Bitcoin price continues to rise at the beginning of this week. After falling by about 20% over the weekend, the price of the world’s most popular cryptocurrency is gradually recovering. As a result of trading on Monday, the price of bitcoin increased by 2.2%, and for one unit of cryptocurrency, you can get about $ 50,800. Subsequently, the rate continued to grow, and at the time of this writing, bitcoin was trading at $ 51,190 per unit.
“The general confidence in crypto is still high and market sentiment is coming back as we saw a general risk-on mood on Monday. Omicron’s effect looks a lot milder than the market has digested,” said Edison Pun, senior market analyst at Saxo Markets in Hong Kong.
This weekend, bitcoin lost more than 20% in price, and the cryptocurrency rate dropped to about $ 42 thousand. Following bitcoin, the rate of other popular cryptocurrencies, such as Ethereum, Solana, etc., dropped. This decline is due to the unstable period in the stock markets, which was caused by restrictive measures due to a new strain of coronavirus infection.
This collapse was the largest since the fall in the bitcoin rate by 31%, which occurred on May 19, 2021. According to cryptocurrency analytical platform Coinglass, the market capitalization of bitcoin over the weekend fell to $ 932 billion. In November, the coin rate climbed to a record value of $ 67 802 per unit.
Bitcoin City in El Salvador: Eco-friendly city with only one tax
President of El Salvador Nayib Armando Bukele Ortez, speaking at a regular event aimed at popularizing Bitcoin in the country; announced recently a large-scale infrastructure project – the so-called Bitcoin City. It will be a city that will be located in the eastern department of the country of La Union. It will be powered by a geothermal plant located on a volcano; and will not be subject to any taxes other than value-added tax.
According to Bukele, Bitcoin City will become a full-fledged metropolis; with residential and commercial areas, restaurants, an airport, as well as a port and rail links. There will be a square in the center of the city that will house a huge bitcoin symbol. Residents of Bitcoin City will pay one and only tax – VAT; there will be no other taxes (on income, property, capital gains or wages).
The Bitcoin City project value is at $ 1 billion. This amount will be used to issue tokenized bonds with a maturity of 10 years and a yield of 6.5% per year. Interestingly, of the total amount, only half will be spent directly on the construction of the city; the remaining $ 500 million will be spent on the purchase of bitcoins in the Treasury of El Salvador.