As tensions near the Russia-Ukraine border rise, most top cryptocurrencies’ prices scarcely moved last week, with worried traders around the world placing fewer wagers.
Threat of War Looms
Last week saw Bitcoin and cryptocurrency prices crash as low as $40,000 as tensions between Russia and Ukraine reach breaking point.
The crash comes alongside a stock market plunge following comments made by the U.S. president Joe Biden that Russia could invade Ukraine in a matter of days.
“There’s a storm blowing in and markets have been battening down the hatches,” Danni Hewson, AJ Bell financial analyst, said in emailed comments, adding “volatility is unlikely to vanish anytime soon.”
The bitcoin and cryptocurrency markets had been showing signs of recovery until the recent sell-off, after plunging last month. Last week, the bitcoin price surpassed $45,000 per bitcoin, with Ethereum and other top 10 coins like as BNB, Solana, Cardano, and XRP exhibiting similar gains.
“Despite briefly visiting the greed territory for the first time in four months last Wednesday, market sentiment has since slipped back into the fear territory as geopolitical uncertainty affects risk sentiment in the broader financial markets,” Sam Kopelman, U.K. manager at crypto exchange Luno, said in emailed comments.
JP Morgan enters Metaverse
JP Morgan took a significant step into to Metaverse last Tuesday, launching a virtual lounge in the popular blockchain-based world Decentraland.
The “Onyx lounge” was unveiled alongside a report from the bank outlining growth opportunities on the metaverse for businesses.
“When you think about the economics of the metaverse — or metanomics — there are opportunities in almost every market area.” the bank wrote. “We are not here to suggest the metaverse, as we know it today, will take over all human interactions, but rather, to explore the many exciting opportunities it presents for consumers and brands alike.”
The bank explained that the metaverse has a market opportunity of $1 trillion in yearly revenue, as creators utilize Web3 to monetize their work.
“This democratic ownership economy coupled with the possibility of interoperability, could unlock immense economic opportunities, whereby digital goods and services are no longer captive to a singular gaming platform or brand,” according to the report.
A Real Estate-Backed NFT Sold For $653,000
A Florida home was auctioned off as an NFT (non-fungible token) — a potential first for both real estate and cryptocurrency.
The four-bedroom house sold for $653,163 of Ether. The winning bidder now holds the NFT, signifying ownership on-chain.
The property rights were minted as an NFT — significantly cutting down on closing time. The NFT holder will own the property via a limited liability company (LLC) that houses the crypto asset.
“This is just the first seller in our pipeline and we’re seeing a lot of demand,” Natalia Karayaneva, chief executive of Propy, said in a statement.
El Salvador’s Bitcoin adoption pose risks to US financial system?
Senators in the United States presented legislation last week demanding the State Department to submit a report on El Salvador’s Bitcoin Law and devise a plan to “mitigate possible dangers to the United States’ financial system.”
The proposed law, the Accountability for Cryptocurrency in El Salvador (ACES) Act, was today introduced by Jim Risch (R-Idaho), Bob Menendez (D-N.J.), ranking member and chairman of the Senate Foreign Relations Committee, and Bill Cassidy (R-La.).
In a statement, the Senators explained that El Salvador’s Bitcoin Law “raises significant concerns” about the economic stability and financial integrity of a vulnerable U.S. trading partner in Central America — with the new policy potentially weakening U.S. sanctions policy and empowering malign actors.
President Bukele responded on Twitter by calling the lawmakers “boomers.” “We are not your colony, your back yard or your front yard,” he wrote. “Stay out of our internal affairs. Don’t try to control something you can’t control.”
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