Crypto market analysis: December 6, 2021

Bitcoin and Ethereum suffered a major flash crash over the weekend, and the value of encrypted assets fell by about 20%. Prices have now rebounded, but the trading prices of the two cryptocurrencies are still far below the levels before the weekend.

Bitcoin started trading in the $57,000 range last week, and there have been some changes this week, but nothing remarkable. However, this situation changed on Friday as crypto assets began to fall sharply. BTC fell to a low of $45,412 within a few hours-a drop of nearly 20%.

Ether has also become a victim of a flash crash. After ETH rose to $4,700 in the middle of the week, it began to fall from around $4,600 to a low of $3,652 in Friday’s trading-a drop of more than 20%.

Since then, both crypto assets have restored a certain degree of stability, and prices have rebounded moderately. The current trading price of BTC is approximately US$47,900, while the trading price of ETH is approximately US$4,000.

There has been speculation about the cause of the flash crash, with some analysts claiming that leveraged positions have expired. At the same time, other evidence suggests that investor activity in transferring crypto assets from wallets to exchanges has increased significantly-which makes the reaction to price changes even more violent.

However, the broader context of the investment market’s concerns about Omicron also seems to be at work.

Canada launches Bitcoin spot ETF

Fidelity Investments, a major asset management company, owns a Bitcoin spot ETF in Canada.

ETF-A Bitcoin ETF called Fidelity Advantage invests directly in Bitcoin or through derivatives. At least 98% of ETF holdings will be stored in cold wallets.

The fund is listed on the Toronto Stock Exchange under the ticker symbol FBTC. For customers who can choose to invest in Canadian dollars or U.S. dollars, the fund will charge investors a 0.4% management fee.

Canada is a popular destination for crypto ETFs, with more than 20 types available for Canadian investors. However, Fidelity’s products are unique among crypto ETFs in terms of offering physical holdings of Bitcoin rather than futures trading.

MercadoLibre accepts crypto assets

MercadoLibre, the main Latin American online market, now allows Brazilian customers to exchange and pay for products in crypto assets.

The company announced that users in Brazil will be able to buy, hold and sell Bitcoin, Ether and the USD-based stablecoin Pax Dollar.

The combination of the two main crypto assets and stablecoins on MercadoLibre’s payment platform MercadoPago will enable customers to use their crypto assets to trade products priced in fiat currencies.

MercadoPago is authorized by the Central Bank of Brazil, making it easier for the company to start its encryption business there. But MercadoLibre is more commonly operated in many Central and South American countries, which shows that as it expands its product range, millions of new encrypted payment potential customers.

After Dorsey Twitter resigned, Square changed its name

A few days after its CEO Jack Dorsey stepped down as head of Twitter, payment company Square announced that it would change its name to “Block.”

The company stated in its announcement that the new name has many connections, but one of them is the use of blockchain technology in some of its projects.

Square Crypto is a separate program of the company to promote the use of Bitcoin and also changed its name to Spiral.

However, the Square brand will not disappear-Square is still the name of the company’s seller business, which is one of the stable brands and now includes Cash App, TIDAL and TBD54566975.

Jack Dorsey announced last week that he had left Twitter abruptly. Many people speculated that he would spend more time on crypto and blockchain projects, and his now renamed company Block is at the forefront. .

Head of Meta cryptocurrency resigns

As there are still doubts about the launch of the stablecoin Diem, the head of Meta’s (formerly Facebook) encryption department will leave the company.

David Marcus announced that he will leave the company in seven years and has been working on Meta’s financial products since the company’s Libra encryption project was first announced in May 2018.

The project later evolved into a payment wallet called Novi, which contained crypto assets called Diem. Encrypted wallets have been launched, but the launch of Diem is still elusive.

Meta encountered major obstacles when launching its encryption products. Mark Zuckerberg, CEO of Meta, commented on Marcus’s post when commenting on his departure: “Without your leadership, we would not have made such a big volatility in Diem. I am grateful that you let Meta be our big bet. place.”

This is a marketing communication and should not be regarded as investment advice, personal recommendation, offer or invitation to buy or sell any financial instrument. The preparation of this material did not consider any specific investment objectives or financial situation, nor did it follow the legal and regulatory requirements for the promotion of independent research. Any reference to the past performance of financial instruments, indexes or a basket of investment products is neither, nor should it be regarded as a reliable indicator of future results.

All the content in this report is for reference only and does not constitute financial advice. eToro makes no representations or assumes any responsibility for the accuracy or completeness of the content of this publication. This publication is prepared using public information.

Encrypted assets are volatile tools that can fluctuate significantly in a short period of time, so they are not suitable for all investors. Except through CFDs, trading crypto assets is not regulated and therefore not subject to any EU regulatory framework. Your funds are in danger.

Image: Pixabay

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