Last week, cryptocurrencies experienced one of the largest market shocks. At the same time, El Salvador became a notable buyer of the fall.
The most striking events of last week were El Salvador's plan to build the world's first "Bitcoin City" and the release of Adidas.
Last Monday, Bitcoin declined by 0.5%, losing 17% of its value from a record $69,000. Meanwhile, competing currency ethers and tokens related to metaverse applications and decentralized finance turned out to be better.
Adidas made a splash after the German sportswear retailer announced in a tweet about cooperation with Coinbase Global Inc. But the company's shares did not react.
CoinGecko reported that the price of the virtual currency SAND, which is used to buy properties and other items, surged by 90%, namely to $7.18. It received the second increase since Facebook renamed itself Meta Platforms Inc at the end of last month.
The speculative currency MANA used in the blockchain-powered online world of Decentraland surged 36% to $ 4.90. Land and other items on Decentraland are sold in the form of non-fungible tokens (NFT).
In addition to the sell-off caused by the Omicron news, the biggest obstacle for Bitcoin and Ethereum last week was the announcement by the government of India of a bill banning private cryptocurrency transactions to about 15 to 20 million crypto investors in the country.
Analysts believe that the approaching December holiday season may increase volatility, while the reduction of the US Federal Reserve's stimulus may be bearish for Bitcoin.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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