Crypto Scoop: Bitcoin Slips Below $56,000 as Several Crypto Adoption Policies Are Rolled Out!

Bitcoin Slips Below $56,000 amidst Market Fears

Bitcoin appears to have slipped into a bearish run since its ATH, with the price falling as low as $55,000. Analysts believe the new coronavirus type may have contributed to the drop. A unique coronavirus strain with vaccination resistance has been discovered in South Africa, Botswana, and Hong Kong, according to reports. This may have caused some distress, as individuals feared that if the rumours were genuine, it would result in some covid-19 restrictions, if not a complete lockdown.

Although medical professionals are still striving to understand the new variant and its implications, some traders may have been concerned that it would have a negative impact on the economy, potentially causing the price of bitcoin to plummet. However, despite the market drop, bitcoin's sentiment remained resilient, and institutional investors have taken initiatives to increase their bitcoin holdings. Despite the bearish run, CoinShares recorded $114.4 million in weekly inflows from bitcoin investors.

El Salvador Pursues Crypto Adoption Cause Defying IMF

Despite the IMF's recommendation that bitcoin not be used as legal tender, El Salvador's government has stepped up its efforts to promote bitcoin use. El Salvador's dollar-dominated bonds, on the other hand, have plunged to an all-time low of $0.664 as the Central American country's debt entered "distressed territory" this week. This came after reports that El Salvador's government would start using bitcoin funds to fund its Bitcoin city initiative. Dollar bonds, which were initially valued at $1.10 in April 2021, were selling at $0.664 on November 22.

Investors are hesitant that President Nayib Bukele’s action may have restricted the IMF from loaning funds to the country for development. While there is a dispute about the effects of the dollar bond drop, the government of El Salvador is planning to use the excess from its bitcoin trust to build 20 schools. Profits from past bitcoin purchases would likewise be used to help the general public without affecting tax revenues. In response to the loan request, the IMF issued a statement saying that bitcoin should not be used as legal tender and recommended: "narrowing the scope of the Bitcoin law and urging stronger control and supervision of the new payment ecosystem."

Although the IMF is wary of El Salvador's crypto adoption movement, it has disclosed that Nigeria's eNaira (CBDC) is gaining traction around the world and that other governments are considering launching similar initiatives. One of the benefits of eNaira, according to the paper, is that it is non-volatile, unlike cryptocurrencies such as bitcoin and ethereum. This strengthens the stance of Nigeria's central bank, which claims that it will assist in minimizing remittance costs and increase financial inclusion in the country. The IMF, on the other hand, believes that it may pose some new challenges, such as lower demand for commercial bank deposits. To defend its CBDC, the government may need to review its cyber security and infrastructure. The IMF also noted the initial difficulties encountered by the eNaira upon its launch, when Nigerians reported difficulties in using it as a potential challenge

Spanish Banks Prepare to Offer Crypto Services

Crypto enthusiasts in Spain are still waiting for the Spanish Bank to follow through on a promise it made in June to issue instructions or, to put it another way, regulations for individuals and businesses interested in providing crypto services. Is this something that will happen soon, or will they have to wait longer?

Banks in Spain appear to be ready to offer crypto services to its customers, but there is still question surrounding this readiness because it requires approval from the Central Bank, which has yet to take a firm stance on the subject. The Spanish daily El Pais reported on Tuesday that registrations for Crypto services that were supposed to be available by October 29 had not yet begun. As a result, banks and other financial institutions are still awaiting approval.

Regardless, it's unclear whether the registry — which is primarily intended to combat money laundering – is intended for existing regulated financial firms, newcomers, or both. Indeed, many significant financial institutions, business tycoons, and enterprises are anxiously anticipating the Central Bank's announcement. Thailand's authorities have also been urged to authorize tourist cryptocurrency in order to attract digital nomads According to local sources, the Tourism Authority of Thailand's TAT Coin is nearing completion and is currently seeking government approval. According to local media, a plan to improve Thailand's gross domestic product (GDP) by luring crypto digital nomads is nearing completion. Since September, the Tourism Authority of Thailand (TAT) has been considering introducing its own utility token, TAT Coin, as part of a planned "cryptocurrency" campaign. The idea hopes to attract crypto-wealthy digital nomads, and the TAT has been in talks with Thailand's Stock Exchange on the issuance of TAT Coin. The TAT Coin is "ready to go" and is now waiting for the Thai government's approval.

Fraudsters impersonating Michael Saylor defraud individuals of $4 million worth of Bitcoin

Under the guise of a giveaway, an imposter posing as Microstrategy's CEO, Michael Saylor duped crypto enthusiasts of $2 million. This isn't the first time bitcoin users have been taken advantage of. Previously, bitcoin users were defrauded of funds in a giveaway scam using Elon Musk's name. The scammer in Michael Saylor's received more than 80 bitcoins (BTC) in 50 transactions totaling $4.5 million. Scams involving cryptocurrency have become more common. Earlier this year, Ripple's chief executive, Brad Garlinghouse, filed a lawsuit against YouTube for failing to police its platform and prevent fraudsters from impersonating him, resulting in millions of dollars in losses for unsuspecting individuals. However, the case was eventually settled outside of court.

Read also: How To Spot And Avoid Crypto Scams

Grayscale says metaverse is a $1 trillion industry

Many people have become aware of the metaverse because Facebook changed its name to Metaverse. Crypto enthusiasts, as well as the rest of the globe, have began to take a closer look at what the catchphrase implies and the possibilities it contains. According to a Grayscale assessment, the metaverse's economic potential is rapidly approaching $1 trillion. The metaverse is a merging of the real and physical worlds with the virtual world, where people can engage in activities that are comparable to those they engage in in the actual world.

Individuals can own virtual products, objects, and even "real estate" in the new virtual world, just as they do in the actual world. Users of metaverse-based wallets have surged by 10x since the beginning of the year, according to Grayscale, reaching about 50,000 active wallets. It went on to say that, while the space is still relatively young, it has the potential to become mainstream in the next years if it maintains its current growth trajectory. Investors are beginning to see the space's huge potential, which has resulted in an increase in funding for the budding sector.

Grayscale reports that blockchain gaming and metaverse-related ventures raised $1 billion in new funding from investors in just the third quarter. Polkastarter, a Polkadot launchpad platform, announced yesterday that it will begin selling real estate land. PolkaStarter also brings metaverse 'land sales' to Polkadot. Polkastarter users will be able to become virtual land owners starting next week. The first NFT metaverse Land Sale will take place next week on Polkastarter, according to the company's release, allowing people to purchase real estate from the greatest metaverse projects. Purchasing virtual land is now as simple as purchasing tokens.

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