Cryptos Slide Unabated Amidst Taxability And Mining Woes
Global cryptocurrency markets continued to slide amidst panic over the implications of the U.S. Infrastructure Bill on taxation and reporting of digital asset transactions. China’s warnings on cryptocurrency mining had already dampened the sentiment.
President Biden had on November 15 signed the Bill that contains significant provisions impacting reporting and taxability of digital asset transactions that would be effective form January 2024.
China recently warned its state-owned enterprises to stop cryptocurrency mining and also threatened to increase electricity rates for companies that continue to defy the ban.
Overall market capitalization has shed 1.53 percent, whereas Bitcoin (BTC) has lost 1.09 percent. Of the 100 top-ranked cryptocurrencies, only 23 have improved in prices in the past 24 hours.
Among the top-15 crypto coins, 12th ranked Avalanche (AVAX) is the best performer with overnight and weekly gains of over 16 percent each.
AVAX, the topper in the DeFi category, has surged in the backdrop of Valkyrie Investments announcing a $100 million DeFi fund across blockchains like Avalanche and Solana. The “On-Chain DeFi fund”, planned to go live on November 22 is eyeing besides the upside, yield gains from lending, liquidity pools, farming and staking in the DeFi ecosystem. Deloitte, a “‘big-four” accounting firm also recently announced a strategic alliance with Avalanche Blockchain for its Federal Emergency Management Agency assignment.
Among the top-15 crypto tokens, simultaneous overnight and weekly price gains are noticed only in 19th ranked Crypto.com Coin and 38th ranked Decentraland (MANA).
The Crypto.com Exchange has recently added the leveraged pair CRO/USDC to margin trading. Metaverse token Decentraland (MANA) is witnessing buying interest amidst the tiny island nation of Barbados announcing the setting up of a virtual embassy in Decentraland, the Ethereum-based virtual reality platform.
In the wider crypto space, 57th ranked The Sandbox (SAND) has made an overnight gain of close to 19 percent and weekly gain of more than 35 percent. SAND touched an all-time-high of $3.61 on Tuesday after the announcement of a highly anticipated play-to-earn metaverse event.
In the same category, 83rd ranked WAX(WAXP), a purpose-built blockchain, designed to make e-commerce transactions faster, simpler and safer, is showing gains of more than 64 percent over a seven-day horizon.
The surge in prices of MANA, SAND and WAXP has contributed to the market capitalization surge by 5.92 percent in Metaverse, 7.88 percent in Play-to-Earn and 7.13 percent in Gaming categories.
The VanEck ETF Trust VanEck Bitcoin (XBTF) that debuted on November 16 is currently trading in pre-market at $59.84, up $0.11 or 0.18 percent over the first day’s close of $59.73.
The Global X Blockchain & Bitcoin Strategy ETF (BITS) that also debuted on November 16 is currently trading in pre-market at $28.99, up $0.79 or 2.80 percent over the first day’s close of $28.19.
Meanwhile San Francisco-based Paradigm One has announced a new $2.5 billion venture capital fund aimed at the crypto industry.
The greatest takeaway from the recurring episodes of extreme crypto volatility is that pursuing digital assets just for speculative gains can only be a short-lived proposition. Crypto price volatility cannot be an end in itself, rather, it is at best a defining feature of the bumpy integration of smart technologies to today’s realities.
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