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Crypto markets plunge as $1.2T infrastructure bill takes off

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  • Crypto markets came tumbling after days of impressive gains.
  • It isn’t clear what caused the crash, but it coincides with the signing of the infrastructure bill giving birth to raised speculations.

Crypto markets have plunged in the last 24 hours. It wasn’t immediately clear what had caused the fall. But speculation is rife as the nosedive coincided with the signing of the infrastructure bill. 

President Joe Biden put pen to paper yesterday, turning the $1.2 trillion bill into law. Some analysts have suggested that the law will impact the crypto markets sector.

At press time, more than 155 thousand traders had liquidated their positions in the last 24 hours. That’s according to statistics from Coinglass.

The crypto information site placed the value of the most significant single liquidation order at $8.6 million. The said order happened on the Bitmex exchange and affected the XBTUSD pair.

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Coinglass added that 88 percent of the liquidation orders were on long contracts. The total market liquidation on high long and short contracts stood at about $591 million.

Five exchanges with the most liquidation

Binance led in the top five exchanges that experienced the most liquidation. It recorded 33 percent of the total market figures, which is $196 million, of which about 92 percent were long positions.

In the second spot was the Okex exchange. Here, traders liquidated more than $150 million in crypto funds, representing 25 percent of the cashed-in contracts. Of these, 95 percent were long-term contracts.

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FTX came in at third position with 19 percent of the terminated contracts. These amounted to $114 million, where 76 percent of the agreements were long.

Bybit and Bitmex round up the quintet. The former witnessed a movement of over $48 million, amounting to eight percent of all liquidated funds. Also, 88 percent of those liquidations were on long contracts.

On the other hand, Bitmex saw a movement of about $31 million. Ninety-five percent of these affected long-term agreements. Bitmex’s figure accounted for five percent of the market total.

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Infrastructure Bill and crypto markets

The infrastructure bill, now law, contains proposals on how to spur the American economy. It has split opinions within the country. 

Proponents have hailed it as the key to unlocking America’s economy. And president Biden echoed that much in the signing ceremony. He said its adoption signified America was moving again and that American lives would get better.

But the law has its fair share of critics. Among those unhappy with some of its provisions are crypto enthusiasts. They have expressed reservations about clauses they feel will negatively impact crypto markets.

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A section of the new law mandates crypto exchanges to notify the IRS of transactions exceeding $10,000. That means that the transactions qualify for capital gains tax. This requirement is among the things that have riled the crypto community.

Crypto purists see this as going against the true intention of digital assets. They say it defeats the decentralization logic. Moreover, it’s an infringement on their privacy.

Consequently, they’ve been pushing for the law’s amendment. Their efforts have gained the support of prominent personalities. Among these are Twitter’s Jack Dorsey and Coinbase‘s Brian Armstrong.

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Pro crypto legislator Cynthia Lummis is among those fronting the amendment. The Wyoming senator insists that cryptos are here to stay. 

She adds that certain decisions taken now will have far-reaching effects in the future. To her, legislation shouldn’t be stifling crypto markets. Instead, it should be encouraging their growth.

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Kimbal Musk, Elon Musk’s brother launches decentralized philanthropy platform

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  • Kimbal Musk launch decentralized philantrophy platform.
  • Says he launched platform after learning a lot from Web 3.
  • Crypto continues to integrate with philanthropy on many fronts.

Kimbal Musk, brother to the world’s richest man, Elon Musk, has announced the launch of a “Giving DAO.” He calls it an experiment in “decentralized philanthropy,” (Big Green DAO)

In a tweet he used to announce the DAO launch, Musk said he is deciding to launch the decentralized philanthropy after learning a lot from Web 3. During an interview, he said that one of the goals of the charity is to overhaul the philanthropy industry with the use of blockchain-based tooling – a sector he believes is plagued by inefficiencies.

“Wow, Web 3 has been teaching me a lot. I’ve decided to run an experiment to decentralize philanthropy. This Giving Tuesday, I’m launching the first Giving DAO,” Musk tweeted.

It is safe to say, like Elon, Kimbal Musk is also fascinated by cryptocurrencies and its potential. He called for constructive criticism on his decentralized philanthropy project.

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Who is Kimbal Musk?

Kimbal is Elon Musk’s younger brother and a restaurateur, chef, and entrepreneur. He owns The Kitchen Restaurant Group, a nest of “community” restaurant concepts located in Colorado, Chicago, Cleveland, Memphis, and Indianapolis. He is also a board member on Elon’s electric vehicle company, Tesla.

So far, his crypto foray has generated positive feedback on Twitter. “This sounds exciting! The true power of crypto and the blockchain to disrupt philanthropy is yet to be tapped, so it’s great to see you pioneering in this regard,” said one Floki Inu account.

Crypto continues to bond with charity

More and more people change the narrative of crypto being used for illegals by bad actors.

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Musk is not the first to integrate the Web 3 and crypto world with philanthropy and charity.

Months back, Médecins Sans Frontièrs (MSF) Doctors Without Borders—received $3.5 million worth of Ethereum from an NFT sale. “This game-changing crypto donation comes at a time where the COVID-19 emergency has compounded the already urgent medical needs of people around the world,” said Jennifer Tierney, MSF Australia’s executive director at the time.

A group of hackers also donated proceeds of their ransomware attacks to charities and NGOs.

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The giving block, a crypto charity organization, has been making giant strides providing leading solutions for nonprofits to accept crypto and a platform for donors to give cryptocurrency to their favorite causes. The Giving Block opens new revenue streams for charitable organizations while reducing the crypto tax burden for donors.

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El Salvador’s President Asks the Fed to Stop Printing Money

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El Salvador’s pro-crypto president commented on a report on the U.S. Fed’s response to escalating economic and financial woes.

On Dec. 1, the outspoken Nayib Bukele responded to a Bloomberg report detailing Federal Reserve chair Jerome Powell’s comments on inflation. Interestingly, El Salvador’s president asked the Fed chief to stop printing so much money out of thin air.

Inflation a Growing Concern

A fresh round of economic anguish has been ignited by last week’s discovery of the new highly-transmissible Covid-19 variant named Omicron by the WHO.

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On Nov. 30, Bloomberg reported on the Fed chair’s comments before the Senate Banking Committee this week. Both Democrats and Republicans expressed concerns about high prices and inflation, it added. The central bank chair retired the word “transitory” to describe high inflation that remains a persistent issue in the U.S.

He added that the Fed should start to wrap up its bond purchasing scheme earlier than the scheduled mid-2022 target.

The word used was “tapering,” which refers to a gradual slowing down of purchases of securities and bonds. The central bank has been effectively printing money to buy bonds with the aim of pushing down interest rates which are currently at 0.25%.

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Lower interest rates mean more borrowing, which stimulates the economy and spending. However, money printing increases inflation and gradually erodes the value of the currency over time, hence Bukele’s comments today.

According to the Federal Reserve Bank of St. Louis Economic Research (FRED), the five-year breakeven inflation rate surged to over 3% in November – its highest level for more than two decades. As a result, the consumer price index for all urban consumers (Core CPI) – which measures the average cost of goods less food and energy – is also at an all-time high.

The figures are a clear indication that the situation is not “transitory” despite what the Fed claims. The latest Omicron strain could exacerbate America’s economic woes even further if it runs rampant and more lockdowns are enforced.

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El Salvador Gains

Naturally, store of value assets that offer a hedge against the greenback and inflation are going strong. As reported by CryptoPotato, Nayib Bukele bought the dip adding 100 BTC to El Salvador’s treasury on Nov. 27.

It has worked out very well for the Latin American nation so far, despite a few protests. A tracking feed that measures the value of the $30 BTC airdrop Bukele gave citizens to spur adoption back in September is reporting a current profit of almost 15% in dollar terms.

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Facebook’s Head of Crypto Quits Weeks After Meta Rebranding

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Facebook, now known as Meta, has only begun its development, post the commencement of the company’s rebranding. However, shockingly, one of the core team members, i.e., the head executive of the cryptocurrency department, David Marcus has announced his departure from the company by the end of this month.

Marcus took to Twitter yesterday, unveiling the end of his seven-year long tenure at Meta. The market is raging with speculations that Marcus’ exit is because of Meta’s Hit-and-Miss, to launch its own cryptocurrency for cross border online payments via Facebook products.

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Did Crypto Executive Quit in lieu of Failure to Launch Native Crypto?

After serving as PayPal’s President, Marcus joined Meta in 2014. He worked at Meta’s popular online messaging application, Messenger, and eventually moved on to the financial department of the company. Under Marcus’ leadership, Meta announced two cryptocurrencies one after another. Both, the Libra blockchain currency and the Calibra digital wallet were expected to go live in the year 2020. However, neither succeeded in lieu of global backlash from policymakers and regulators. At present, Meta’s digital currency Diem, is run by an independent entity, separate from its digital wallet project, Novi. Furthermore, currently serving as the VP of product at Novi, Stephane Kasriel, will now be replacing Marcus as the head of crypto at Meta.

“While there’s still so much to do right on the heels of launching Novi — and I remain as passionate as ever about the need for change in our payments and financial systems — my entrepreneurial DNA has been nudging me for too many mornings in a row to continue ignoring it…I find comfort and confidence in knowing that they will continue to execute our important mission well under @skasriel’s leadership, and I can’t wait to witness this from the outside.”, Marcus tweeted in the thread containing his exit from Meta announcement. 

Towards the end of October, Facebook, the world’s largest social media platform, confirmed rebranding after changing its name to Meta. The name change was in line with the company’s focus on building the world’s first true metaverse.

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