Cryptocurrency Summary: Black Friday Crypto Crash

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Bitcoin fell to a six-week low today below $ 54,000, in line with turmoil in global markets over the emergence of a new variant of Covid-19.

Here are the best stories that caught our attention

Black Friday crypto crash

Bitcoin fell to its lowest level in six weeks today – up 9% to $ 53,534 – in line with wider markets after a deadly new variant of Covid-19 emerged in South Africa. South. Investors have ditched many riskier assets in favor of safe havens such as the US dollar and bonds.

“Bitcoin has acted more like a risky asset recently, and today’s rush for security means the digital token has been squashed,” Bloomberg said.

Another reason given by speculators for holding bitcoin is rising inflation. But the new variant raises questions about the future of the central bank’s monetary policy, with the odds of tightening fading, and could derail the global recovery – and potentially even reverse inflation. As Neil Wilson, chief market analyst at Markets.com, puts it, “Bitcoin doesn’t provide much hedge.”

India plans to ban cryptocurrency

India is set to move forward with a contentious plan to ban cryptocurrencies in a long-awaited parliamentary bill. The ban is part of the official cryptocurrency and digital currency regulation bill and would cover all private cryptocurrencies with only minimal exceptions in place for blockchain, the technology behind crypto. currencies.

India needed to take a softer stance on cryptocurrencies and possibly even regulate them as assets. But the bill could cause a sharp drop in cryptocurrency activity in India.

Laith Khalaf, head of investment analysis at AJ Bell, said that “India’s plan to ban cryptocurrencies has not done the same damage to the price of bitcoin as the summer crackdown on cryptocurrency. China … strength in the real world.

Binance in talks with sovereign wealth funds for a stake in the company

Binance, the world’s largest cryptocurrency exchange by volume, has been in talks with many sovereign funds to potentially take a stake in the exchange, according to the Financial Times.

Changpeng Zhao, CEO of Binance, said the move, if carried out, would help “perception and relationships” with various governments. “But it can also tie us to specific countries. . . with which we want to be slightly careful, ”added the CEO of Binance.

Binance has not been immune to increasing scrutiny in recent months, under pressure from regulators in Canada, Singapore, the UK, among others.

Zhao said Binance is in preliminary talks to raise capital from numerous sovereign wealth funds. This is in addition to “raising capital for its US subsidiary before a public listing,” said the FT.

Zhao did not disclose which SWFs the exchange has already had discussions with.

Here’s what happened in the cryptocurrency market over the past seven days:

Bitcoin fell 4% to $ 54,160. Ether rose 2% to $ 4,035.20. Dogecoin fell 7% to $ 0.20. Cardano fell 14% to $ 1.53. Solana is down 0.5% to $ 203. What you need to watch out for Sweden calls for EU-wide ban on ‘proof-of-work’ cryptocurrency mining

Directors of the country’s Financial Supervisory Authority’s Environmental Protection Agency have called for a ban on the most energy-intensive form of cryptocurrency mining – the ‘proof of work’ employed by Bitcoin and many other tokens.

In an open letter to E, it is said that with China banning crypto-mining, miners will settle down to take advantage of Sweden’s renewable energy, which the country needs “for our climate transition. essential services “.

It’s fair to say that those calling for a ban aren’t fans of cryptocurrencies in general. “The social benefit of cryptoassets is questionable,” the letter reads, as “cryptoassets are commonly used for criminal purposes such as money laundering, terrorist financing, and ransomware payments.”

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