Bitcoin had another dull and slow day as the price mostly stayed just below the $30k level. The largest cryptocurrency by market cap is currently stuck in a tight range between $29k and $30k and is looking to consolidate further before taking the next step. Altcoins, on the other hand, saw significant price declines due to growing signs of a bear market. More on that later.
In other news, eBay has announced its first public collection of NFTs that will be available for anyone to bid on. The e-commerce giant has been hinting at the launch of this NFT collection for a while now. It was eventually released amidst a cooling demand in the digital collectibles environment. eBay had originally enabled the sale of third-party NFTs about a year ago, but this is the first of their own collections.
Bitcoin and blockchain technology will be reviewed at the World Economic Forum 2022. A series of panel interviews with cryptocurrency personalities and pro-crypto politicians and influencers were witnessed. The newly elected mayor of Miami has stated that Bitcoin and other cryptocurrencies should be viewed from the point of view of innovation. More on that later.
As the cryptocurrency sector continues to gain attention in public debate and global forums, the bear market is taking its toll. CoinShares, a digital investment platform, saw a drop of around $154 million this week alone, bringing total assets under management (AUM) from institutional investors to a low of $38 billion. While CoinShares cites volatility as a major factor, the obvious reason is the recent price drop.
With the bear market in full swing, the adoption of bitcoin as legal tender in El Salvador could be further delayed. The country remains the only one in the world to designate cryptocurrency as legal tender. But plans for wider adoption have been delayed, in part due to falling prices and doubts about the country’s ability to pull through.
The Russian government’s new crypto law could reduce tax breaks for Bitcoin miners in the country. This development has taken a long time, but the country’s huge mining industry could be a target in the near future.
Japan’s Bitbank wants to offer institutional investors new ways to get involved in the cryptocurrency sector. The bank is creating a custody company for this purpose.
Coinbase finally has its exchange service extensive and added Binance BNB chain and Avalanche (AVAX token). The features are only available on the Coinbase wallet and not on the crypto exchange itself.
South Korean crypto exchanges are targeting Terraforms Labs for its role in the LUNA price crash. Local police have ordered exchanges to confiscate LUNA coins on these exchanges.
A report from the US Federal Reserve shows that the majority of investors in the crypto market are high-income individuals and generally tend to be HODLs. About 12% of all American adults owned or used crypto in 2020, according to the report, but that number is rising.
Bitcoin price stable just below $30k
Bitcoin is currently trading around $29.4k at the time of writing. The cryptocurrency appears to remain in this tight trading range for now.
The last 24 hours started with a Bitcoin price of around $30,100. It dipped below $30k before midnight and hit around $29.3k. It continued to trade sideways around this level for most of the day. At 3:30 p.m., the price took a sharp drop to $28,600, but that, too, reversed, and at press time, the cryptocurrency was back above $29,000.
Bitcoin has been trading between $29k and $30k for a while now. It looks like this sideways trading action is likely to continue for some time before the next decisive move can come. Some jarring moves below or even above cannot be ruled out, but market forces prefer a move in between, so it is likely to stabilize there again.
The total market capitalization of Bitcoin was approximately $560 billion and its share of the crypto market was 45%.
Losing Altcoin Books
Other cryptocurrencies posted some losses as the altcoin market reeled in light of the impending bear cycle. The biggest losers were Ethereum (ETH, -4.5%), Binance Coin (BNB, -3.9%), Ripple (XRP, -3.3%), Cardano (ADA, -6.5%), Solana ( SOL, -6.6%), Dogecoin (DOGE, -4%), Polkadot (DOT, -4.5%), Avalanche (AVAX, -12%), Shiba Inu (SHIB, -5.4%) , Polygon (MATIC, -8.2%) and Litecoin (LTC, -3.7%).
In other news….
Miami Mayor: Bitcoin Must Be Seen Through the Lens of Innovation
Bitcoin and blockchain technology were once again under discussion at WEF 2022. Miami Mayor Francis Suarez, who has agreed to withdraw his salary in BTC, stated that volatility plays a key role in the market, but concerns only increase when the bear market.
“We live in a world where investors only look at things from a profitability perspective, but Bitcoin needs to be seen from an innovative and technological perspective.”
Other speakers have also touched on the subject. The consensus for many was the same; Bitcoin is here to stay, despite the market crash.