Crypto prices continue to rise after falling dramatically in January. Bitcoin is back above the $40,000 mark, with Ethereum back above $3,000 — both stayed above those benchmarks throughout the weekend.
Many experts expected as much. “As for the Bitcoin price drop, it has been pretty cyclical. It’ll be back up,” Chris Chen, CFP of Insight Financial Strategists in Newton, Massachusetts, recently told NextAdvisor. Wendy O, crypto investor and popular TikToker, shared similar thoughts, saying crypto volatility is simply “par for the course.”
“Anytime you have a really volatile, upward movement, you should also be prepared for a very volatile, downward movement,” O recently told NextAdvisor.
The week of January 23 was the worst growth in the crypto market in a few months. Bitcoin fell below $ 34,000 in January, compared to a record high of $ 69,000 in November. Ethereum also fell below $ 2,200 in January. After the stock market experienced its worst week in almost two years and the long-awaited report of the Federal Reserve on the potential of government-issued digital currencies was released, a significant price drop occurred. The crypto market cap fell below $2 trillion amid the selloff, according to CoinMarketCap data.
Meanwhile, there are proposals in Wyoming and Arizona to accept tax payments in Bitcoin and other cryptocurrencies. Mark Zuckerberg`s crypto project Diem is officially shutting down. And India is planning to launch a digital version of the rupee and tax cryptocurrencies and NFTs.
Below is the latest crypto news investors should know:
• Lawmakers in Wyoming and Arizona have put forward proposals that would allow them to accept tax payments in the form of digital currencies. The Arizona proposal would have the state recognize Bitcoin as legal tender. Wyoming’s proposal would apply only to sales and use taxes, but wouldn’t be limited to a specific cryptocurrency. The new proposals demonstrate further signs that cryptocurrency is pushing toward more mainstream acceptance.
• Mark Zuckerberg’s plan to launch stablecoin project Diem has hit a dead end. Meta, formerly branded as Facebook, announced this week it sold its assets and intellectual property to crypto bank Silvergate Capital. The bank paid $182 million for the project, according to a press release. Though Meta is no longer involved in the project, Diem CEO Stuart Levey said in a press release he has “confidence in Silvergate’s ability to take Diem’s technology forward.” In the press release, Silvergate CEO Alan Lane said they plan to launch a stablecoin by 2022.
Bitcoin is the biggest cryptographic money by market cap, and a decent sign of the crypto market by and large, since different coins like Ethereum (and more modest altcoins) will quite often pursue its directions. Despite the fact that Bitcoin as of late set another new unsurpassed high, it was a normal increase for the crypto, which is infamous for its instability. This isn’t to imply that financial backers should trifle with swings in one or the other heading, and therefore contributing specialists suggest not making any significant venture changes in light of these ordinary variances.
Cryptographic money is still exceptionally new, and everything from advancement to guideline can have outsize effect for financial backers. This is the way you can contribute adroitly, no matter what’s making news or Bitcoin’s value swings.