Bitcoin (BTC) volatility is on the rise again as it is now around $40,450, down from a week high of $43,400. After the currency successfully passed the US Federal Reserve interest rate hike, it showed a decline of 4.8 percent over the course of the week. Ethereum (ETH), which was near the $3,000 mark last week, is trading at $3,040, a weekly drop of more than 5 percent.
Bitcoin demand from major investors is declining, according to the data. Coinbase Pro, the professional trading body of the US exchange Coinbase, has reported an outward movement of large Bitcoin chips from its books. According to reports, the slides summed up to 30,000 BTC in a single day this week. March also recorded similar patterns.
The global story of Elon Musk’s bid to buy Twitter has implications for the cryptocurrency ecosystem as well. We discuss this and other stories from the week below.
Musk tweets and then buys
It appears that Elon Musk’s unofficial Dogecoin (DOGE) supporter Twitter poll on whether the messaging platform adheres to principles of freedom of expression assumed larger dimensions. Twitter’s top contributors could not have understood the subsequent turn of events. Musk became Twitter’s largest shareholder by purchasing a 9.2 percent stake in Twitter. He then declined the offer to join the board of directors after discussions with the company’s managers. As a final step, Musk offered to buy 100 percent of Twitter’s stock to allow for faster product innovation.
If you’re wondering what this has to do with DOGE, here’s it. Twitter has a subscription service called Twitter Blue that allows users to undo tweets and has an option to edit the tweet within 20 seconds of tweeting. Recently, Tesla’s CEO called DOGE as one of Blue’s payment options, causing an 8 percent increase in the original. In addition, the majority of cryptocurrency investors view Musk as a blessing because he has been outspoken about cracking down on rampant scams targeting amateur investors.
However, Twitter seems to have backed away from the idea so far.
Terraform Labs awards $880 million to Luna
Terraform Labs (TFL), the maker of the Terra blockchain, has provided a massive grant of 10 million LUNA, valued at $820 million, to the non-profit organization Luna Foundation Guard (LFG). The new batch of aid comes after LFG received a $1.1 billion grant last week. LFG is working to ensure the stability of the TFL’s Terra currency to maintain its peg to the US Dollar. The purpose of the new fund remains unknown even after the announcement on Twitter on Thursday.
Terra founder Do Kwon has done a good job of amassing $10 billion worth of Bitcoin (BTC) to support the reserves of Earth’s reservoirs.
Partnerships to help with adoption
Colombian delivery app Rappi has partnered with crypto-asset firm Bitpay and Bitso to launch a new cryptocurrency pilot program in Mexico. Rappi, which offers food deliveries and other on-demand goods across Latin America, will allow users to convert cryptocurrency into in-app credits to make purchases. Rappi, which operates in Latin American countries, launched its payment services in Mexico to challenge rival MercadoLibre, which has also recently acquired crypto companies.
Meanwhile, global payments company Mastercard has teamed up with crypto lender Nexo to launch the first of its kind crypto payment card as digital assets continue to proliferate. The card will reportedly be available in a few European countries initially, allowing users to spend without having to sell their bitcoins. The card is linked to a crypto-backed line of credit from Nexo and can be used at the 92 million merchants worldwide where Mastercard is accepted.
Adobe offers Metaverse images: buy, download, and create
Bored Ape Yacht Club and CryptoPunks Far Away From Each Other Craving Metaverse Pics? Or do you want to have a radioactive NFT album? You can now download images from Adobe Stock or Pexels. For those who are insatiable with downloads, they can unleash their creativity and make some of their own with Photo Sphere or Spalsh.
Despite all the reversals and inflation in the US at an all-time high, analysts and investors are hoping for a turnaround. Let’s take a look at two main points: April 11th it started with a recovery of the $43,000 mark but fell back below $40,000 the next day, its lowest level in weeks. Traders feel that this is the “falling to” point where a reversal is imminent.
The Bitcoin network shortage is bound to decline by 0.4 percent, and with the coin’s self-holding model in operation, the ‘hardness’ will adjust downward, analysts say. The small size of the adjustment also indicates that miners are still afloat despite the 10 percent drop in BTC/USD.
High-volume investors are still looking for exposure, undeterred by a US presidential order last week to investigate various aspects of the cryptocurrency ecosystem.
This Week’s Top Gainers – (As of 7pm, Apr 16, 2022)
1. Kyber Network Crystal v2 (KNC): 14 percent
2. Audius (AUDIO): 12 percent
3. ApeCoin (APE): 11 percent
This Week’s Biggest Loser – (As of 7pm, Apr 16, 2022)
1- Port (Ministry of Foreign Affairs) 26%
2 – Stabilization Protocol (ANC): 24 percent
3. Convex Financing (CVX): 17 percent
(Note: The analysis includes only the top 100 cryptocurrencies. Source: Coinmarketcap)
(Disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. These do not represent the views of the Economic Times)