Current Week in Cryptocurrencies: Omicron Drops Bitcoin to $53.5K, Ethereum Drops $4,000 or less

After the organisation shut down, the ConstitutionDAO token skyrocketed, and numerous altcoins set new all-time highs.

Reports of a new COVID strain dubbed Omicron wreaked havoc on stocks and crypto this week, driving Bitcoin’s price to $53,500 yesterday and Ethereum’s price to $3,933.

Bitcoin dropped about 9% in just a few hours.

It was on October 7 that the world’s largest cryptocurrency hit new lows.

Ethereum began the day at $4,400, implying that its quick losses amounted to almost 10% of its market worth. The coin has now recovered over half of its losses and is currently trading at $4,123.

 

On Monday, Bitcoin was 12.4% down from the previous week as concerns over the United States’ $1.2 trillion infrastructure bill mounted.

The bill introduces new tax reporting requirements for a variety of different custodial crypto services, including exchanges like Coinbase and Binance US, who are now considered “brokers”.

They’ll have to submit 1099 forms to the government on a regular basis, giving the identities and addresses of its users who make transactions. Under the new rule, non-custodial wallets might also be considered brokers, raising challenging questions concerning the types of data they acquire from customers.

Bitcoin and the broader crypto market, on the other hand, may have gotten a break in DC earlier this week. Five Democratic senators announced yesterday that they will not vote for the White House’s favoured nominee for the Office of the Comptroller of the Currency (OCC), crypto critic Saule Omarova, who would be the country’s chief bank regulator.

The opposition to Omarova’s candidacy has little to do with her stance on crypto, though. While the five senators’ offices declined to comment further on their rejection, Omarova’s academic history of publishing hard leftist ideas about tougher bank regulations was brought up in a defamatory hearing in which Senator John Kennedy questioned whether to call the Kazakh-American economist a “professor” or a “comrade”.

The altcoin digest

This weekend, only a few cryptocurrencies managed to avoid the fall. As the market leaders collapsed, the global crypto markets turned gloomy. Some cryptocurrencies, on the other hand, have managed to stay afloat and even prosper.

Earlier last month, the ConstitutionDAO was a big issue. The DAO was created on Zoom after a group of crypto enthusiasts teamed together to gather funds to purchase a first-edition copy of the United States constitution that was being auctioned off by Sotheby’s. Before losing the auction to anti-crypto Citadel CEO Ken Griffin, they raised roughly $45 million.

 

The DAO declared on Tuesday that it was ceasing operations. People began returning PEOPLE tokens to get refunded in Ethereum on Thursday, and the price of the tokens had risen over 200 percent in 24 hours. The PEOPLE tokens that were returned were burned, reducing the supply and driving up the price.

Cardano fell to its lowest price since August on Wednesday after eToro stated it would no longer allow purchases of the cryptocurrency after Christmas owing to “business-related factors in the developing regulatory climate.” MANA and SAND, two Ethereum-based metaverse tokens, reached new all-time highs on the same day.

 

Yesterday, Basic Attention Token (BAT) defied the market slump and grew 10% overnight to set a new all-time high of $1.85. BAT is the native token of the Brave privacy browser, which is a unique blockchain-based way of monetizing users’ attention to online advertising in a system that rewards users, advertisers and content creators for engaging readers.

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