As new York Mayor Eric Adams gets his first crypto paycheck, he’s taking quite a haircut in the form of an over the weekend decrease in Bitcoin pricing.
Joseph Hall at Cointelegraph reports that the mayor is unshaken by the loss in value.
“Bitcoin is a New York state of mind thing for Eric Adams, the crypto advocate serving as the 110th mayor of New York City,” Hall writes. “He received his first Bitcoin payout on Friday during some epic downward price action and was unflappable when asked about losses during an interview.”
By getting his first three paychecks in Bitcoin, Adams is collecting fewer U.S. dollars than anyone might have expected prior to Friday. Analysts estimate Adams lost $5000 on the first installment due to the volatile change in coin price.
Hall also offers this direct quote from the mayor as rationale:
“It’s the same as when I invested in the stock market; we saw a drastic drop during 2018 and other times,” Adams reportedly said. “The purpose of Bitcoin is to send a message that New York City is open to technology. We want to see a large amount of new technology in the city of New York and to encourage our young people to engage in these new emerging markets.”
It has been quite a dip – Bitcoin has lost nearly 25% over the weekend, moving far below any support level at $40,000.
“Bitcoin, Ether and the broader crypto market faced another wave of selling during Monday’s European hours as U.S. stock index futures erased early gains, signaling an extension of last week’s risk declines,” writes Omkar Godbole at Coindesk. “Bitcoin fell to $33,600, the lowest level since July 24, even as technical indicators signaled oversold conditions.”
Will BTC recover soon? That may have to do with the Fed’s actual actions, for which analysts are still reading the tea leaves. Keep an eye on this.