- Many people credit Odell Beckham Jr. for propelling Bitcoin as salary argument further ahead. As part of an agreement with payment service Cash App, the L.A. Rams wide receiver declared in November that he might collect his income in Bitcoin.
- However, in light of Bitcoin’s recent poor performance, financial analysis organization Hedgeye believes Beckham Jr. may have made a mistake.
- At the time of writing, Bitcoin is trading at $36,321.82 after facing an uptrend of 7.72% in the past 24 hours. Bitcoin’s current dominance stands at 41.94%. Also, the trading volume of Bitcoin has increased by about 40% in the past 24 hours.
On Monday, Bitcoin continued to fall as investors were alarmed by the Federal Reserve’s new aggressive attitude on monetary policy. The Federal Reserve of the United States recently signaled its intention to take action against rising prices by raising interest rates and shrinking its balance sheet. Several economists believe a significant rate hike could collapse the markets, whereas others believe the Fed has no other option.
In the week, Fed executives would meet, with skyrocketing consumer prices anticipated to be a major topic of conversation. According to the Financial Times, the Fed will affirm a rate hike in March. Overall cryptocurrency withdrawals have totaled $694.3 billion ever since the beginning of the year. The Curve DAO is at the top of the list with a -54 percent drop during the last week, followed by NEAR & Wonderland. Bitcoin is doing better, having lost -23 percent in the last seven days. And, as with the cryptocurrency God market, everyone’s watching to see what Bitcoin does next.
Investors At Loss!
The Bitcoin Spent Output Profit Ratio, which evaluates profitability/losses, had been negative for much of this month, according to Noelle Acheson, Head of Market Insights at Genesis. Acheson came to the conclusion that hit-and-run traders are quitting at a loss in order to protect their wealth.
For practically all of January, Bitcoin’s Spent Output Profit Ratio (SOPR) – that contrasts sale price to purchase price – has indeed been negative, showing that traders are trading at a loss on average. This indicates a sense of capitulation and suggests that individuals lacking long-term conviction are exiting the market. Long-term holders, however, stay resilient, according to Acheson, as the amount of $BTC not traded in a year has risen to 59 percent of supply.
Reducing Salary Due To Volatility
The ramifications of the previous market movement illustrate the dangers of accepting a Bitcoin income. Beckham Jr.’s $750,000 salary was disclosed when $BTC was $64,293, according to Hedgeye. However, as a result of the slump, $BTC is currently worth $35,400. This equates to a yearly salary of $412,953.
If that isn’t bad enough, Odell Jr.’s paycheck would be taxable at $750,000, according to Hedgeye. Odell Jr. has only made $35,703 from his visits through November. Hedgeye used the occasion to attack being paid in Bitcoin, notably mentioning Miami Mayor Carlos Gimenez’s remarks about paying government personnel in $BTC.