Reference Rate, a once-a-day benchmark index price for Ether denominated in US dollars. As with the Evolve Bitcoin ETF, the Evolve Ether ETF has a management fee of 0.75 percent.
11. 3iQ CoinShares Staking Ether ETF (TSX:ETHQ)
Assets under management: C$62.3 million
Following the success of its Bitcoin ETF, 3iQ Digital Asset Management launched its CoinShares Ether ETF in April 2021. This fund has a similar objective, offering exposure to Ether and its daily US dollar price movements. It also has a management fee of 1 percent.
Figures for this fund were accurate as of July 31, 2024, according to the fund's website.
12. Evolve Cryptocurrencies ETF (TSX:ETC)
Assets under management: C$39.09 million
The Evolve Cryptocurrencies ETF launched in September 2021 as the first multi-cryptocurrency ETF, providing combined exposure to both Bitcoin and Ether.
This product from Evolve ETFs allows investors to diversify their crypto portfolios and provides indirect exposure to the two coins, weighing them by market capitalization and rebalancing its holdings on a monthly basis. Bitcoin makes up the majority of its portfolio.
While this ETF has no management fee, the underlying funds that hold both Bitcoin and Ether have management fees of 0.75 percent plus applicable taxes.
13. Fidelity Advantage Ether ETF (TSX:FETH)
Assets under management: C$21.4 million
Following the successful launch of its Bitcoin fund, Fidelity brought its Advantage Ether ETF to market in September 2022, making this the newest Ether ETF in Canada. Its holdings are stored in Fidelity's in-house cold storage.
The Fidelity Advantage Ether ETF has a management fee of 0.4 percent.
This is an updated version of an article first published by the Investing News Network in 2021.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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Tech 5: Aide Says Harris Supports Policies to Expand Crypto Sector, AMD to Buy ZT Systems
Investors proceeded cautiously through the week's opening days, but the tone shifted on Friday (August 23) afternoon in response to an optimistic announcement from US Federal Reserve Chair Jerome Powell
In a Jackson Hole speech, he signaled that the Fed is ready to begin cutting interest rates.
Crypto markets also saw a surge, breaking free from a weeks-long pricing gridlock. In company news, Waymo introduced a new version of its self-driving technology, marking another milestone in a series of wins in recent months.
Stay informed on the latest developments in the tech world with the Investing News Network's round-up.
1. Markets celebrate with rate cuts in sight
The week started shaky for the stock markets, with the S&P 500 S&P 500 (INDEXSP:.INX) and Nasdaq Composite (INDEXNASDAQ:.IXIC) opening below last week’s close on Monday (August 19) before notching their eighth consecutive day of wins, along with the S&P/TSX Composite Index (INDEXTSI:OSPTX).
The Russell 2000 Index (INDEXRUSSELL:RUT) saw gains of 1.1 percent on the day.
Cautious trading left the major indexes little changed on Tuesday (August 20) morning as investors awaited a fresh round of inflation data. Wednesday (August 21) saw the release of US non-farm payroll benchmark revisions and minutes from July's Fed meeting. The data from the Bureau of Labor Statistics showed that, while the labor market is expanding, job growth between March 2023 and March 2024 was lower than previously estimated.
Meanwhile, the Fed meeting minutes revealed that policymakers considered a quarter percentage point rate cut in July due to reduced inflation and increased unemployment, increasing confidence in a rate cut in September. The news sent indexes higher, with the Russell 2000 taking the lead, gaining over 1 percentage point to close at 2,170.32.
The upward trend continued on Thursday (August 22) morning, with all but the S&P/TSX Composite index opening above the previous day’s close. Economic data showed that the US manufacturing PMI fell to 48 in August from 49.6 in July, coming in softer than expected. Conversely, initial jobless claims rose slightly in the week ended on August 17 compared to the prior week, up by 4,000 to 232,000.
NVIDIA performance, August 19 to August 23, 2024.
Chart via Google Finance.
Stocks retreated midday Thursday, led by the tech sector. NVIDIA (NASDAQ:NVDA) saw its share price fall by 4.77 percent by the end of the day. Optimism returned on Friday morning as Powell addressed bankers and financial professionals at the Kansas City Fed’s annual economic conference in Jackson Hole, Wyoming.
During the highly anticipated speech, Powell endorsed an imminent rate cut, but refrained from specifying the exact number of basis points by which the rates might be reduced.
"The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook and the balance of risks," he said.
The news ignited a surge in all three major stock indexes as investors reacted positively. The Russell 2000 outperformed by far, climbing more than 3 percent midday. This continued a recent trend of increased investor interest in mid-cap stocks, which has been observed in response to optimistic Fed data over the past couple of months.
The week ended strong with all four major indexes up more than 1 percent on the week, including the Russell 2000, which was up by over 3 percent.
2. Bitcoin price breaks US$60,000
Bitcoin experienced a dip below US$58,000 in pre-market trading on Monday morning, spending most of the trading day at that level before recovering to move above US$61,000 in the hours between Monday and Tuesday.
Tuesday saw another sharp pullback, coinciding with a dip in US stock indexes. At the same time, K33 analysts reported that Tuesday’s seven day average annualized funding rate was the lowest one since March 2023, indicating increased short bets and potential for a squeeze. More price movement was observed on Wednesday, with Bitcoin trading in the US$59,000 range for most of the day before breaking above US$60,000 and then US$61,000 in the final hours of the trading day. The popular cryptocurrency held above US$60,000 for the remainder of the week.
Recent data shows a slight decrease in demand for Bitcoin, although long-term holders have continued accumulating tokens. Concurrently, the number of institutional investors holding Bitcoin ETFs witnessed a notable growth of 14 percent in Q2 compared to Q1, suggesting continued interest from larger market participants.
Analysts at Fairlead Strategies suggested on Wednesday that Bitcoin could be heading into a period of downturn in the near future based on a reading of the 14 month stochastic indicator, which compares a security’s closing price to its price range over a specific period. The indicator is used to assess the momentum and potential trend reversals in financial markets. While it was previously above the 80 level, indicating an overbought condition, it recently crossed below 80, indicating that Bitcoin may be entering an overbought downturn and could start falling in price.
However, the crypto market surged in response to positive economic developments on Friday. The likelihood of an impending September rate cut being further solidified following Powell’s address in Jackson Hole Wyoming on Friday morning sent the price of Bitcoin above US$64,000 by 5:20 p.m. EDT on Friday.
Ether, which had a volatile week, also saw a significant boost, trading above US$2,770 as of that time.
3. Democrats leave crypto off 2024 platform, but Harris could support the sector
Ahead of the Democratic National Convention, the party unveiled its 2024 Platform on Sunday (August 18). The 92 page document covers the party’s stance on various issues, including economic policy and social justice.
However, an important issue was noticeably absent: Vice President Kamala Harris's stance on cryptocurrency and web3 infrastructure. While voices in the crypto community have expressed optimism that Harris could be more open to supporting the industry compared to the current administration, Harris herself has been tight-lipped about where she stands on issues related to the regulation and taxation of decentralized finance.
However, the platform released on Sunday refers to “Biden’s second term." Given the tight deadline — the plan was finalized less than one week before President Joe Biden withdrew from the race — Harris may be more outspoken about her views on cryptocurrency and web3 infrastructure as the campaign progresses.
During a Bloomberg News roundtable at the Democratic National Convention, which kicked off in Chicago this past Monday, Brian Nelson, the campaign's senior adviser for policy, said that Harris would back measures that “ensure that emerging technologies and that sort of industry can continue to grow.”
Before Harris took over the Democratic campaign, Republican candidate Donald Trump’s embrace of Bitcoin and other digital assets seemed to give his party an advantage with crypto-focused voters.
The two candidates have been in competition on crypto-betting platform Polymarket, which enables users to use cryptocurrencies to place bets on real-world events. While the odds of a Democratic win surged by 12 percent on Polymarket just two weeks ago, propelling Harris into the lead, Trump overtook her this week.
Crypto media outlet Decrypt has suggested that the lack of a clear stance on cryptocurrency and Bitcoin in the Democratic Party's platform may have contributed to Trump overtaking Harris.
4. Waymo introduces 6th generation self-driving technology
Waymo, a subsidiary of Alphabet (NASDAQ:GOOGL), introduced the newest version of its self-driving technology, the 6th Generation Waymo Driver, on Monday. According to the company’s press release, the 6th generation system is more cost-effective than the current version while providing more capabilities and compute power.
The Waymo Driver will be able to see further, up to 500 meters away, and can better withstand harsh weather conditions. The new hardware also consists of an enhanced camera-radar surround view and advanced sensor technology that will reportedly improve its navigation capabilities.
Waymo CEO Tekedra Mawakana shared via LinkedIn this week that the company’s robotaxi service, Waymo One, surpassed 100,000 rides per week, double the 50,000 weekly rides the company reported in May. The company’s fleet is made up of Geely Zeekr electric vehicles (EVs) using the Waymo Driver technology.
Waymo began as a self-driving project in 2009. It has since expanded to offer commercial services in Texas, Arizona and California and partnered with Uber (NYSE:UBER) in May 2023. During Alphabet’s Q2 earnings call on July 23, Jim Friedland, director of investor relations, shared that Alphabet was committing to a US$5 billion investment in Waymo.
The new systems are currently still in testing with updates expected to be provided as development progresses.
5. AMD makes AI move with ZT Systems purchase
Semiconductor manufacturer Advanced Micro Devices (AMD) (NASDAQ:AMD) announced plans to acquire ZT Systems, a company that specializes in the development of servers and network equipment. The move, announced on Monday, is part of AMD’s efforts to expand its data center artificial intelligence (AI) capabilities.
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” AMD Chair and CEO Dr. Lisa Su said in a press release. The deal is valued at US$4.9 billion, and consists of a blend of cash and stock, including up to US$400 million based on post-closing milestones.
AMD shares were up 4.66 percent on Monday, and reached US$161.57 during trading on Tuesday, the company's highest valuation this week. AMD's share price was sitting US$154.97 on Friday afternoon, up 4.46 percent for the week.
Don't forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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