Crypto News on May 5: Bitcoin Rejects at $40K, Binance Invests $500M in Musk’s Twitter Takeover

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Crypto News: Bitcoin Surged after Fed Rates Hiking

Bitcoin initially rose 5% after the Federal Reserve announced a half a percentage point increase in the U.S. benchmark interest rate.

It came after Wall Street gave a blockbuster performance on Wednesday.

Investors may have been relieved after Fed Chairman Jerome Powell revealed that a future rate hike of 0.75% is “not something that the committee is actively considering.”

But the surge appeared to be short-lived — with Bitcoin failing to crack stubborn resistance at $40,000. The world’s biggest cryptocurrency has now slid to $37,000 at the time of writing.

Binance Invests $500M in Musk’s Twitter Takeover

Binance — the owner of CoinMarketCap — is backing Elon Musk’s Twitter takeover with a $500 million investment. An SEC filing reveals the Tesla CEO has secured $7 billion in financing from a group of high-net-worth individuals and investment firms. CZ confirmed the news on Twitter — where else — and wrote: “A small contribution to the cause.” It comes as Microsoft’s co-founder Bill Gates warns that Musk could make the social network worse than it is today — especially if dangerous conspiracy theories are allowed to spread unchecked. But conceding the entrepreneur has an exceptional track record with Tesla and SpaceX, Gates added: “We should have an open mind and never underestimate Elon.”

Gucci to Accept Bitcoin Payment

Gucci has announced that it will begin accepting crypto payments in a handful of its U.S. stores. The designer brand also plans to make digital assets a form of payment in the U.S. by the end of summer. Bitcoin, Ether, Litecoin, Shiba Inu and Dogecoin — as well as five stablecoins — are going to be accepted. According to Vogue Business, customers who want to transact using crypto will be emailed a QR code — enabling them to complete a transfer from their wallet. It’s reported that stores in New York, Los Angeles, Miami, Atlanta and Las Vegas will be among the first to take the plunge. Gucci says it’s “always looking to embrace new technologies when they can provide an enhanced experience for our customers.”