Bitcoin Is Back Over $41,000 as Cryptos Regain Strength
Feb 05, 2022
Bitcoin has risen more than 3% in the previous 24 hours, reaching just under $41,700, as the crypto market appears to be regaining steam. At least one trader appears to have benefitted from the gains: Senator Ted Cruz of Texas (R-Texas).
On Jan. 24, Bitcoin had dropped to roughly $33,300, down from $43,000 only four days before. It now looks to have cleared a critical barrier level around $40,000, and it has pushed the entire crypto market higher, with Ether breaking beyond $3,000 for the first time in almost two weeks.
According to CoinDesk, Bitcoin was recently trading at $41,682, and Ether was trading at $3,016, up 2.5 percent.
Cruz seems to have picked the right moment to get Bitcoin. On Jan. 25, the Texas Republican purchased between $15,001 and $50,000 worth of Bitcoin on the River Financial cryptocurrency market, according to a financial statement issued on Friday.
According to CoinMarketCap, Bitcoin began at $36,655 that day and concluded at $36,954. Cruz might be up 13.5 percent for a gain of approximately $2,000 if he invested only $15,000 that day. With a $50,000 investment, he might make a $6,750 profit, ignoring trading charges.
Cruz's press office did not reply to a request for comment right away.
Companies are coming to Texas for its low-cost energy and renewables like wind and solar, and the state has become a significant hub for Bitcoin mining. Miners have temporarily halted operations in preparation for a winter storm, with Riot Blockchain (RIOT), the state's largest miner, shutting down last Tuesday.
"Continue to minimize energy use until it is acceptable to restore to 100 percent of power," Riot Blockchain wrote in an emailed response to Barron's on Saturday.
Cruz, a strong supporter of cryptocurrency, has raged against efforts in Congress to tax and regulate the business. He slammed Democrats exploring new limits for the business during a Senate session last November.
Cruz remarked, "I doubt there are five members of the United States Senate who know what the hell a Bitcoin is." Rather than "using a machete," he continued, Congress should legislate after a more thorough study of cryptography.
Last year, Cruz presented legislation to rescind additional crypto tax-reporting rules included in the infrastructure bill enacted by Congress, which he also opposed. He introduced a bill in the Senate last November that would force eateries, gift shops, and vending machines on Capitol Hill to accept cryptocurrency payments. A resolution, on the other hand, lacks the weight of legislation and is viewed by politicians as more of a sentimental expression.
Cruz isn't the only member of Congress who has invested in Bitcoin or other cryptocurrencies. According to reports, Sen. Cynthia Lummis (R-Wyoming) purchased between $50,001 and $100,000 worth of Bitcoin on Aug. 16, 2021. In her 2020 calendar-year report, she also listed Bitcoin assets ranging from $100,001 to $250,000.
Last June, Senator Patrick Toomey (R-Pennsylvania) made a $15,000 investment in each of the Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE).
Rep. Barry Moore (R-Alabama) is another crypto-holder in Congress, having purchased various alt-coins in 2021, including Cardano, Dogecoin, and Ether, according to disclosures. Last June, Rep. Michael Waltz (R-Florida) purchased up to $100,000 in Bitcoin.