New Delhi: Bitcoin price fell back below $30,000 after a modest rally on Thursday. Bitcoin has floated through $30,000 over the past few days as the crypto and equity markets struggled to recover from multiple losses over the past few weeks.

This price decline comes as global financial markets have entered bearish territory for the first time since the start of 2020. There are many factors contributing to the Bitcoin price drop.

Some include geopolitical crises, rising inflation, and changing US monetary policy. These core factors have continued to generate additional short-term volatility in stock and crypto markets around the world.



Bitcoin’s 2022 high so far has been in the early days of January, when its price hit nearly $48,000 on January 2. So far, it has remained above its late January low point below $34,000. It was the lowest price it had reached in the previous six months.

Since Bitcoin’s all-time high in November 2021 of $68,000, Bitcoin has lost nearly 40% of its value.

Given the price volatility history of Bitcoin and other cryptocurrencies, the rise does not guarantee a long-term reversal. The price of Bitcoin will continue to fluctuate as it is likely to fall back as it continues to climb.

Ben McMillan, CIO at IDX Digital Assets, said that like all other risky assets, crypto prices in 2022 were disproportionately driven by the war in Ukraine, rising inflation and the politics of the Fed. Mcmillan also said that if we watch crypto prices at very attractive prices in the longer term, there could well be a considerable decline in the short term.

Nomura Bank Announces Bitcoin Derivatives
Japanese Nomura Holdings has started providing over-the-counter (OTC) Bitcoin derivatives to its clients. This is the latest move by a conventional financial institution into the cryptocurrency industry. Crypto transactions were the Japanese investment bank’s first digital asset transactions. Many other investment banks around the world have sought to provide their clients with more cryptocurrency-related services. This is mainly due to the strong demand from private clients and institutional investors for access to a rapidly growing sector.

Germany Releases Crypto Tax Guides

The German Federal Ministry of Finance has guided the tax treatment of crypto. Individuals in Germany can now sell bitcoin (BTC) or ether (ETH) tax-free after one year. The German Federal Ministry of Finance guidelines also focus on tax issues in various other crypto-centric activities such as staking, lending, mining, airdrops, and hard forks.

On January 1, 2022, the German government passed a new law aimed at encouraging financial institutions to provide cryptocurrency services. The law required any company providing cryptocurrency services in Germany to obtain a license from BaFin, the German Federal Financial Supervisory Authority.

Since that announcement, significant growth has been seen in the total number of financial institutions providing crypto services in Germany.

In early 2022, Germany’s Commerzbank (CBK) applied for a crypto license. This made Commerzbank the first major financial institution in Germany to embrace crypto.

Dapper Labs raises $725 million

On May 10, 2022, NFT creator Dapper Labs announced that it had secured $725 million in funding for the expansion of its Web3 developer ecosystem. The company’s latest investment round includes participation from Coinfund, Coatue, Andreessen Horowitz (a16z), Greenfield One, Liberty City Ventures, Union Square Ventures, and Digital Currency Group. This investment is the tenth time Dapper Labs has sought venture capital investment since its debut in early 2018.

Top crypto gainers and losers this week as of May 22, 2022, 12:15 p.m.:

Top 5 winners of the week

-Kyber Network Crystal v2 (KNC): 56% more

-KuCoin (KCS) token: 23% more

-Klaytn (KLAY): 18% up

-Kava (KAVA): +17%

-Bora (BORA): +14%

Top 5 losers of the week

-TerraUSD (UST): 71% decline

-The Graph (GRT): 21% decrease

-Helium (HNT): 18% less

-Convex Finance (CVX): 15% decline

-Celo (CELO): 15% deposit

(Note: the analysis only includes the top 100 cryptocurrencies. Source: Coinmarketcap)

(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)