Bitcoin Hovers Below $50k After Weekend Wipeout – Crypto Roundup, Dec 6, 2021
December 08 2021 - 7:48AM
NEWSBTC
Ethereum shows strength as MATIC rises 7% Global market
jitters spread to crypto at the weekend, with Bitcoin falling to
$42K before bouncing to almost $50K. Markets are digesting multiple
uncertainties, including the many unknowns of the Omicron variant,
and the possibility of an end to pandemic-era central bank
stimulus. Combined with thin weekend trading volume and the build
up of leverage, this led to cascading sell orders and liquidations
across the crypto market on Saturday. Nevertheless, El Salvador’s
President Nayib Bukele was not deterred and joined MicroStrategy in
buying the dip. In a show of strength, Ethereum outperformed
Bitcoin during the downturn. The leading smart contract platform
stayed above $4K, showing only 6% weekly losses compared to
Bitcoin’s 15%. Even stronger, Layer 2 solution Polygon (MATIC)
emerged from the downturn with 6% weekly gains. This Week’s
Highlights Ethereum outperforms Bitcoin Polygon’s MATIC rises
against the market eToro lists Celo On the Digest & Invest
podcast this week… Ethereum outperforms Bitcoin Ethereum showed
relative strength during the weekend drop; losing less value and
recovering faster, in line with the trend of recent months. Both
cryptoassets have fallen significantly from the record highs set in
November, yet since December 2020 Bitcoin has doubled in value,
while Ethereum has gained about 530%. In response, some traders are
calling for a “flippening” where Ethereum overtakes Bitcoin as the
biggest cryptoasset. The outperformance could be down to Bitcoin’s
more established role as a macro asset that trades on economic data
and global trends, compared to Ethereum which is more associated
with the hottest crypto growth sectors such as decentralized
finance (DeFi), non-fungible tokens (NFTs), and the metaverse.
Polygon’s MATIC rises against the market A flash of green in a sea
of red, Polygon’s MATIC token pushed against the falling market to
finish the week with 6% gains. The buoyancy of the Layer 2 network
could be attributed to the announcement of a new partnership with
GameOn Entertainment to build NFT games on the network, and the
recent release of a new JavaScript library. Elsewhere, few other
smart contract platforms matched MATIC’s resilience. Algorand
managed to stay flat and hold against the downturn, while Polkadot
and Cardano suffered double-digit losses. eToro lists Celo eToro’s
expansion of supported cryptoassets continues with the listing of
Celo. Celo is the native token of the Celo platform, which aims to
use blockchain to bank the unbanked, making it possible for anyone
to settle payments in crypto between mobile devices without the
need for financial institutions. The launch brings the total number
of cryptoassets available on eToro to 41. On the Digest &
Invest podcast this week… Tune in to Digest & Invest to hear
eToro’s Sam North interview the CEO of Chiliz and Socios.com
Alexandre Dreyfus. Week ahead The swing lower has shifted market
sentiment to Extreme Fear, as traders worry that more downside
could be in store. On the upside, others argue that the wipeout has
washed out excess leverage in the market, potentially setting up
healthier conditions for a more sustainable price rise in the near
future. In the week ahead, regulatory developments could set the
tone for trading as a handful of crypto industry executives are set
to testify before US lawmakers on Wednesday. Image: Pixabay
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