{"id":6832,"date":"2021-03-06T15:39:22","date_gmt":"2021-03-06T20:39:22","guid":{"rendered":"https:\/\/cointelegraph.com\/magazine\/?p=6832"},"modified":"2021-03-06T15:39:37","modified_gmt":"2021-03-06T20:39:37","slug":"bitcoin-nerves-tesla-dump-nft-insanity-02280306","status":"publish","type":"post","link":"https:\/\/cointelegraph.com\/magazine\/2021\/03\/06\/bitcoin-nerves-tesla-dump-nft-insanity-02280306","title":{"rendered":"Bitcoin nerves, Tesla told to dump crypto, NFT madness: Hodler\u2019s Digest, Feb. 28\u2013March 6"},"content":{"rendered":"
Coming every Saturday, <\/i><\/b>Hodler\u2019s Digest<\/i><\/b><\/a> will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 a week on Cointelegraph in one link.<\/i><\/b><\/p>\n After reaching lows of <\/span>$43,500 <\/b>last Sunday, Bitcoin staged a comeback, managing to hit <\/span>$52,000 <\/b>on Wednesday. <\/span>There was optimism that the correction was over and that BTC would now have the chance to return to all-time highs.<\/b><\/p>\n Alas, the best-laid plans of mice and men often go awry. <\/span>Fast forward to this weekend, and Bitcoin is once again struggling to break above $50,000 \u2014 a psychologically important milestone. <\/b>Now, the nerves are starting to set in.<\/span><\/p>\n A drop below recent lows of <\/span>$46,000 <\/b>could open the door to further downward movement, endangering a bull run that\u2019s been in place for almost a year\u2026 at least in the short term. Pseudonymous trader Rekt Capital believes BTC could bottom between <\/span>$38,000 <\/b>and <\/span>$45,000 <\/b>if this level fails to hold.<\/span><\/p>\n Traders are now beginning to speculate that Bitcoin may continue to <\/span>trade sideways<\/span><\/a> for now. <\/span>A gloomy macroeconomic picture dominated by rising bond yields and a pullback in tech stocks certainly isn\u2019t helping matters.<\/b><\/p>\n Then again, there\u2019s always a metric that shrugs off the gloom\u2026 suggesting everything is fine. <\/span>Glassnode\u2019s Reserve Risk indicator suggests that BTC\u2019s rally is still in the <\/b>early to middle stage<\/b><\/a> \u2014 even after this week\u2019s pullback. <\/b>Great. Nothing to worry about, then.<\/span><\/p>\n <\/p>\n <\/p>\n Tesla is now coming under pressure to sell off the <\/span>$1.5 billion <\/b>it holds in Bitcoin. <\/span>Since the electric vehicle maker announced its crypto buy-in, TSLA shares have fallen by a stomach-churning 30.8%.<\/b><\/p>\n Gary Black, the former CEO of Aegon Asset Management, tweeted that Tesla would generate \u201cpositive momentum\u201d if it bows out of crypto, adding: \u201cHighly unlikely, but shareholders would be very supportive.\u201d<\/span><\/p>\n Bitcoin\u2019s price correction has also been hurting MicroStrategy \u2014 the business intelligence firm that owns more than 91,000 BTC. <\/b>MSTR\u2019s share price has tumbled by <\/span>52.8% <\/b>in less than a month.<\/span><\/p>\n The company doesn\u2019t seem too worried, though. <\/span>MicroStrategy <\/b>bought<\/b><\/a> another 205 BTC this week in a $10-million spending spree that coincided with the latest dip.<\/b><\/p>\n While the software company began putting its existing assets into BTC in 2020, back when Bitcoin traded at about <\/span>$10,000<\/b>, its latest purchases have yet to break even.<\/span><\/p>\n <\/p>\n Buckle yourselves in\u2026 we\u2019ve got so much NFT news to get through. One of the more attention-grabbing headlines this week came when Kings of Leon announced it is releasing its eighth album in the form of a nonfungible token.<\/span><\/p>\n Three types of NFTs are on offer, with the rarest offering front-row seats to Kings of Leon concerts for life, a personal driver and the chance to hang out with the band before shows.<\/b><\/p>\n Frenzied activity in the NFT sector doesn\u2019t end here. The rarest Pepe of them all \u2014 \u201cHomer Pepe\u201d \u2014 <\/span>went under the hammer<\/span><\/a> for <\/span>205 ETH <\/b>this week\u2026 that\u2019s worth <\/span>$323,000 <\/b>at the time of writing. Meanwhile, an NFT made up of 100 individual pieces from 100 different artists <\/span>sold out<\/span><\/a> within minutes on Rarible.<\/span><\/p>\n Aavegotchis \u2014 NFTs inspired by the Tamagotchi devices that were oh so trendy in the late 1990s and early 2000s \u2014 were <\/b>snapped up<\/b><\/a> in under a minute. <\/b>And as sales on NBA Top Shot continue to go through the roof, the executive chairman of the sports merchandise company Fanatics, Michael Rubin, <\/span>said<\/span><\/a>: \u201cIt\u2019s almost a frenzy happening right now.\u201d<\/span><\/p>\n If all of this wasn\u2019t crazy enough, an original artwork by Banksy has been burned and turned into an NFT. <\/span>Ironically, the piece is called \u201cMorons\u201d and depicts buyers at an art auction bidding on a piece emblazoned with the words \u201cI can\u2019t believe you morons actually buy this shit.\u201d<\/b><\/p>\n <\/p>\n Still dusting itself off after a showdown with the New York Attorney General, Tether is really struggling to catch a break right now.<\/span><\/p>\n This week, hackers threatened to release sensitive company documents that supposedly belonged to Tether\u2026 unless they were paid a 500-BTC ransom \u2014 a staggering sum worth $23.8 million at the time.<\/b><\/p>\n Tether announced what was happening on Twitter and declared: <\/span>\u201cWe are not paying.\u201d<\/b><\/p>\n The deadline has now passed, but what remains unclear is whether the extortionists are attempting a simple cash grab, or whether it\u2019s all part of a greater effort to undermine Tether and the rest of the Bitcoin ecosystem.<\/span><\/p>\n \u201cEither way, those seeking to harm Tether are getting increasingly desperate,\u201d the company added.<\/b><\/p>\n <\/p>\n There\u2019s been another dramatic twist in the \u201cwill they, won\u2019t they\u201d saga of India\u2019s planned crypto ban.<\/span><\/p>\n On Saturday, Indian Finance Minister Nirmala Sitharaman said reports that the government is pursuing a blanket ban on cryptocurrencies are overstated. <\/span>She stressed that regulations won\u2019t be as \u201csevere\u201d as previously reported and that the authorities were determined to take a \u201cvery calibrated\u201d stance.<\/b><\/p>\n The comments will no doubt come as a relief for crypto businesses and investors in the world\u2019s second-most populous country following years of uncertainty.<\/span><\/p>\n At one point, India was considering introducing jail terms of up to 10 years for anyone caught dealing in cryptocurrencies \u2014 along with a hefty fine. <\/b>The country\u2019s central bank also introduced a ban that stopped banks from offering services to crypto businesses, causing several to collapse. Those restrictions were sensationally overturned by the Supreme Court last year.<\/span><\/p>\n Sitharaman\u2019s latest remarks are at odds with a Bloomberg report last month that claimed crypto assets would soon be completely banned in India.<\/b><\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n At the end of the week, Bitcoin is at <\/span>$48,445.86<\/b>, Ether at <\/span>$1,607.45 <\/b>and XRP at <\/span>$0.46<\/b>. The total market cap is at <\/span>$1,484,740,419,357<\/b>.<\/span><\/p>\n Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are <\/span>Chiliz<\/b>, <\/span>Enjin Coin <\/b>and <\/span>Flow<\/b>. The top three altcoin losers of the week are <\/span>Cardano<\/b>, <\/span>1inch <\/b>and <\/span>Stellar<\/b>.<\/span><\/p>\n For more info on crypto prices, make sure to read <\/span>Cointelegraph\u2019s market analysis<\/span><\/a>.\u00a0<\/span><\/p>\n <\/p>\n \u201cYou should look for relative strength when others are weak. Global macro sold off yesterday and BTC did not give a donkey.\u201d<\/span><\/p><\/blockquote>\n Kyle Davies<\/b><\/a>, Three Arrows Capital co-founder<\/b><\/p>\n <\/p>\n \u201cBitcoin is holding up against the macro spectacularly well.\u201d<\/span><\/p><\/blockquote>\n Lex Moskovski<\/b><\/a>, Moskovski Capital CEO\u00a0<\/b><\/p>\n <\/p>\n \u201cThe fact that Bitcoin continues to show strength even with GBTC acting like a resistance band holding it back is very encouraging and shows to me that the overall story, that of accelerating adoption, is still intact.\u201d<\/span><\/p><\/blockquote>\n Chad Steinglass<\/b><\/a>, CrossTower head of trading<\/b><\/p>\n <\/p>\n \u201cI think there\u2019s going to be tremendous value created, but also there\u2019s so many people getting into it, I don\u2019t think everyone\u2019s going to be successful.\u201d<\/span><\/p><\/blockquote>\n Michael Rubin<\/b><\/a>, Fanatics executive chairman<\/b><\/p>\n <\/p>\n \u201cIt\u2019s early stages, but in the future, I think this will be how people release their tracks: When they sell a 100,000 at a dollar each, then they just made $100,000.\u201d<\/span><\/p><\/blockquote>\n Josh Katz<\/b><\/a>, Yellowheart CEO<\/b><\/p>\n <\/p>\n \u201cI think Reed Hastings is a very innovative guy and has a lot of creative thinking, and I think he still controls the reins at Netflix, and so I think that might be the next big one to fall.\u201d<\/span><\/p><\/blockquote>\n Tim Draper<\/b><\/a>, serial investor<\/b><\/p>\n <\/p>\n \u201cWhat we are seeing built with crypto today is just proof of concept. As tech continues to get better\/cheaper\/faster there will be new applications and maybe even something that supersedes what we know as crypto today.\u201d<\/span><\/p><\/blockquote>\n Mark Cuban<\/b><\/a>, billionaire<\/b><\/p>\n <\/p>\n \u201cI see HOMERPEPE as the most important NFT in art history because its headline-making sale in 2018 influenced so many of the original crypto artists to believe we could put our art to work building both a market and belief around this new technology.\u201d<\/span><\/p><\/blockquote>\n Matt Kane<\/b><\/a>, artist<\/b><\/p>\n <\/p>\n \u201cIs Bitcoin a currency? Property? An asset? Maybe all of the above, I\u2019m going in with a 3% portfolio allocation.\u201d<\/span><\/p><\/blockquote>\n Kevin O\u2019Leary<\/b><\/a>, <\/b>Shark Tank<\/i><\/b> investor<\/b><\/p>\n <\/p>\n \u201cBitcoin has returned almost 200% (so nearly tripled your money), every single year for 10 years, *compounded*.\u201d<\/span><\/p><\/blockquote>\n CaseBitcoin<\/b><\/a><\/p>\n <\/p>\n \u201cWe\u2019re sending a clear message to the entire industry that you either play by the rules or we will shut you down.\u201d<\/span><\/p><\/blockquote>\n Letitia James<\/b><\/a>, New York Attorney General<\/b><\/p>\n <\/p>\n \u201cThose seeking to harm Tether are getting increasingly desperate.\u201d<\/span><\/p><\/blockquote>\n Tether<\/b><\/a><\/p>\n <\/p>\n \u201cThere are a host of risks and obstacles that stand in the way of Bitcoin progress. But weighing these potential hurdles against the opportunities leads to the conclusion that Bitcoin is at a tipping point.\u201d<\/span><\/p><\/blockquote>\n Citi<\/b><\/a><\/p>\n <\/p>\n Hodler\u2019s Digest has been home to some pretty sky-high Bitcoin price predictions over the years \u2014 <\/span>$500,000 <\/b>here, <\/span>$1 million <\/b>there. <\/span>Determined not to be outdone, Kraken\u2019s CEO has gone nuclear\u2026 predicting that BTC will be worth \u201cinfinity.\u201d<\/b><\/p>\n Jesse Powell believes that, one day, humanity will simply give up pricing Bitcoin in U.S. dollars \u2014 telling Bloomberg that a <\/span>$1-million <\/b>price tag in 10 years\u2019 time is reasonable.<\/span><\/p>\n Research from the company he runs is perhaps a little more realistic. <\/span>Kraken\u2019s latest analysis suggests Bitcoin could next top out somewhere <\/b>between $75,000 and $306,000<\/b><\/a>.<\/b><\/p>\n <\/p>\n <\/p>\n The former CEO of the crypto derivatives exchange BitMEX is in negotiations to surrender to U.S. authorities next month.<\/span><\/p>\n Arthur Hayes and fellow executives are accused of violating the Bank Secrecy Act by the U.S. Department of Justice and the Commodity Futures Trading Commission.<\/b><\/p>\n Transcripts from a virtual court hearing suggest he\u2019s going to surrender to the U.S. in Hawaii on April 6 \u2014 six months after he went on the run.<\/span><\/p>\n <\/p>\n Criminal charges are piling up for John McAfee. <\/span>The crypto advocate and internet security pioneer has now been accused of fraud and money laundering conspiracy crimes. <\/b>Allegations relate two schemes where cryptocurrencies were \u201cfraudulently promoted\u201d to investors.<\/span><\/p>\n Prior to today\u2019s news, McAfee already faced charges from U.S. governing bodies for tax evasion and initial coin offerings that he allegedly advertised for compensation without properly informing the public.\u00a0<\/span><\/p>\n After going on the run from the U.S. government in 2019, McAfee was arrested in Spain in October 2020.<\/b><\/p>\n <\/p>\n Alarm bells rang this week when Meerkat Finance, a decentralized finance protocol based on Binance Smart Chain, lost BNB worth <\/span>$31 million <\/b>\u2014 hours after it had launched.<\/span><\/p>\n The team initially claimed it had been the victim of an exploit but then deleted all its social media channels. <\/b>Due to the nature of the breach, some believe that a \u201crugpull\u201d scam had taken place.<\/span><\/p>\n But there might be some good news on the horizon for the victims of the exploit, which is one of the largest in DeFi\u2019s short history. <\/span>A Meerkat Finance developer posted in a newly created Telegram channel and revealed the exploit was a \u201ctrial\u201d testing users\u2019 greed and \u201csubjectivity\u201d \u2014 adding that the team was preparing <\/b>Top Stories This Week<\/b><\/h2>\n
<\/h4>\n
<\/h4>\n
Bitcoin traders worry as price remains pinned below $50,000<\/b><\/a><\/h4>\n
Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge<\/b><\/a><\/h4>\n
<\/h4>\n
Kings of Leon is releasing an album as an NFT<\/b><\/a><\/h4>\n
<\/h4>\n
Tether hit with 500 BTC ransom demand, but says it won\u2019t pay<\/b><\/a><\/h4>\n
No crypto ban in India: Finance minister predicts \u201cvery calibrated\u201d stance<\/b><\/a><\/h4>\n
Winners and Losers<\/b><\/h2>\n
Most Memorable Quotations<\/b><\/h2>\n
<\/h2>\n
Prediction of the Week<\/b><\/h2>\n
<\/h4>\n
<\/h4>\n
Bitcoin price is going to \u201cinfinity\u201d \u2014 Kraken CEO<\/b><\/a><\/h4>\n
FUD of the Week\u00a0<\/b><\/h2>\n
<\/h4>\n
BitMEX\u2019s Arthur Hayes and Ben Delo negotiate surrender to U.S. authorities<\/b><\/a><\/h4>\n
<\/h4>\n
McAfee faces crypto-related fraud charges from NY court<\/b><\/a><\/h4>\n
<\/h4>\n
Dev says $31 million Meerkat Finance exploit was a \u201ctest\u201d and funds will be returned<\/b><\/a><\/h4>\n