Ryze Recap 6/2: Bitcoin Breaks $10,000 Amidst Civil Unrest, Russia Proposes New Bitcoin Regulation
The biggest Bitcoin news in 2 minutes or less. Presented by Ryze đ
Itâs Tuesday, June 2. Bitcoin shot up yesterday, hereâs what you need to know:
1. Bitcoin Breaks $10,000 Amidst Civil Unrest
At the time of writing, Bitcoinâs price is up 6% in the last 24 hours to $10,061/BTC. Bitcoin has been trading in the $8.6K-$9.9K range for the past month but spiked as high as $10,429 on Monday 6/1. During the move, short positions worth over $123M were liquidated in 1 hour.
Why it matters:
This price increase may have been led by institutional investors, who as we reported yesterday, have been showing an increased interest in Bitcoin. Our team spotted two hefty buy orders for over 500 Bitcoin on the UK-based exchange Bitstamp, shown below.
The spike comes in conjunction with protesting and rioting in cities across the United States and rising racial tensions. Overlayed with the global pandemic, this civil unrest adds another factor contributing to economic uncertainty. We believe investors are accumulating Bitcoin due to its nature as an uncorrelated asset.
2. Russia Proposes New Bitcoin Legislation
The Russian legislature has publically released a long-awaited draft of âOn Digital Financial Assets,â a bill providing guidance on the regulation of Bitcoin and other crypto-assets. The proposed bill includes a ban on mining within the country and bans Russian companies from enabling the purchase or sale of crypto-assets.
Why it matters:
Nearly 7% of mining hashrate (a measure of the computing power used to secure the Bitcoin blockchain) originates in Russia. Low electricity costs and temperatures in parts of Russia have cultivated the third-largest mining industry in the world.
The spin:
A notable omission from the bill is a ban on crypto-asset ownership by Russian citizens. Russians can still buy and sell Bitcoin on foreign platforms, indicating that Russia isnât inherently anti-Bitcoin. The Russian government just doesnât want to regulate exchanges and investment companies engaging in Bitcoin at this time.
Other countries such as India and China have temporarily imposed anti-Bitcoin legislation, but it often doesnât last. Both countries have previously imposed a ban on crypto-assets, but have since developed a more accommodating regulatory regime.
Thatâs all for today. We hope you have a terrific Tuesday and weâll catch you tomorrow morning for another Ryze Recap.