Following an intense backlash from a significant portion of its user base, the popular community is messaging app Discord forced to abandon its plans to integrate with Ethereum based NFTs.
Discord’s founder and CEO, Jason Citron, tweeted probably nothing, including a screenshot of the app’s user settings page. It showed an ETH logo and the option to connect digital wallets like MetaMask and Wallet Connect. Because of the amount of energy required to mine cryptocurrencies, cryptocurrency skeptics claimed that NFTs are a Ponzi scheme harmful to the environment.
BTC will soon head to $75K
In the cryptocurrency market, volatility is the name of the game. The Nov. 11 evening sell-off in the price of Bitcoin (BTC) is a reminder that sharp whipsaws frequently follow new all-time highs to underlying support levels.
Bitcoin’s price managed to claw its way back up to 65,000 after falling to a low near 62,800. Bulls are now attempting to consolidate and regroup in preparation for another push higher. The sight of a $7,000 drop-in BTC may have surprised some. Given Bitcoin’s past performance, the price action has been predictable and transitory over the last few days.
The Bitcoin price, along with its 20-day moving average (20-MA), a run-up in BTC price, is often followed by a pullback that touches or briefly dips below the 20-MA before heading higher again.
Evergrande and inflation have an impact on the market
Jean-Marc Bonnefous provided insight into the macro factors at work. He pointed out that there has been much discussion about the effects of the Evergrande story on the recent market sell-off.
Evergrande news, according to Bonnefos, is to equities what Elon Musk tweets are to cryptos in terms of being somewhat manipulated news to move markets. The crypto markets appear to be overreacting to the headlines, according to Bonnefos. Hence the recent dip is probably more of a technical consolidation after the sharp rally of the last few days.
And it’s not just negative headlines about Evergrande and influencer tweets that influence crypto market price action. According to Bonnefos, the recent 6.2 percent increase in the U.S. Consumer Price Index indicates a significant factor influencing global financial markets and the price of Bitcoin.
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