Fears of a new COVID variant caused turbulence and serious volatility in the cryptocurrency market over the past seven days.
The past seven were somewhat successful for Bitcoin, and the total market capitalization managed to increase by some $150 million. Some altcoins are really taking off, while others are seemingly in a stalemate situation.
But let’s start with Bitcoin. The market leader failed to produce any meaningful gains but is up slightly above 2% in the past seven days. This came after an excellent weekly close on Sunday. Unfortunately, bulls didn’t capitalize on the opportunity and failed to break the critical $59K resistance level on three separate occasions on Monday, Tuesday, and Wednesday.
A lot of this volatility had to do with broader market turmoil caused by the discovery of a new COVID variant called Omicron. Stocks are also looking shaky, and it’s likely that they will take some time before the risk-on trade can continue with full force, hence creating temporary headwinds for the crypto market as well.
Some altcoins were completely unfazed by all of the above. Solana is up 10.5% in seven days, while LUNA skyrocketed by almost 60%. However, others felt the weight of the market instability – DOT is down 9%, XRP – 7.3%, ADA – 3%, AVAX – 8.7%, and so forth.
It’s interesting to note that this was the first time when PlanB’s BTC floor model missed by a long shot. However, according to the analyst, his S2F model is still intact. We are heading into a historically bullish month for the cryptocurrency market, in general, and it’s exciting to see what December has in store.
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Market Cap: $2,739B | 24H Vol: 132B | BTC Dominance: 38.9%
BTC: $56,283 (+2.1%%) | ETH: $4,531 (+0.4%) | ADA: $1.1.63 (-3%)
This Week’s Crypto Headlines You Can’t Miss
PlanB’s Floor Model First Miss: Bitcoin Price Closed Way Below $98K In November. PlanB, the analyst who created the famed Bitcoin Stock-to-Flow (S2F) model, also created a “worst-case scenario” one known as the floor model. In November, the latter was off for the first time as the price closed way below its target.
Adidas Enters The Metaverse With BAYC, Punks Comic, and GMoney. Renowned shoemaker Adidas formed three more crypto-related partnerships, diving deeper into the Metaverse hole. Following its collab with Coinbase, Adidas has now joined various NFT projects such as GMoney, Bored Ape Yacht Club (BAYC), and Punks Comic.
Binance Smart Chain Activates Real-Time BNB Burning Mechanism. The Binance Smart Chain (BSC) activated the BEP-95, which integrates a real-time burning mechanism into its tokenomics structure. Going forward a fixed ratio of gas fees that are collected by BSC validators is going to be burned in every single block.
Ex-Chancellor: Crypto Could Give London an Advantage Over European Competitors. Philip Hammond, a former Chancellor for the Exchequer from 2016 to 2019 in the UK, argued that cryptocurrency adoption can give London a competitive advantage over other European competitors. He also added that failure to adopt might leave them behind.
Square Rebrands to Block, Expands Focus on Blockchain Industry. Jack Dorsey-led Square, the financial services company, changed its name to Block, hinting at further involvement in the broader cryptocurrency industry. This happened immediately after Dorsey stepped down from Twitter and is no longer serving as its CEO.
Meta Expands Avenues For Running Crypto Ads On Facebook. After rebranding the company to Meta, the platform has now expanded the range of cryptocurrency ads that are eligible. It now accepts 27 licenses compared to the previous 3, and they are publicly viewable on the policy page.