Following a highly shaky weekend, several cryptocurrencies attempted a climb before approaching the Christmas holidays, in what is being seen as the final attempt of 2022 toward an upward rally. However, key names in the crypto-realm, such as Bitcoin and Ethereum appear to face crucial resistance points that are slowing their price trajectories. Overall, there is a pervasive sense of uncertainty dominating the wider market mood, and a breakthrough may very well take place in either direction, during the coming days.
Crypto-Highlights of the week
- After rising to a high of over $17,800, Bitcoin was unable to maintain its gains with the volatility the weekend brought, falling to almost $16,400 by Monday. Ethereum too went through an almost similar price trend, falling beneath $1,200 by Monday. Both crypto-names remain at critical resistance points, unable to surmount beyond, toward much-needed price appreciation.
- The Basel Committee, the institution in charge of setting global bank standards and paving the way for regulations worldwide, has completed its new guidelines linked to banks and crypto-assets. The agreement proposes two different digital asset classes, with the first belonging to mainstream cryptocurrencies, whereas the other consists of stable coins and similar tokenized real assets. The Committee clarified the basis of collateral and the amount that banks can legally hold, regarding each class.
- The Chinese coastal region of Zhejiang has been working towards the grand goal of building a futuristic, and state-of-the-art metaverse hub within its local jurisdiction. Officials have revealed that, according to finalized timelines and plans, the goal is to attract over $28 billion towards the metaverse sector by 2025, and establish a complete ecosystem where multiple players can access and use this technology.
- In the Indian lower house, the federal government offered some new developments regarding the recently passed cryptocurrency law as well as control over cryptocurrency exchanges. The minister of finance stated that because cryptocurrencies are virtual, and beyond the jurisdiction of a single country, there is much need for coordination between international governments.
- Recently, US Senator Pat Toomey went on the record to make a strong case for the crypto industry. He argued that the FTX crash must not wash over the legal and innovative domains of the wider industry. He also spoke up on how it could simply migrate to other jurisdictions.