Cryptocurrency prices rose from underground on Monday following a steep drop triggered by fears over the latest variant of Covid-19.
Bitcoin was up nearly 5% to $ 57,055 on the last check, while Ethereum was up 5.3% to $ 4,316.
Prices were beaten on Friday, along with the rest of the market, amid concerns about the omicron variant. But they rebounded as investors focused on upcoming comments from Federal Reserve Chairman Jerome Powell.
Micah Carnahan, crypto expert and writer with Searcher, said cryptocurrencies were not exempt from fear-induced selling. The new variant caused a brief panic over the Black Friday weekend, with nearly $ 200 billion in digital assets sold to the news.
“Bitcoin is, however, bringing the market back from the depths of despair, with a sharp rebound coming from major support levels,” Carnahan said.
“After falling nearly $ 53,000 over the weekend, bitcoin has since gained around 5% as the omicron panic subsides. Ethereum has followed suit.”
He noted that the biggest gains seen over the past week have come from the game’s metaverse, the sandbox and the gala both see price increases of over 90%.
“These price increases reflect the growing interest in immersive 3D virtual worlds,” he said. “Attention in the metaverse has been boosted by Facebook (FB) – Get the Class A report from Meta Platforms Inc. (which recently changed its name to Meta Platforms) when they announced their intention to spend over $ 10 billion this year to develop their own Metaverse division. ”
Meanwhile, Winston Ma, Managing Partner at CloudTree Ventures, said NFTs and the metaverse have gained traction in China, with a growing list of Chinese companies openly adopting them.
“NFT’s prices are skyrocketing,” said Ma, author of “Digital war – How China’s technological power is shaping the future of AI, blockchain and cyberspace. ”
“For example, a digital torch for the Asian Games, launched by an Alibaba subsidiary (BABA) – Get the report from Alibaba Group Holding Ltd. Ant’s blockchain platform, AntChain, in September was originally priced at 39 yuan ($ 6.10), but private newsgroups have increased its value to over 10,000 yuan, according to Chinese media.
Ma said the Chinese government has not explicitly banned NFTs or the Metaverse, leaving digital collectibles trading tied to China’s ongoing crackdown on crypto mining and trading. But the window appears to be closing, as Chinese state media The People’s Daily asked last week whether NFTs were hype and fraud.
David Lesperance, Managing Partner of Immigration and Tax Advisor Lesperance & Associates, said India was following in China’s footsteps and decided to ban all non-government cryptocurrencies to make way for a sovereign electronic rupee.
“Those Indians who hold cryptocurrencies would be wise to look at the experience of their Chinese counterparts and act swiftly and decisively to protect the future of their crypto holdings,” he said.
Lesperance said the U.S. government has established a roadmap for how it will require banks to deal with issues such as custody, capital standards, and cryptocurrency-backed lending.
“It’s interesting that in the crypto lending arena, borrowers are finding that the rates and ‘loan-to-value’ ratios offered by major exchanges are ‘retail prices’,” he said.
“Thrifty borrowers are finding that there are much better ‘big’ terms.”
No one can guess if this will survive after the US government finishes regulating, Lesperance added.
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