Crypto Scoop: Bitcoin Rallies To $20,000 Amid Bearish Market Conditions

While cryptocurrencies may be trading in red, market sentiments, remain positive as several countries and popular brands pursue crypto and NFT initiatives. In this week’s crypto scoop, we review 

• Price moves of top cryptocurrencies
• Crypto adoption in Namibia and Japan
• Football league, Laliga’s NFT and metaverse initiatives
• SEC charges to celebrity Kim Kardashian and much more. 

Bitcoin Scales to $20,000 Amid Bearish Market Conditions

The top cryptocurrency, bitcoin, which had been trading slightly above $19,000 in September, was able to rally above $20,000, while ETH still trades at $1,300. The bearish market condition extends further past cryptocurrencies to fiat currencies like dollars based on inflation and other factors. 

The famous author of the award-winning book Rich Dad Poor Dad, Robert Kiyosaki, predicted that the US dollar would crash because of the government’s rise in interest rates in January 2023. He encouraged readers to find alternatives to dollars, and bitcoin was recommended as a solution. 

While BTC trades below its ATH, BTC’s hash rate spiked to a new all-time high of 244.25 EH/s, according to Glassnode data. Speaking on Bitcoin mining, Charles Hoskinson, co-founder of Cardano, recommended that BTC mining be paused and BTC moved to a small contract-enabled platform like ETH. He noted, “if Bitcoin’s network is shut down, the flagship digital asset can continue to exist as wrapped Bitcoin on other networks. In his view, the industry would not need the proof-of-work consensus mechanism because it is the “gold mine” to get the asset.”

Stablecoin Circulation Dropped By $38 Billion In The Last 4-Months

The global circulation of stablecoins has declined by nearly $38 billion since early May, according to the most recent DefiLlama data. Tether USDT ($68.2 billion), Circle USDC($46.7 billion), Binance USD ($21.4 billion), and DAI($6.33 billion) account for the majority of the remaining $148.7 billion in circulation.

Tether, USDT issuer, has reduced its commercial paper holdings to less than $50 million, according to Tether Chief Technology Officer Paolo Ardoino. The firm increased its holdings of US Treasury securities to 58.1% of its total portfolio from 43.5% as of June 30.

Commercial paper is a type of short-term unsecured debt issued by corporations, the value of which is determined by the issuing company. Commercial paper has a lower level of stability than other debt securities such as US Treasury bonds. 

Tether stated that it will sell all of its commercial paper holdings by the end of the year to curb rising worries about the stability of the Tether ecosystem and its stablecoin, USDT.

DOGE Rises By 8% Following Elon Musk’s Renewed Bid For Twitter

Earlier this week, it was announced that Elon Musk has reissued his original bid to buy Twitter. Following the news, Dogecoin saw a spike of about 8%. 

This spike is due to Musk suggesting adding the capability for users to pay for Twitter’s premium service, Twitter Blue, using Dogecoin prior to the deal being suspended in the past,

Namibia and Japan Pursue Crypto And Metaverse Initiatives

According to blockchain analytics firm Chainalysis, the Middle East and North Africa (MENA) region was the fastest-growing market for crypto adoption for the 12-month period ending June 30. Egypt saw the greatest percentage growth, with crypto transaction volume more than tripling following the Egyptian pound's 13.5% depreciation. 

The Bank of Namibia has announced that it has included virtual assets and virtual asset service providers in its regulatory framework for fintech development. The Namibian Central Bank stated that although virtual assets "remain without legal tender status,"  merchants can accept them as payment.

Fumio Kishida, Japan's Prime Minister, expressed plans to increase investments in the metaverse and NFTs. Kishida stated that the government will continue to promote projects to enhance the implementation of Web3 services driven by Metaverse and NFT technologies. He also emphasised that the government's commitment to the country's digital transformation already includes providing NFTs to local governments to solve jurisdictional concerns using digital technology.

Telefonica, one of the world's largest and Europe's fourth-largest telecom, has invested in the Spanish cryptocurrency exchange Bit2me. The company, which has been quite active in the metaverse domain, is entering the crypto payments arena by running a test that will allow its clients to make purchases with an upper limit of $490 via its online store Tu.com.

Laliga Partners With Globant to Support Web3 and Metaverse Initiatives

Laliga, Spain's premier soccer league, has partnered with Globant, an Argentine software corporation, to deliver Web3 and metaverse experiences to its fans. The collaboration will bring together Globant's tech resources and Laliga's tech division to create products that will help the organisation increase its digital reach.

Fashion giant, Hugo Boss also collaborated with Imaginary Ones to introduce its NFT range and the new metaverse experience. The collaboration will provide a new 360-degree experience of the Metaverse.

The fashion brand described its entry into the Metaverse as a crucial milestone in "refreshing" the brand globally. The NFT collection is set to debut in early November 2022, with the goal of encouraging everyone to connect with and own their emotions, whether pleasant or unpleasant.

Warner Music Group also announced a partnership with OpenSea to enable musicians to interact with their fans via Web3. Select artists will have early access to the platform's new customisable drop pages feature.

According to WMG executive Oana Ruxandra, the relationship will enable artists to build stronger engagement with their communities.

Kim Kardashian Charged $1.26 million for Unlawfully Pushing Ethereummax

The SEC has charged socialite Kim Kardashian with illegally promoting Ethereummax.  Kardashian's message included a link to the Ethereummax website, which gave instructions for potential investors to purchase EMAX coins."

Kardashian failed to disclose that she was paid $250,000 to publish the Instagram post to her 228 million followers that day.   According to the US regulator, Kardashian agreed to resolve the accusations and pay $1.26 million in penalties, and she intends to cooperate with the SEC's ongoing investigation.