rebounded more than 3% in the past 24 hours, hitting just under $41,700, as the crypto market appeared to be gaining momentum. The gains appear to have benefited at least one trader: Sen. Ted Cruz (R-Texas).
Bitcoin had fallen to around $33,300 on January 24 from $43,000 four days earlier. It now appears to have broken through a key resistance level around $40,000, and it has pulled the broader crypto market higher with
crossing $3,000 for the first time in about two weeks.
Bitcoin was recently at $41,682 and Ether was up 2.5% at $3,016, according to CoinDesk.
Cruz seems to have timed Bitcoin’s decline well. According to a financial disclosure published on Friday, the Texas Republican bought between $15,001 and $50,000 worth of Bitcoin on cryptocurrency exchange River Financial on January 25.
Bitcoin opened at $36,655 that day, according to CoinMarketCap, and closed at $36,954. If Cruz only invested $15,000 that day, he could now be ahead 13.5% for a gain of around $2,000, on the lower end of the range. At the high end, with an investment of $50,000, it could be ahead by $6,750, excluding trading fees.
Cruz’s press office did not immediately respond to a request for comment.
Texas, of course, has become a major hub for Bitcoin mining with companies flocking to the state for its low-cost energy and renewables like wind and solar. Miners recently suspended operations to help relieve the load on the network ahead of a winter storm, with
(ticker: RIOT), the state’s largest miner, passed away last Tuesday.
Riot Blockchain said in a statement emailed to Barrons Saturday that it “continues to reduce power consumption until it is appropriate to return to 100% power.”
A big supporter of crypto, Cruz has spoken out against congressional moves to tax and regulate the industry. During a Senate hearing last November, he had harsh words for Democrats considering new rules for the industry.
“I doubt there are five members of the US Senate who could tell you what bitcoin is,” Cruz said. Congress should legislate after studying crypto more thoroughly, rather than “using a machete,” he added.
Cruz introduced legislation last year that would repeal new crypto tax reporting provisions in the infrastructure package passed by Congress, which he also opposed. Last November, he filed a resolution in the Senate that would require Capitol Hill restaurants, gift shops, and ATMs to accept crypto payments. However, a resolution does not have the force of law and is seen more as an expression of sentiment by legislators.
Cruz is not the only crypto advocate in Congress who has invested in Bitcoin or other tokens. Senator Cynthia Lummis (R-Wyoming) purchased between $50,001 and $100,000 worth of Bitcoin on August 16, 2021, according to disclosures. It also reported Bitcoin holdings between $100,001 and $250,000 in its 2020 calendar year report.
Senator Patrick Toomey (R-Pennsylvania) invested up to $15,000 each in
Grayscale Bitcoin Trust
Ethereum trust in grayscale
(ETHE) last June.
Other crypto holders in Congress include Rep. Barry Moore (R-Alabama), who bought several alt-coins in 2021, including
Write to Daren Fonda at [email protected]