Bitcoin and Ether suffered a major flash crash at the weekend, which selectively dropped the values of the crypto assets by around 20%. Prices have now recovered somewhat, but both cryptos continue to trade well below their pre-weekend levels.
Bitcoin started trading in the $ 57,000 area last week, with some movement during the week but nothing noteworthy. However, that changed on Friday when the crypto asset began to plummet. BTC sank to a low of $ 45,412 in a matter of hours – a drop of nearly 20%.
Ether also fell victim to the flash crash. After ETH traded towards $ 4,700 during the week, trading began Friday from around $ 4,600 to a low of $ 3,652 – a drop of over 20%.
Both crypto assets have since regained some level of stability, with prices recovering slightly. BTC is currently trading at around $ 47,900 while ETH is trading at around $ 4,000.
There has been much speculation as to the cause of the flash crash, with some analysts citing the expiry of leveraged positions. Other evidence, meanwhile, suggests significantly increased activity with investors moving crypto assets from wallets to exchanges – making the response to price movements steeper.
However, the broader background of the investment market’s concerns about Omicron also appears to play a role.
Bitcoin Spot ETF launches in Canada
Big asset manager Fidelity Investments has a Bitcoin spot ETF in Canada.
The ETF – called Fidelity Advantage Bitcoin ETF invests directly in Bitcoin or via derivative instruments. At least 98% of the ETF’s holdings are stored in cold wallets.
The fund is listed on the Toronto Stock Exchange under the ticker FBTC. The Fund will charge a 0.4% management fee to investors whose clients have the option to invest in Canadian or US dollars.
Canada is a popular destination for crypto ETFs, with more than 20 available for Canadian investors. However, Fidelity’s offering is unique among crypto ETFs in that it offers physical holdings of Bitcoin rather than trading futures.
MercadoLibre accepts crypto assets
The large Latin American online marketplace MercadoLibre now enables customers in Brazil to exchange products for crypto assets and pay for them.
The company has announced that users in Brazil will be able to buy, hold and sell Bitcoin, Ether, and a dollar-based stablecoin, Pax Dollar.
The combination of two large crypto assets and a stablecoin on MercadoPago, MercadoLibre’s payment platform, will enable customers to use their crypto assets to perform transactions for products in fiat currency.
MercadoPago is authorized by the Brazilian central bank, which makes it easier for the company to start its crypto operations there. But MercadoLibre generally operates in many Central and South American countries, suggesting a potential customer base for new crypto payments in the millions as it expands its offering.
Square will be renamed following the departure of Dorsey Twitter
Payment company Square has announced it will be renamed “Block” days after its CEO Jack Dorsey stepped down as head of Twitter.
The company said in its announcement that the new name has many associations, including the use of blockchain technology in some of its projects.
Square Crypto, a separate initiative from the company to promote the use of Bitcoin, is also changing its name to Spiral.
The Square brand won’t go away, however – Square remains the name of the company’s vendor business, which is part of a stable brand that now includes Cash App, TIDAL, and TBD54566975.
Jack Dorsey announced his sudden departure from Twitter last week, with many speculating that he would focus more on crypto and blockchain projects, with his now-renamed Block at the helm.
Meta-crypto-head leaves the company
The head of Meta’s (formerly Facebook) crypto arm is leaving the company as the stablecoin Diem launch remains in doubt.
David Marcus announced that he is leaving the company after seven years after working on Meta’s financial offering since May 2018, when the company’s Libra crypto project was first announced.
The project later turned into a payment wallet called Novi with the accompanying crypto asset called Diem. The crypto wallet has since been launched, but Diem’s introduction remains elusive.
Meta was faced with significant hurdles when introducing its crypto products. Commenting on the exit, Meta boss Mark Zuckerberg commented on Marcus’ post: “Without your leadership, we wouldn’t have taken such a big swing at Diem, and I’m grateful that you made Meta a place where we make these big bets . “.”
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