Cryptocurrencies Drop After Rejection Of EU Bitcoin Proposal

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Cryptocurrencies Drop After Rejection Of EU Bitcoin Proposal

JAKARTA – Bitcoin (BTC) has been trading roughly in the last 24 hours, although some analysts expect increased volatility over the next few days.

A proposal that was added to the draft Markets in Crypto Assets (MiCA) framework, drew protests and strong reactions from crypto advocates around the world.

This happened because the proposal required cryptocurrencies such as bitcoin to transition to a more environmentally friendly mechanism, which led to this proposal being rejected in a vote by the European Union (EU) Parliamentary Committee.

The European Union’s rejection of the proposal has sparked mixed crypto market reactions.

Several alternative cryptocurrencies (Altcoins) such as Dogecoin pared previous gains. While Bitcoin experienced lower selling pressure than Altcoins, on Monday.

On Monday, the SP&500 traditional market suffered losses, while gold and oil prices fell. Some traders expect the US Federal Reserve (FED) to recognize soaring energy prices, which could lead to slowing economic growth.

Bitcoin, Ether and Gold Prices

Quoted from the coindesk.com site, the prices of Bitcoin, Ether, and gold taken around 04.00 pm New York City time, Bitcoin traded at the level of 38,835 US dollars and ETH at the level of 2,541 US dollars. The S&P 500 was trading at US$4.173 and gold US$1,955 per troy ounce.

Bitcoin trading volume on major exchanges has decreased since February 19. This shows the caution applied by traders ahead of the FED meeting this week.

Geopolitical uncertainty has also been the cause of the recent symbolization of trading activity, which is reflected in blockchain data. Crypto data firm Glassnode reported in its blog post so far this year demand among bitcoin holders has stabilized.

“There is an impact of global macro uncertainty on investor sentiment, with weaker BTC accumulation occurring as a result,” the company wrote.

Meanwhile, according to some technical indicators, a narrow trading range between US$35k and US$40k could result in much higher volatility over the next two weeks.

Altcoin

Ethereum achieved an important milestone last week, in the anticipated transition to a more eco-friendly consensus mechanism namely proof-of-stake, with 10 million ETH or approximately US$26 billion currently locked into Ethereum 2.0 staking contracts.

Against this backdrop, the new staking protocol, Swell joins the lineup of new projects aimed at helping investors to earn staking rewards for hiding their ether.

Swell raised $3.75 million in a funding round Monday, which was co-led by Framework, IOSG Ventures and Apollo Capital.

Dogecoin briefly jumped as much as 10 percent during Asian trading time on Monday, after Tesla CEO Elon Musk said in a tweet he would not be selling his crypto holdings, including Dogecoin (DOGE).

Dogecoin erased some of its gains, towards the end of New York trading amid a mostly stable crypto market.

While DAO focuses on profiting through the metaverse and games, Merit Circle is partnering with blockbuster game company MetalCore through the purchase of $1 million in in-game assets. Merit Circle’s move to join the world of play-to-earn games bridges the quality gap between traditional games and blockchain games.

Players must rely on many different Non-Fungible Tokens to engage with the world of MetalCore. Items in this game such as war machines, vehicles, land and other equipment are also available in the form of NFT which are traded on the MetalCore market.

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