The cryptocurrency market has been in a state of flux lately, with Bitcoin, Ether, and other digital assets experiencing a sharp decline on Friday due to fears of a new mutated variant of Covid-19. This drop has been attributed to a number of factors, including Black Friday and the Thanksgiving holiday. Despite initial skepticism about its applicability in the mainstream economy, Bitcoin has gained much acceptance and is now being accepted for payments by large companies such as Microsoft and Tesla. The Black Friday discount shopping event has caused Bitcoin and cryptocurrency prices to fall sharply, along with stock markets around the world that have been affected by the new Covid-19 variant. Bitcoin whales that accumulate cryptocurrencies are usually seen as a sign of optimism about the cryptocurrency's price trajectory.
However, even Bitcoin was not spared from the carnage, despite many cryptocurrency enthusiasts seeing it as a protection against financial market turbulence. The advanced NVT signal aims to monitor investors' habits by dividing Bitcoin's market capitalization by the 90-day moving average of the network's transaction volume. China recently dealt a blow to the cryptocurrency market when it ordered the complete shutdown of Bitcoin mining in its Sichuan province and told banks to stop supporting cryptocurrency transactions. This is part of a new wave of crypto restrictions in the country.
Bitcoin futures ETFs are designed to allow investors to trade on futures contracts and away from the usual media of cryptocurrency exchanges such as Binance, which have come under increased scrutiny by regulators around the world. However, the environmental impact of Bitcoin mining has caused Tesla to withdraw this option for customers. Bitcoin fell sharply alongside other assets on Friday, hitting a seven-week low and officially entering bear market territory. Despite reports that US regulators are looking for new ways for banks to keep crypto assets and address their rise, the SEC recently rejected VanEck's proposal for its own Bitcoin exchange-traded future (ETF).
Matthew Dibb, chief operating officer and co-founder of Stack Funds, told CoinDesk that Bitcoin could continue to lose value. Bitcoin is traded on cryptocurrency exchanges such as Coinbase and Binance, and its price continues to fluctuate from time to time. The bill on cryptocurrencies and regulation of the official digital currency drafted by the Government of India has seen fears of a cryptocurrency ban grow in the country, where the price of Bitcoin fell in the early hours of Wednesday morning. The SEC cited fears about “fraudulent and manipulative acts and practices in the cryptocurrency market” as the basis for its rejection of VanEck's futures proposal, reflecting that of the successful ProShares Bitcoin Strategy ETF.
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