Did he make the right decision, or will he back out now? November last year saw the Mayor of New York City, Eric Adams, announce that he would take his first three paychecks in cryptocurrency; Bitcoin and Ethereum to be exact. This announcement came as a response to the Mayor of Miami’s tweet, Francis Suarez, saying “I’ll receive 100% of my next paycheck in Bitcoin.”
These two are working hard to make their cities a thriving industry for crypto and everything related. Eric Adams, in his tweet, made mention of his intentions to make New York City the forerunner in the Crypto industry and other innovative industries.
Bitcoin has not exactly been on its best behavior since the beginning of the year. It’s all-time high in November 2021, while creating a new milestone for Bitcoin, has also caused some imbalance responsible for Bitcoin’s struggle. The color everywhere in the cryptocurrency market lately has been red. Many associate this with the current decline in the stock market.
However, the recent dive in the price of Bitcoin might have caused a 10-12% pay cut in the Mayor’s paycheque. This new development doesn’t seem to move the Mayor, as he still stands with his decision and received his first pay cheque on Friday. His decision got a lot of positive feedback on Twitter, as many people see it as a good sign of political leaders joining the advancement of decentralization and the positive effects it can have in job creation, innovations, and a well-rounded economy.
Bitcoin’s Nose Dive
There has been a lot of sell pressure throughout last week in the cryptocurrency market as well as the stock market. Investors are selling off their assets to try salvaging what they can as Bitcoin continues on a downtrend; recording a 49% drop from its previous all-time high. Bitcoin dropped below its $35,000 mark, the lowest since mid-2021. What could be responsible for the further dive in price?
Last week saw a lot of very impactful news releases, from The Federal Reserve releasing a report from a closed-door meeting last year, to reports of increased inflation, to the Bank of Russia moving to ban cryptocurrencies, to a poor December jobs report, to the stock market falling, etc. All these took their toll on the biggest cryptocurrency by market cap.
Is There Still Hope For Bitcoin?
Amidst all these red linings in the financial markets, some Crypto proponents still believe this is a minor setback that might herald Bitcoin moving to $100,000. While this may be very unpleasant for many investors, this nose dive seems natural considering the history of the Bitcoin cryptocurrency.
Despite the pressure mounting to smother Bitcoin in certain regions, analysts believe Bitcoin and the cryptocurrency market has reached a maturity stage where it has become impossible to easily take it out. Whether this market crash means it’s over for Bitcoin, we can’t say. But from previous occurrences, it will be safe to say we haven’t seen the end of the disruptive innovation.