Bitcoin, ethereum prices drop by 3 per cent

The prices of bitcoin and ethereum have slid down by about 3 per cent with the overall crypto market dropping in value at a similar rate over the last 24 hours.

The leading cryptocurrency is down by nearly 14 per cent compared to its price last week, and is currently valued at about $36,000.

Ethereum is down by about 25 per cent compared to its value a week earlier and is currently priced at $2,400.

Meanwhile, meme coins dogecoin and its spinoff shiba inu are down by over 3 per cent in the last day with the latter dropping in value by over 25 per cent in the last week.

Solana is down by nearly 7 per cent and cardano by a per cent in the last 24 hours.

The chart is still all red with no signs of recovery yet.

Russian President Vladimir Putin has asked government officials to hold talks on the subject of bitcoin and cryptocurrency, as he claims Russia has “certain competitive advantages” when it comes to crypto mining.

In a video conference today, Putin said Russia has a “surplus in electricity and well-trained teams” that could take advantage of a shut down in operations in neighbouring China and Kazakhstan.

The move comes after the country’s central bank revealed a proposal to ban cryptocurrency transactions and mining in cryptocurrency.

The president of El Salvador has responded to calls from the International Monetary Fund to drop bitcoin as legal tender in the country.

Nayib Bukele tweeted a Simpsons gif, with bitcoin and IMF logos superimposed, together with the condescending line, “I see you, IMF. That’s very nice.”

I think it’s safe to say Bukele has no plans to abandon the experiment any time soon.

Bitcoin’s recovery is showing no signs of slowing down, rising above $38,000 after another price surge this morning.

The cryptocurrency is now up more than 15 per cent since the lows it reached at the start of the week, though analysts have warned that trading data suggests there is still fear in the market ahead of today’s meeting of the Federal Open Market Committee (FOMC).

We’ve heard from Marcus Sotiriou, an analyst at the UK based digital asset broker GlobalBlock, who explains what this might mean for bitcoin and the broader crypto market:

The International Monetary Fund (IMF) is once again applying pressure on El Salvador over its decision to adopt bitcoin as a legal form of tender.

In a report issued on Tuesday, IMF directors “stressed that there are large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities”.

It follows a similar warning from the IMF in November, which urged the Central American country to strengthen regulation and supervision over the cryptocurrency.

Elon Musk has said he will eat a Happy Meal on television if McDonald’s follows Tesla’s lead by accepting dogecoin payments.

The world’s richest person made the plea on Twitter, causing an instant surge in the price of the meme-inspired cryptocurrency.

Dogecoin rose from below $0.13 to above $0.14, though remains a long way off the record high it saw last year, when a Musk-fuelled rally briefly pushed it above $0.70.

You can read the full story here.

Bitcoin shows signs of recovery

The price of bitcoin has grown by over 2 per cent in the last 24 hours after plummeting to its lowest in six months.

The leading cryptocurrency is still down by over 14 per cent compared to its value a week earlier, and by more than 50 per cent compared to its November high price of $69,000.

Meanwhile, other leading cryptocurrencies, including ethereum, cardano, and solana are down by 2 to 3 per cent in the last day.

Ethereum is currently valued at $2,400 and is still down by over 25 per cent compared to its value a week earlier.

Memecoins dogecoin and shiba inu are also down compared to their respective values a day earlier.

Dogecoin has dropped in value by about 1.5 per cent in the last day while shiba inu is down by over 5 per cent during this period.

The chart is still all red with marginal signs of recovery.

Bitcoin may have dropped in price by more than 50 per cent since its all-time high in November, but its latest collapse still isn’t as big as previous long-term corrections.

There are four other major corrections since 2013 that have seen bitcoin fall further in price, however it’s too early to say whether this one is over yet.

It’s always tricky to attribute bitcoin’s demise to a single event, however crypto analysts appear to be largely in agreement on what caused the latest sell-off.

While a crackdown in Kazakhstan and fears of a ban in Russia both contributed to the price collapse, the main driver was the plunge in the stock market amid concerns of the US Federal Reserve hiking interest rates this week. We heard from a range of cryptocurrency experts and industry insiders to hear their thoughts on the crash, and where they think the market will go from here.

You can read the full piece here.

As is customary now following a severe price dip, McDonald’s memes are doing the rounds on social media.

The meme became popular following last year’s crash, after a screengrab of a fake tweet from the fast food giant went viral. It stated: “Hey crypto bro’s we got you... Apply below.”

Among those sharing the meme this time around is El Salvador President Nayib Bukele, who went as far as changing his profile picture on Twitter, and prominent market analyst PlanB. Both have predicted big things for bitcoin in 2022, though not necessarily in this direction.