Home Adidas product Cryptocurrencies are gearing up for winter, virtual Adidas and a bitcoin city

Cryptocurrencies are gearing up for winter, virtual Adidas and a bitcoin city

0


A representation of the Bitcoin virtual cryptocurrency can be seen in this photo illustration taken on October 19, 2021. REUTERS / Edgar Su / File Photo

Register now for FREE and unlimited access to reuters.com

Register now

  • Omicron worries about impact of major cryptocurrencies
  • Ether and other DeFi, metaverse-linked tokens surpass bitcoin
  • El Salvador plans to build “Bitcoin City”
  • Adidas partners with Coinbase

Nov. 29 (Reuters) – Cryptocurrencies survived one of the biggest market shocks since the early days of the pandemic last week, with El Salvador a notable buyer, while investors decided not to share Adidas’ enthusiasm for a foray into the animated metaverse.

El Salvador’s plans to build the world’s first “Bitcoin City” and the entry of Adidas were the bright spots for digital assets in a week that saw major cryptocurrencies crushed by fears concerning the new variant of the Omicron coronavirus.

Bitcoin was down 0.5% on Monday and lost around 17% of its value from a record $ 69,000 in the past 19 days. But currency ethers and rival tokens tied to the metaverse and decentralized financial applications have fared better.

Register now for FREE and unlimited access to reuters.com

Register now

Adidas’ move made waves after German sportswear retailer announced its partnership with Coinbase Global Inc (COIN.O)in a tweet, although Adidas actions (ADSGn.DE) did not join this celebration.

The the company also bought a piece of virtual land called “adiVerse” in the blockchain-based world The Sandbox, with the German company hinting that it would develop it to offer virtual reality products, and comes at a time when it has warned against a sales blow due to supply chain snags.

“This is something important because it is also a clue of what will hit the fan in a few months in the NFT space: Adidas sneakers and other branded clothes, shoes and virtual items,” said said Ipek Ozkardeskaya, senior analyst at Swissquote.

According to CoinGecko, the price of SAND, the virtual currency used to buy goods and other items, jumped 90% to $ 7.18, receiving a second boost since Facebook became Meta Platforms Inc (FB. O) at the end of last month. Read more

MANA, the speculative currency used in the leading online world based on the Decentraland blockchain, jumped 36% to $ 4.90. Land and other items on Decentraland are sold as Non-Fungible Tokens (NFTs).

Aside from the sale sparked by the Omicron news, last week’s biggest obstacle to bitcoin and ether came from the Indian government’s announcement of a bill that would ban most private transactions from cryptocurrency by the country’s 15-20 million crypto investors. Read more

“SURVIVE THE WINTER”

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

“If this is a blanket ban, in combination with China you’re talking about two centers of the world’s population that are effectively excluded from crypto,” said Simon Peters, crypto analyst at eToro.

Elsewhere, the President of El Salvador has announced his intention to build the world’s first “Bitcoin City”, initially funded by bitcoin bonds. El Salvador adopted bitcoin as legal tender in September. Read more

Average daily transaction volumes across all types of digital asset products fell an average of 13% from late October to November 19, while net inflows averaged $ 203 million, or half of those for October, according to data from CryptoCompare.

It showed that while assets under management of bitcoin-related products fell 9.5% to $ 48.7 billion in the first three weeks of November – the largest monthly decline since July – assets of products to ether base increased 5.4%.

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

A parcel of virtual real estate in Decentraland sold for a record $ 2.4 million worth of cryptocurrency on November 23, the buyer – crypto investor Tokens.com (COIN.NLB) – said. and Decentraland. Read more

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

“There should be more agnostics focusing on the fact that we’re in a bad part of the crypto cycle here – the fixes could be epic,” said Brent Donnelly, president of the market analysis firm. Spectra Markets.

“Make sure you can survive the winter.”

($ 1 = 75.08 Indian rupees)

Register now for FREE and unlimited access to reuters.com

Register now

Reporting by Lisa Pauline Mattackal and Medha Singh in Bengaluru Additional reporting by Tom Westbrook in Sydney Editing by Vidya Ranganathan and

Our standards: Thomson Reuters Trust Principles.