30.12.2021 11:00 AM
Metaverse is gaining popularity

Ether hit $ 3,680, while Bitcoin dipped below $ 48,500. This put pressure on trading instruments.

Meanwhile, the metaverse is gaining traction. Just yesterday, it was reported that ProShares filed for a new ETF focused on the industry, saying its "metaverse thematic ETF" will track the performance of the Solactive Metaverse Theme Index (SOMETAV).

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The index is expected to provide ETFs an access to US companies listed on the New York Stock Exchange and Nasdaq that meet certain market capitalization and liquidity requirements. It includes major tech giants such as Apple, Microsoft, Intel, Meta and Nvidia.

On a different note, politicians have been paying quite a lot of attention to cryptocurrencies. Some even changed their attitude towards the subject from negative to positive. However, Democrat Elizabeth Warren is not among their ranks.

"Cryptocurrencies are not a real path toward financial equality," she said, criticizing the industry for the fact that more wealthy people own Bitcoin. "We need real solutions to make the financial system work for everyone, not just the wealthy," she added.

Warren pointed to the digital dollar, which is being actively promoted by the Federal Reserve and other financial departments of the country.

Recently, Congress and other federal regulators have been tightening their grip on cryptocurrencies amid growing calls for tougher rules for the fast-growing industry. Critics say digital currencies can destabilize the economy and are vulnerable as they can be used to benefit individuals, putting investors at risk.

That is why Wyoming Senator Cynthia Lummis announced that she plans to introduce a comprehensive bill next year that will cover everything from digital asset taxation and categorization to consumer protection. Clearly, the Fed and the tax office will not let go of this rapidly developing industry, which will prompt more attention to cryptocurrencies.

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The bill, if passed, is expected to provide regulators with a clear understanding of which assets are in which classes, provide consumer protection, regulate stablecoins and create a new entity under the joint jurisdiction of the Commodity Futures Trading Commission and the Securities and Exchange Commission ...

Speaking of Bitcoin, bulls missed $ 48,460 so they have to think of a way to return to it. Without this level, it will be very problematic to build a new major trend. There is still hope at $ 45,250 though, where a fairly large number of players are concentrated. But its breakdown will prompt a drop to $ 41,600 and $ 37,380, where a rebound will take place. Growth will occur if the quote goes beyond $ 48,460, as that will open opportunities to reach $ 51,800, $ 55,120 and $ 58,776.

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As for Ethereum, buyers lost control of $ 3,912 so they must work very hard to defend $ 3,680. Its breakout will cause a massive decline, so it would be best to be patient and open long positions only after reaching $3,448 and $3,046. Growth will occur after the quote hits $3,912 again and rises to $ 4,140. That will open opportunities to reach $ 4,404 and $ 4,647.

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Jakub Novak,
Analytical expert of InstaForex
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