Cryptocurrencies

Cryptocurrencies prepare for winter, virtual Adidas and a bitcoin city

Cryptocurrencies prepare for winter, virtual Adidas and a bitcoin city

A representation of the virtual cryptocurrency Bitcoin is seen in this illustration taken October 19, 2021. REUTERS/Edgar Su

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  • Omicron is concerned about the impact of major cryptocurrencies
  • Ether and other DeFi, metaverse-linked tokens outperform bitcoin
  • El Salvador plans to build “Bitcoin City”
  • Adidas partners with Coinbase

Nov 29 (Reuters) – Cryptocurrencies weathered one of the biggest market shocks since the early days of the pandemic last week, with El Salvador a notable buyer on the downside, while investors decided not to not share Adidas’ enthusiasm for a foray into the buzzing metaverse.

El Salvador’s plans to build the world’s first “Bitcoin City” and the entry of Adidas were the bright spots for digital assets in a week that saw major cryptocurrencies snuffed out by fears over the new variant of Omicron coronavirus.

Bitcoin was down 0.5% on Monday and lost around 17% of its value from a 19-day all-time high of $69,000. But rival monetary ether and tokens tied to the metaverse and decentralized finance apps fared better.

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Adidas’ move made waves after the German sportswear retailer said it was partnering with Coinbase Global Inc (COIN.O)in a tweetalthough the actions of Adidas (ADSGn.DE) did not join in this celebration.

the the company also bought a piece of virtual land called “adiVerse” in the blockchain-based world The Sandbox, with the German company hinting that it would build it to offer virtual reality products, and comes at a time when it warned of a sales success due to supply chain hitches.

“It’s something important because it’s also a clue to what’s about to hit fans in a few months in the NFT space: Adidas sneakers and other virtual apparel, shoes and items. brand,” said Ipek Ozkardeskaya, principal analyst at Swissquote.

The price of SAND, the virtual currency used to buy property and other items, jumped 90% to $7.18 on the news, according to CoinGecko, receiving a second boost since Facebook was renamed Meta Platforms Inc. (FB.O) at the end of last month. Read more

MANA, the speculative currency used in the leading online world based on the Decentraland blockchain, jumped 36% to $4.90. Land and other items on Decentraland are sold in the form of non-fungible tokens (NFTs).

Besides the sell-off sparked by the Omicron news, the biggest headwind for bitcoin and ether in the past week came from the Indian government’s announcement of a bill banning most private transactions from cryptocurrency by the approximately 15-20 million crypto investors in the country. Read more

‘SURVIVING THE WINTER’

Bitcoin traded around 4,376,477 Indian rupees ($58,296.12) on Indian exchange WazirX, a slight premium to prices outside the country, rising from a 15% discount on Tuesday after the ‘announcement.

“If it’s a blanket ban, in combination with China, you’re talking about two centers of the world’s population that are effectively locked down by crypto,” said Simon Peters, crypto analyst at eToro.

Elsewhere, the Salvadoran president announced plans to build the world’s first “Bitcoin City,” initially funded by bitcoin bonds. El Salvador adopted bitcoin as legal tender in September. Read more

Average daily trading volumes across all types of digital asset products fell an average of 13% from late October to November 19, while net inflows averaged $203 million, half that of October, according to data from CryptoCompare.

It showed that while assets under management in bitcoin-related products fell 9.5% to $48.7 billion in the first three weeks of November – the biggest month-over-month decline since July – assets in ether products have increased by 5.4%.

Decentralized finance-linked tokens Solana (SOL) and Litecoin-based products returned 22.0% and 14.9% respectively in the 30 days to November 19, with daily trading volume in the 21Shares ETP Solana nearly tripling to $6.3 million, CryptoCompare noted.

A parcel of virtual real estate in Decentraland sold for a record $2.4 million worth of cryptocurrency on November 23, the buyer – crypto investor Tokens.com (COIN.NLB) – said. and Decentraland. Read more

Meanwhile, the approaching December holiday season could increase volatility, while the U.S. Federal Reserve’s stimulus cut could be bearish for bitcoin, analysts said.

“There should be more agnostics focusing on the fact that we’re in a bad part of the crypto cycle here — the corrections could be epic,” said Brent Donnelly, president of market analytics firm Spectra. Markets.

“Make sure you can survive the winter.”

($1 = 75.08 Indian rupees)

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Reporting by Lisa Pauline Mattackal and Medha Singh in Bengaluru Additional reporting by Tom Westbrook in Sydney Editing by Vidya Ranganathan and

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