Another week of wild volatility has hit the cryptocurrency market, as China’s latest sanctions have clashed with rapid adoption to stimulate the market’s big swing.
First, Chinese developer Evergrand sent crypto sliding last Monday amid fears of a financial collapse, before Twitter added bitcoin tipping before the market turned around. El Salvador’s President Buchel then bought the dive, only to be deleted on Friday after Chinese authorities announced another crypto crackdown.
When the dust settled, Bitcoin and Etherium both sat slightly higher with 2% and 5% weekly gains, respectively. But DFI tokens have enjoyed more wins so more Chinese users may be forced into the DFI desert. Exchange protocol Uniswap grew 23%, while up-and-coming platforms Tezos and Cardano are celebrating 25% and 8% gains.
This week’s highlights
- China’s sanctions have failed to sink bitcoin
- Twitter accelerates crypto adoption
- eToro has launched the DeFi portfolio
China’s sanctions have failed to sink bitcoin
Digital asset traders were left in the lurch on Friday as Chinese authorities announced another crypto crackdown.
The Chinese central bank said in a statement that all crypto-related activities are now illegal, including cryptocurrency and fiat currency and exchange services between cryptocurrencies.
Bitcoin dropped the news, but soon returned with a wave of optimism about the possibility of adoption elsewhere. Weighing on Twitter, U.S. Senator Pat Tommy He said China’s authoritarian campaign on crypto was “a great opportunity for the United States” which is “arguably the most exciting innovation in terms of money in decades”.
Twitter accelerates crypto adoption
By enabling bitcoin tipping, Twitter has taken another step closer to taking crypto to the full mainstream and unveiled plans to introduce the NFT authentication feature.
Tipping, which is currently only available on iOS, allows anyone using the Bitcoin Lightning Network to receive grants directly from profile visitors. NFT authentication, on the other hand, is expected to allow users to attach their wallets to display their NFT collections.
In addition to Reddit’s Moon Token in Ethereum, and Facebook’s ongoing Dime project, crypto now seems to be a permanent feature of social media. This could lead to the development of an aspiration for crypto assets over the next few years to lead the otherwise interested social media denizens.
eToro has launched DeFiPortfolio
The DFI revolution has begun, and the glittering pace of innovation is making it difficult for even the most well-known investors to keep up.
eToro is now offering easy ways to stay ahead of the increasingly decentralized money movement. DefiPortFolio brings together top decentralized finance projects, exposing you to every corner of the ecosystem – from Uniswap to Yarn.
Learn more about Etoro’s newly launched Defiportfolio.
The week ahead
Towards the end of September, analysts including Mike Novograts of Galaxy Digital are expecting a fourth quarter.
In October, the biggest upcoming price catalyst could be the approval of the Bitcoin ETF. Bloomberg analyst Eric Balchunas gave it a 75% chance.
On the bearish side, Washington now has crypto firmly in its regulatory crosshairs. Jake Chervinsky, The compound’s crypto lawyer, expects enforcement activity from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the next two weeks as agencies seek to boost performance before the end of the fiscal year.
Image by Gerd Altmann from Pixabay