Crypto Market Overview December 07th | Dex-Trade
Crypto Market Overview – December 07th, 2021
BTC Goes Down — El Salvador Opens Shopping Season
Having become the first country to legalize Bitcoin as a legal tender, El Salvador seems to have begun to behave like a good trader and does not miss a single opportunity to buy a tasty digital asset in the red zone. Over the past weekend, BTC has fallen in price since the November ATH by an impressive $20,000, after which the leadership of El Salvador decided to purchase 150 coins to replenish the budget. On this occasion, the country's president, Naib Bukele, tweeted that the purchase was made at a price of $48,670, for a total purchase of $ 7.3 million. However, not all residents of the country and financial experts are delighted with Bukele's actions. El Salvador's decision to invest in BTC nationwide has been criticized by both outspoken opponents of the digital financial revolution and crypto evangelicals. In particular, many citizens of El Salvador do not share the optimism of the politician due to the fact that the actual trade in digital markets takes place at the expense of taxpayers' money. And even the president's statements that the BTC bought by the country so far remained profitable are in no way able to calm down the outraged crowd.
The "Final" Version of The ETH 2.0 Roadmap from Vitalik Buterin
Ethereum co-founder, Vitalik Buterin, spoke about how he sees a “plausible roadmap” for the launch of ETH 2.0, the key parameter of which will be increased scalability while adhering to high standards of information verification and censorship resistance. In a recent blog post titled “Endgame,” Buterin conducted a thought experiment showing how a medium-to-large blockchain with a very high frequency of large blocks and thousands of transactions per second can still be considered fairly confidential and censorship-resistant. The obvious compromise, according to the businessman, is the centralization of block production. Moreover, Buterin's experiment presented in the post does not solve this problem, but still provides a roadmap for such a solution. According to his calculations, block production will remain centralized even with the implementation of the so-called "roll-up" — second-level solutions that execute transactions outside the main Ethereum chain. Multi-tier blockchain deployments and increased scalability are designed to solve the main task that the project sets for itself — the transition of the network to the proof of stake protocol, which will make ETH a deflationary asset.
Bitcoins’ Fear and Greed Index Hits 5-month Low
The Fear and Greed Index, which describes the mood of crypto-gold owners, reached its maximum level of fear after the asset price fell by $16,000 in less than 24 hours, which became a record collapse of the cryptocurrency since June this year. The index works as an indicator of momentary investor sentiment in relation to BTC. It monitors several factors, including asset volatility, trading volume, social media comments, polls, and others, to provide a result from 0 (extreme fear) to 100 (extreme greed). The extreme point of the fall of the index came at a time when Bitcoin was worth about $42,000. At that moment, the instrument's indicator was 16, which means "extreme fear". The last time the index below 16 was recorded on July 21. Then the value of BTC fell below $30,000. One of the reasons for the current fall in the price of digital gold could be a new COVID-19 strain called Omicron, which was found in South Africa and caused significant damage to all financial markets. By the way, according to the analytical company CryptoQuant, the events on the network before the fall of Bitcoin could have been foreseen. One of the main signals was that the volume of BTC traded on exchanges rose sharply in the hours before the crash.