What happens: A majority of legislators have approved a proposal by Salvadoran President Nayib Bukele that allows Bitcoin to be used as legal tender in the country alongside the US dollar. The law states that “all economic actors will accept Bitcoin as a means of payment when offered by the buyer of a good or service.”

It’s a bold move that will likely be cheered by Bitcoin fans. But it might not help stabilize prices as some strategists warned that the digital coin could fall towards $ 20,000, where it was trading in December 2020.

Remember: after the notoriously volatile Bitcoin hit nearly $ 65,000 per coin in April, it crashed and last traded above $ 34,000. Analysts fear breaking the psychologically important $ 30,000 mark could fuel the sell-off.

It trades at just $ 31,025 this week after U.S. investigators recovered millions in crypto paid in ransom to hackers who shut down the Colonial Pipeline last month.

Jeffrey Halley, a senior market analyst at Oanda, has warned customers that Bitcoin could hit $ 22,000 in the coming days if sales continue, while Rich Ross, a technical analyst at Evercore ISI, believes that $ 20,000 is on the When the digital currency exceeds $ 29,000.

Wild swings in the price of Bitcoin are giving some institutional investors – an increasingly important force in the market – cold feet.

UK wealth manager Ruffer has given up its Bitcoin position over fears over the recent speculative frenzy. After taking a position of roughly $ 600 million in November when Bitcoin was trading near $ 15,000, the company began selling its stake in 2021 and made a profit of $ 1.1 billion. Dollar. Ruffer completed his exit in early April when Bitcoin was trading at $ 55,000.

“It just looked like it was a time when it would be nicer to watch from the sidelines than from the trenches,” said Duncan MacInnes, an investment director at Ruffer who helped manage his bitcoin stake. opposite the FT, which first reported the news.

That doesn’t mean everyone has gone bearish. Analytics firm MicroStrategy announced this week that it is selling $ 500 million in junk bonds to buy additional bitcoins. And Michael Sonnenshein, the CEO of Grayscale Investments, told me in a recent interview that his clients weren’t put off by the drop in crypto prices.

“When investors find periods when prices collapse or retreat, they will opportunistically use those setbacks … to build positions,” said Sonnenshein.

He expects pension funds, insurance companies and other professional investors to continue exploring Bitcoin as an asset class.

“I think institutional acceptance continues to grow exponentially,” said Sonnenshein.

A new class of meme stocks is emerging

You know your way around GameStop (GME) and AMC (AMC). But after a hectic week of trading for these stocks, attention is fading.

The latest: Chatter on Reddit’s popular WallStreetBets forum is driving Wendy’s and Clover Health stocks soar.

Wendys (WHOM) The stock rose 26% on Tuesday and rose another 5% in pre-trading on Wednesday. Reddit users have been talking about the company’s disrespectful social media feed and its “chicken tenties”. WallStreetBets users have long focused on “tendies,” a reference to profits or gains made on an investment.

Clover Health was up 86% on Tuesday and is up another 22% in pre-trading. The healthcare company went public in January by merging with a special purpose acquisition company (SPAC) founded by popular venture capitalist Chamath Palihapitiya.

The startup is now at the top of Vanda Research’s rankings, which tracks retail investments. Wendy’s holds 4th place.

Warning: Lordstown Motors, an electric truck startup that caused a lot of hype after merging with a SPAC in 2020, warned Tuesday that it is almost running out of cash and may be pushed out of business for the next year.

Lordstown Motors stocks are down 63% from a recent high in February – a reminder that business fundamentals can still ultimately catch up with online fan favorites.

Corporate America fails to deliver on its promise of diversity

The level of diversity on America’s largest corporate boards has never been higher. But it is still a long way from being on par with US society, reports my CNN business colleague Jeanne Sahadi.

According to a new study published this week by the Alliance for Board Diversity in partnership with Deloitte, white women and minorities made up 38% of the Fortune 500 board seats in 2020, up from 34% in 2018.

Since 2010, the number of companies with more than 40% diversity (including women) has almost quadrupled.

Still, the average growth rate of minority representation on Fortune 500 boards has remained unchanged since 2004 – at less than 0.5% per year.

“The advances in overall diversity are largely due to the increase in white women on boards,” the study found.

Note this area: The board member “recycling rate” – that is, one person serving on multiple board members – has decreased for all groups. But in 2020, more than a third of the various board seats were still occupied by people who served on multiple Fortune 500 boards.


Campbell soup (CPB) and Vera Bradley (ASK) Report results before US markets open. GameStop (GME) follows after closing.

Coming tomorrow: The final meeting of the European Central Bank takes place while policy makers watch closely to see if the economic recovery triggers unhealthy inflation.