Crypto market inches into positive territory under political spotlight
Green shoots of optimism are sprouting across the crypto market as Bitcoin brushes against $38K.
The rising prices could be driven by publicity at the highest political levels. On Tuesday, the International Monetary Fund (IMF) urged El Salvador to stop using Bitcoin as legal tender. Meanwhile, politicians in multiple U.S. states announced plans for adoption, and the White House was reported to be preparing an executive order that will call on federal agencies to regulate cryptoassets “as a matter of national security.”
Against this backdrop of growing adoption, Altcoins showed varied performance. Metaverse tokens moved higher with SAND and MANA making double-digit gains, while smart contract blockchains ATOM and SOL suffered equally large losses.
This Week’s Highlights
– Bitcoin rises under the political spotlight
– Metaverse tokens surge as Goldman eyes $8 trillion opportunity
Bitcoin rises under the political spotlight
As the leader of a rapidly maturing asset class, Bitcoin is finding itself at the center of political debates around the world.
Last week, the IMF urged El Salvador to drop Bitcoin as legal tender, while politicians in a smattering of U.S. states laid out plans for adoption. Arizona Senator Wendy Rogers introduced a bill that would make Bitcoin legal tender in the state, while Texas Governor Abbott embraced Bitcoin mining, and Colorado Governor Jared Polis reiterated plans to allow taxes to be paid in crypto.
Meanwhile in Russia, president Putin said the country has “certain competitive advantages” when it comes to mining cryptoassets such as Bitcoin.
Metaverse tokens surge as Goldman eyes $8 trillion opportunity
Outperforming other altcoins in the last week, Metaverse tokens soared after global investment bank Goldman Sachs identified the market as an $8 trillion opportunity.
Decentraland’s MANA token added 20%, boosted by additional news of the first mortgage on virtual land, and SAND, the token powering metaverse platform The Sandbox, gained 40% on a partnership with Warner Music.
Elsewhere, big mainstream brands have started recruiting top metaverse talent. Nike is looking to appoint a metaverse director, and Verizon has posted vacancies for a range of metaverse-related job titles.
Week ahead
Although Bitcoin appears to be stabilizing, uncertainty is still lingering around the changing macro environment and the threat of war in Ukraine.
In the coming weeks, the Biden Administration is set to release an executive order concerning cryptoassets. This could set the tone for future trading, with anti-crypto measures weighing heavily on the market, and balanced rules potentially helping to boost the recovery.