Hello everyone on the Lumi Wallet blog page. In our weekly digest, we tell you about the main news that was at the peak of feeds on social networks, Google, or that your friends might have told you about in the crypto world. This week, everyone was especially worried about two things: Black Friday and their shopping list, and Bitcoin’s drop to a 2-month low.
Everyone has already joked on Twitter that Bitcoin fell for Black Friday so that everyone could afford to buy their first BTC. But if you put aside all the jokes (and they are good, my team and I have laughed loudly at the new memes), then what is the real reason for the fall of Bitcoin?
The main reason for today’s market decline was the news about a new Covid variant in South Africa. Immediately after South Africa’s announcement of a new, rapidly spreading variant of coronavirus, global stock markets and U.S. stock index futures fell. Crypto has traditionally followed the entire market. That’s all.
Despite the correction of the crypto market, during the week investors invested $153.6 million in crypto funds. Bitcoin received most of the new investments, investments in funds based on it amounted to $114.4 million. Ethereum recorded inflows of $12.6 million, which was the fourth positive week in a row for the crypto — during this time, the total amount of investments amounted to $80 million.
Bitcoin price analysis
At the beginning of the week, Bitcoin started at $57.85k. At the time of writing, BTC is holding at $54k with a 24-hour trading volume of $42,664,961,395.29. Bitcoin has updated the local minimum, falling below $54k. The dominance of BTC in the market is 41.84%.
Despite a protracted correction, one of the leading Bitcoin whales over the past week bought 5335 BTC ($300 million) – now there are 113,864 BTC worth $6.4 billion at the owner’s address. Also, if you follow the mentions of Bitcoin, you will notice that there are much more positive mentions, and the expectation of growth is at a high level.
There is also news about the bitcoin price. The popular Stock-to-Flow (S2F) model may prove untenable — in the days remaining until the end of November, the price will most likely not have time to reach the projected $98,000. According to Huobi analysts, its author PlanB did not take into account the normalization of the Fed’s monetary policy.
PlanB commented, “Floor model $98K Nov close will probably be a first miss (after nailing Aug, Sep, Oct). S2F model not affected and indeed on track towards $100K.”
Ethereum price analysis
At the beginning of the week, Ethereum started at $4.2k. At the time of writing, ETH is holding at $4k with a 24-hour trading volume of $25,985,080,011.59. Ethereum has updated the local minimum, falling below $4k. The dominance of ETH in the market is 19.65%.
The Ethereum network has burned 1 000 000 ETH
Since the activation of the London update with the EIP-1559 burning mechanism, 1,000,000 ETH worth $4.3 billion have been burned on the Ethereum network.
The NFT marketplace OpenSea (111,000 ETH) destroyed the most, transfers on the Ethereum network burned 98,000 ETH, and the Uniswap V2 exchange burned more than 93,000 ETH.
Earlier, analysts at CryptoQuant said that after the London update, the ETH supply is no longer increasing – like Bitcoin, Ethereum is now a scarce asset with a limited supply, and therefore it is important to read the following news. Data from the Ultrasound Money service indicate that in the first half of 2022, the supply of Ethereum cryptocurrency will peak at 119.7 million ETH, after which the coin will become deflationary.
And that is why JPMorgan analysts believe that Ethereum is a more attractive object for investment compared to the first cryptocurrency due to its lower sensitivity to the influence of macroeconomic factors.
TOP CRYPTO NEWS
- El Salvador will build a tax-free “Bitcoin City” – a city with residential and commercial real estate, restaurants, an airport and rail links, which will have a rounded shape similar to a coin, and a complex with a giant BTC symbol will be built in the center. As part of the initiative, El Salvador will issue “Bitcoin bonds” for $1 billion, of which $500 million will be spent on preparing infrastructure for mining, and another $500 million is planned to be invested directly in the first cryptocurrency. The only tax will be VAT, with which the authorities plan to redeem bonds.
- The author of the world bestseller Rich Dad Poor Dad, Robert Kiyosaki, said he is ramping up purchases of BTC and ETH. He believes that cryptocurrencies will only attract more attention and such a financial opportunity should not be missed. The author has been writing positive tweets about cryptocurrencies for several months now, expressing his position on investing and the market in general.
- According to a new Grayscale report titled “Metaverse, the virtual cloud economy of Web 3.0,” the number of active users of the Metaverse has increased 10-fold from early 2020 to June 2021. Compared to other segments of Web 3.0 and Web 2.0, virtual worlds are still in their early stages, but if current growth rates remain on their current trajectory, this segment could become mainstream in the coming years. Metaverse integrated with crypto projects, the DeFi sector, NFT and DAO have “created a new online experience” that has quickly attracted a huge number of new users. Researchers claim that the Metaverse market will reach over $1 trillion in the next few years. By the way, the Pokemon Go developer raised $300 million to create the metaverse.
- Dogecoin turned out to be the most popular cryptocurrency by search queries in 23 US states, according to a study by The Advisor Coach. Bitcoin and Ethereum are in second (10 states) and third (eight) place. Analysts attributed DOGE’s leadership to Elon Musk’s attention to the asset.
- The volume of the market for NFT by 2030 may reach $300 billion, of which $56 billion will relate to the luxury goods industry. A study by analysts at investment bank Morgan Stanley contains such estimates . Plus The Collins English Dictionary word of the year is…NFT!!!
- Ripple is making “significant progress” in the proceedings with the U.S. Securities and Exchange Commission (SEC), CEO Brad Garlinghouse said in an interview with CNBC. In his opinion, the lawsuit may end in 2022.
- The Commonwealth Bank of Australia (CBA), Australia’s largest bank, is more concerned with the risk of being left out of cryptocurrencies than with those associated with the adoption of this asset class. CBA CEO Matt Comin announced this on Bloomberg TV.
- The owners of the rights to the books of the writer John Ronald Ruel Tolkien have won the proceedings against the creator of the JRR Token. A coin with the slogan “One Token to Rule Them All” was launched in August. The copyright holders of Tolkien Estate have filed a complaint with the World Intellectual Property Organization (WIPO). They stated that the name of the site and the token was misleading to users and also infringed on copyright. During the proceedings, the site was renamed thetokenofpower.com, but it still contained numerous references to Tolkien’s works. WIPO took the side of the copyright holders. The creator of JRR Token was ordered to remove all infringing content and pay legal fees.
- What are Twitch and Twitter sad and worried about? A crypto trader hamster named Mr. Goxx has died. We have been observing the smartest hamster on the market for several months, and now we can only offer our condolences to its owners.
This is all the news, for now. We will continue to keep you informed of all the main events of the crypto market. This article is for informational purposes only and does not provide any financial advice. Stay tuned to our wallet, enjoy the usable interface and transaction security, and check back for updates and news on Twitter, Telegram, Facebook, TikTok and LinkedIn. Let’s learn the cryptocurrency market together step by step!