Bitcoin has once again subverted the expectations of the $100K bulls by dropping 10% this past week. For bitcoin maximalists and for hodlers of defi or meme altcoins, it was a disappointing and downright painful week. But for Metaverse and Play-to-Earn gamers, the week brought new highs as money flowed from the crashing bitcoin into gaming and NFT based tokens.
Bitcoin tumbled below $56K for the first time since late October and liquidated millions worth of both long and short positions because of the volatility. The decline started on Monday, and for the first time in a long time, the market sentiment has turned fearful.
Naturally, this had an impact on the entire cryptocurrency field as most of the coins are also charting double-digit declines. Ethereum is down about 10.7%, BNB, SOL, ADA, and XRP are all down about the same 10%. The total market capitalization has declined to $2699 billion in the past seven days – a substantial drop given that it was above $3 trillion at one point.
However, not all is doom and gloom. Metaverse-related and play-to-earn tokens are popping off. At the time of this writing, Decentraland’s MANA is up 25%, while The Sandbox’s SAND is up 60%. ENJ is also up almost 20%, while WAXP is up almost 60%.
Elsewhere, it appears that the season of high valuations keeps on rolling. Gemini – the cryptocurrency exchange founded by the Winklevoss twins – seems to be planning a $400 million raise, and if successful, that would put the company’s total valuation upwards of $7 billion. DCG also raised $600 million in a debt capital raise. In other words – big money continues to flow in the industry, perhaps giving further notion to the claim that the current downturn might be a good buying opportunity.
It’s still too soon to say whether the Q4 bulls will be rights about rocketing bitcoin prices but for many these downward trends certainly put a damper on speculation that bitcoin will be at $98K by the end of November 2021.
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