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Weekly Crypto Market Recap 6

By RAIN EDITORIAL TEAM - May 09, 7:00 PM

Last week was not the best of all time for the crypto market, as prices of almost all assets experienced a downtrend. Despite the drop, fundamentals remain strong, and long-term investors have nothing to fear even in such volatile times.

General Market Performance

As mentioned before, the past seven days were quite negative in terms of price development for most crypto assets. The reasons behind the dip could include concerns about a slowing economy, the ongoing Russian-Ukrainian conflict, or simply the usual pre-summer sell-off that is simply due to the great weather arriving to many investors’ areas. In any case, investors who are in it for the long term gains should stay resilient during such times, and even consider diversifying their portfolios with crypto assets that can be bought at lower rates than a few months before. 

Bitcoin dropped 25% over the week

Bitcoin dipped as much as 25% to around $27,000, which is among the biggest drops since January 21, 2022. This is most likely due to investor fears about the Fed increasing interest rates, but other factors can also have a role in the downtrend.

Bitcoin halving countdown is halfway through

On a more positive note, the Bitcoin halving countdown is at midway which means that we only have to wait around two more years until the biggest cryptocurrency’s block reward decreases by 50%. Bitcoin halving is a phenomenon that happens around every four years, reducing the amount of BTC credited to miners after validating a block by 50%. During the next halving in 2024, the reward will decrease from 6.25 BTC to 3.125 BTC, which will likely have a positive effect on Bitcoin’s price.

Gucci accepts payment in Crypto in some US stores 

The flagship Gucci stores in Los Angeles and New York will now accept payment in crypto, and the company has open plans about implementing the option on a global scale as the everyday adoption of crypto continues. Gucci is among the first luxury brands that allow their customers to pay in crypto for goods.

Instagram will bring NFTs to the platform

Meta CEO Mark Zuckerberg confirmed that the company is testing NFTs on the platform, with “similar functionality” coming soon to Facebook. A small group of U.S. users will be able to display NFTs on their feed, stories, and in messages. There are no fees planned in association with posting or sharing a digital collectible on Instagram.

Uzbekistan legalizes solar-powered crypto mining

Uzbekistan will allow companies to mine cryptocurrencies using solar energy. Bitcoin’s energy consumption is often condemned by the public, but electricity coming from such renewable sources can change the masses’ negative opinion. The new rules will likely mean beneficial tax positions too for all crypto operations by domestic and foreign companies. 

Rain is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider. We are headquartered in the Kingdom of Bahrain

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