Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Cryptocurrencies brace for winter, virtual Adidas and a bitcoin city

ForexNov 29, 2021 10:58
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A representation of the virtual cryptocurrency Bitcoin is seen in this picture illustration taken October 19, 2021. REUTERS/Edgar Su/File Photo

By Lisa Pauline Mattackal and Medha Singh

(Reuters) - Cryptocurrencies survived one of the largest market shocks since the earliest days of the pandemic last week, with El Salvador a notable dip buyer, while investors decided not to share Adidas (DE:ADSGN)' excitement over a foray into the buzzy metaverse.

El Salvador's plans to build the world's first "Bitcoin City" https://www.reuters.com/markets/rates-bonds/el-salvador-plans-first-bitcoin-city-backed-by-bitcoin-bonds-2021-11-21 and Adidas's entry were the bright spots for digital assets in a week that saw major cryptocurrencies clobbered by fears over the new coronavirus variant Omicron.

Bitcoin was down 0.5% on Monday and has lost about 17% of its value from a record $69,000 over the past 19 days. But rival currency ether and tokens linked to the metaverse and decentralized finance applications have fared better.

Adidas's move made waves after the German sportswear retailer said it was partnering with Coinbase (NASDAQ:COIN) Global Inc in a tweet https://twitter.com/adidasoriginals/status/1463571957249630223, although Adidas shares did not join that celebration.

The company also bought https://twitter.com/adidasoriginals/status/1462873002350202882 a piece of virtual land called "adiVerse" in the blockchain-based world The Sandbox, with the German company hinting it would build that out to offer virtual reality products, and comes at a time it has warned of a sales hit due to supply chain snags.

"That's something big because it is also a hint of what's about to hit the fan in a couple of months in the NFT space: the Adidas sneakers and other branded virtual clothes, shoes and objects," said Ipek Ozkardeskaya, senior 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 (NASDAQ:FB) rebranded to Meta Platforms Inc late last month.

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

Besides the selloff triggered by news of Omicron, last week's biggest headwind to bitcoin and ether came from an Indian government announcement of a bill that would ban most private cryptocurrency transactions by the country's estimated 15 million to 20 million crypto investors.

'SURVIVE WINTER'

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

"If it is a blanket ban, in combination with China, you're talking two centres of the world's population that are effectively frozen out of crypto," said Simon Peters, crypto analyst at eToro.

Elsewhere, El Salvador's president announced plans to build the world's first "Bitcoin City," funded initially by bitcoin bonds. El Salvador adopted bitcoin as legal tender in September.

Average daily trading volumes across all digital asset product types fell by an average of 13% through Oct-end to Nov. 19, while net inflows averaged $203 million, half that in October, according to data from CryptoCompare.

It showed that while assets under management in bitcoin-related products have fallen 9.5% to $48.7 billion in the first three weeks of November - the largest month-on-month fall since July - assets in ether products rose 5.4%.

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

A patch of virtual real estate in Decentraland sold for a record $2.4 million worth of cryptocurrency on Nov. 23, the buyer - crypto investor Tokens.com - and Decentraland said.

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

"There should be more agnostics focusing on the fact we are in a bad part of the cycle for crypto here - the corrections could be epic," said Brent Donnelly, president at market insights firm Spectra Markets.

"Make sure you can survive winter."

($1 = 75.08 Indian rupees)

Cryptocurrencies brace for winter, virtual Adidas and a bitcoin city
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email