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Bitcoin price drops more than 20% to $42,000. What’s going on?

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With the new Covid Omicron variant, the bitcoin price drops more than 20%. Bitcoin, Ethereum, and several other cryptocurrencies face a storm of bearish catalysts. Cryptocurrency prohibitions might also be the cause.

Bitcoin price dropped drastically in the early hours of this Saturday, November 4th, falling more than 20%, coming to trade at US$ 42,000. 

The price of Ethereum plummeted, dropping more than 25%, to around $3,400, and other known cryptocurrencies have also seen their market prices going down. The total market capitalization dropped 16% to $2.2 trillion. 

Top 10 Cryptocurrency Market // Source: CoinMarketCap

On a side note, in early November, the total market capitalization of cryptocurrencies reached $3 trillion for the first time in history.

Cryptocurrencies have been in chaos since the appearance of the Omicron form of the coronavirus. 

The Bitcoin price drops more than 20% What could be the cause?

On November 26th, bitcoin dropped to a seven-week low to trade at $54,000, entering the falling territory, when in October, it passed the $68000 barrier. At the time of the writing of this article, the price recovered, and it’s trading at $47205,98.

image 13 - Crypto DeFinance
Bitcoin price // Source: CoinMarketPrice

Tech stocks also had a bad week, with the Nasdaq index closing the week down about 2.5%. Cryptocurrency and stock prices are typically not closely correlated, however, large stock sales may be causing investors to become more aware of the overall risk and exit cryptocurrency positions.

The World Health Organization (WHO) said on past Friday, November 3rd, that the variant was detected in 38 countries, compared to 23 two days ago, with initial data suggesting that the strain is more contagious than others.

In addition to fears over the omicron variant, rising yields on US Treasuries may be prompting investors to abandon riskier investments in search of safer returns.

The index fell to its lowest level in over seven weeks. The return of the “red tide” to the markets harmed the most cyclical industries, such as retail and tourism. The energy industry was also among those that suffered the most losses as a result of the reduction in the price of an oil barrel.

Fed Chairman Jerome Powell stated on Tuesday that “it is time to remove the temporary end of inflation,” bolstering the notion that interest rates may increase sooner than expected, which penalized equities on both sides of the Atlantic.

Jerome Powell further warned that this new coronavirus variant offers possible economic hazards at a time when US inflation is at its highest level since 1990.

And this could be leading the investors to liquidate their Cryptocurrency positions.

Cryptocurrency prohibitions and regulatory restrictions across the world

image 14 - Crypto DeFinance
Source: Cointelegraph Analytics

Other causes could be the potential for further regulatory restrictions to be weighing on cryptocurrency valuations. 

China has effectively banned cryptocurrency and mining transactions. The conflict between Chinese officials and miners lasted for more than six months. 

China prohibited mining activities in May of this year, forcing these business people to shift their equipment to other countries such as the United States, Kazakhstan, and Russia.

On November 16th, China resumed its war on miners, declaring that Chinese officials would work more to penalize unlawful miners.

“Virtual currency mining is high energy consumption and carbon emissions, and does not play a positive role in industrial development and technological progress.”

Said the Chinese Government.

Despite portraying itself as an ecologically correct and environmentally conscious country, China’s primary energy source is coal combustion, as seen in the quotation below.

Following the departure of miners to other nations such as the United States, bitcoin mining is already proving to be more environmentally friendly.

“The risks arising from the production and trading of virtual currency are becoming increasingly prominent. Its blind and disorderly development has a severe adverse impact on promoting high quality economic and social development, energy conservation and emission reduction.”

said Meng Wei, a spokesperson for National Development and Reform Commission in China.

India is about to introduce legislation, not to ban, but to regulate all cryptocurrencies.  According to the government announcement, the new law will allow for “limited exclusions to promote the underlying cryptocurrency technology and its purposes.”

The Indian Central Bank further stated that they raised “severe concerns regarding macroeconomic and financial stability.”

The regulation is meant to safeguard Indian consumers when a rising number of individuals, many of whom lack financial expertise or information, are making these sorts of transactions and risk losing their entire investment, treating cryptocurrencies as assets.

The United States has recently signed the US spending bill included new taxes for cryptocurrency brokers.

Among these various factors, Bitcoin, Ethereum, and several other cryptocurrencies faced a storm of bearish catalysts.


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Sky is a seasoned cryptocurrency expert with a passion for blockchain technology and digital finance. With years of experience in the crypto industry, he has authored insightful articles on market trends, emerging technologies, and investment strategies. His work has been featured in leading crypto publications, helping both beginners and seasoned investors navigate the complex world of digital assets. Sky is dedicated to providing readers with accurate, up-to-date information to make informed decisions in the rapidly evolving crypto space.

Blockchain

Plume Network Becomes Primary Launch Partner for Paxos’s New USDG0 Stablecoin

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The digital asset industry just reached a major milestone: Plume Network has been selected as the primary launch platform for Paxos’s newest stablecoin, USDG0. The partnership marks a significant step forward for regulated real-world assets (RWAs) on blockchain, connecting institutional-grade finance with the decentralized world.

Why Plume Network Is Becoming a Key Player

Plume Network has carved out a unique place in the blockchain ecosystem by focusing specifically on regulated RWAs. Its selection as the main network for the USDG0 rollout highlights its rising influence in the sector. Alongside Plume, Hyperliquid and Aptos will also support the launch, forming a strong multi-chain foundation for USDG0’s adoption.

For Plume’s ecosystem, this collaboration is transformative. Developers gain access to a secure, compliant stablecoin directly integrated into the network, and users benefit from exposure to U.S. Treasury yield structures—right on-chain. It’s a meaningful step toward closing the gap between traditional finance and decentralized applications.

What Sets USDG0 Apart From Other Stablecoins?

USDG0 is the upgraded, cross-chain extension of Paxos’s existing USDG stablecoin, which already holds a market cap of $997 million. But USDG0 introduces several features that distinguish it in a crowded market:

  • Fully backed by regulated reserves
  • Built for cross-chain interoperability with LayerZero’s OFT standard
  • Structured to offer yield exposure tied to U.S. Treasuries
  • Designed with strict regulatory compliance

LayerZero’s Omnichain Fungible Token (OFT) framework enables USDG0 to move seamlessly across multiple chains while maintaining its backing and oversight—something few stablecoins achieve at this scale.

What This Means for DeFi Builders

With USDG0 integrated directly into Plume Network, developers now have access to reliable, regulated liquidity—a rarity in the DeFi space. This unlocks a wide range of new possibilities:

  • Native liquidity for faster, more predictable transactions
  • Regulatory clarity for teams building compliant applications
  • Yield-bearing stablecoin infrastructure tied to traditional assets
  • Cross-chain reach through LayerZero connectivity

For builders navigating the evolving RWA landscape, Plume Network offers a stable foundation grounded in both compliance and innovation.

Shaping the Future of Regulated Blockchain Assets

The Plume–Paxos partnership reflects a broader movement toward merging regulated financial products with decentralized technology. By pairing real-world asset tokenization with a cross-chain stablecoin, this collaboration sets the stage for more secure, scalable, and institution-friendly DeFi applications.

As global regulations continue to take shape, platforms that balance compliance with decentralization—like Plume Network—are positioned to lead the next wave of blockchain adoption. USDG0’s launch could become a blueprint for how traditional financial instruments migrate onto blockchain networks in the years to come.


Frequently Asked Questions

What does Plume Network specialize in?
Plume Network focuses on regulated real-world assets on blockchain, offering a compliant platform for tokenizing traditional financial instruments.

How is USDG0 different from other stablecoins?
USDG0 is fully reserve-backed, regulated, cross-chain compatible via LayerZero’s OFT standard, and offers yield exposure tied to U.S. Treasuries.

Which networks will host USDG0?
USDG0 will launch primarily on Plume Network, with Hyperliquid and Aptos also supporting deployments.

What advantages does USDG0 provide for DeFi developers?
Developers gain access to regulated stable liquidity, yield opportunities, and seamless cross-chain functionality.

Is USDG0 multi-chain?
Yes. Thanks to LayerZero’s OFT framework, USDG0 can move between multiple blockchains while maintaining regulatory compliance.

What is the market cap of Paxos’s existing USDG stablecoin?
USDG currently has a market capitalization of $997 million.

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Blockchain

XBITMining: How a Fast-Growing Cloud Mining Platform Is Changing the Crypto Market

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The cloud mining platform XBITMining is changing the crypto market, giving new investors a novel way to dip their toes into a profitable market that has historically been hard to break into.

The blockchain depends on miners — a fact so baked into the system that cryptocurrencies automatically adjust the computational power it takes to produce new transaction blocks, thereby ensuring that crypto mining will always remain profitable for someone.

Investors have flocked to crypto mining for years for precisely that reason. That’s changed. New investors now face insurmountable barriers. Without powerful hardware, inexpensive electricity, iron-clad cybersecurity, and constant maintenance, crypto mining stays out of reach for the vast majority of prospective investors.

XBITMining presents a different model. By leasing a slice of the platform’s secure, professionally-managed data centers, new crypto investors can now reap the benefits of a burst-proof bubble.

The XBITMining Cloud, a More Accessible Way to Enter the Crypto Mining Market

XBITMining has, with over 15,000 clients in 67 countries, seen rapid growth in recent years. Their innovative model explains the company’s success. For years, enterprises have found that leasing IT and office equipment — like servers, photocopiers, printers, and computers — is often more affordable than buying it outright. XBITMining brings that same model to crypto mining.

Investing in ASIC rigs is no longer the only way to get started with crypto mining. Investors can lease computational power and take advantage of the same cutting-edge systems that the large corporate mining farms that bring home 95 percent of all global crypto-mining profits have access to.

According to an XBITMining representative: “Our cloud mining platform delivers consistent returns for clients who understand the potential of the crypto market — but neither have the technical skills, nor the expertise, to establish their own operations.”

Ease of use is a primary goal. “We do the hard work of managing data centers, securing consistent uptime, and maintaining security,” the representative explains. Clients, in contrast, simply select their plan, with Hashrates starting at 200-800 TH/s and going all the way up to 80,000-400,000 TH/s with the most powerful plan. From there, they can follow performance in real time with a user-friendly dashboard — and follow their ROI.

Payouts are credited to clients’ secure earnings wallets daily, a model that allows investors to cash out or reinvest their earnings. This radical departure from other cloud mining platforms is one of the drivers of the rapid growth XBITMining has seen; the platform prioritizes transparency and puts clients in charge of their investment goals.

A New Era for Crypto Mining?

The XBITMining cloud mining platform can be seen as a democratization of crypto mining. When Satoshi Nakamoto launched Bitcoin, the anonymous creator designed it to be mined with any CPU. That heyday saw hobbyists and nerds turning unexpected profits, but it wasn’t long before more powerful setups took over.

By the mid-2010s, corporate mining farms had taken over — and hobbyist miners were pushed aside. XBITMining is turning back the clock. It is putting the power back in the hands of individual investors.

Round-the-clock monitoring ensures maximum uptime and security, while cutting-edge hardware makes XBITMining competitive in a landscape dominated by corporations. It is a massive operation, but XBITMining anticipated rapid growth. “Our infrastructure was designed to scale globally and compete with the biggest players in the crypto market,” the company says. “Driving it all? A commitment to delivering consistent results for our clients.”

Visit the official XBITMining.com website to learn more about one of the most exciting platforms in the cryptocurrency market.

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Avalon Labs Enters Global Top Five for Corporate Bitcoin Holdings With 6,997 BTC

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Avalon Labs (AVL), a Bitcoin-focused on-chain financial services company, has moved into the global top five corporate Bitcoin holders after reporting ownership of 6,997 BTC, according to data from BitcoinTreasuries. The milestone places Avalon Labs among the highest-ranking institutions accumulating Bitcoin as part of their treasury reserves.

Significance of Avalon Labs’ Increased Bitcoin Position

Avalon Labs’ rise into the upper tier of corporate Bitcoin holders reflects a growing trend of firms integrating digital assets into long-term balance sheet strategies. The company’s substantial holdings demonstrate increasing institutional acceptance of Bitcoin as part of broader financial planning.

Analysts note several factors that often influence corporate decisions to hold Bitcoin:

  • Long-term value thesis: Companies are increasingly considering Bitcoin as a potential store of value.
  • Strategic positioning: Large allocations can signal a commitment to the digital asset sector and its evolving infrastructure.
  • Market influence: Major corporate holders contribute to broader shifts in sentiment around institutional involvement in cryptocurrency.

Avalon Labs’ position underscores its active role in the expanding digital-asset landscape and its view of Bitcoin as a foundational element of future financial systems.

Why Corporations Are Increasing Bitcoin Exposure

Corporate interest in Bitcoin has risen over recent years, often tied to economic uncertainty, diversification strategies, and growing digital asset adoption. Key motivations include:

  • Inflation considerations: Bitcoin’s capped supply is viewed by some companies as a hedge against monetary expansion.
  • Treasury diversification: Digital assets provide exposure to a distinct asset class outside traditional markets.
  • Technological alignment: Integrating Bitcoin is seen as aligning with broader digital transformation initiatives.
  • Liquidity improvements: As market depth and infrastructure mature, large transactions have become more manageable for institutions.

Avalon Labs’ expanded holdings reflect these factors and strengthen the company’s position within the digital asset ecosystem.

Broader Industry Impact

Avalon Labs’ move may encourage other corporations to reassess their own treasury strategies. Large institutional holdings can contribute to the normalization of Bitcoin in corporate finance and prompt more structured research and risk assessment among firms exploring similar allocations.

Managing significant Bitcoin reserves also requires robust custody, compliance, and risk frameworks. Avalon Labs’ approach suggests confidence in its operational infrastructure and its ability to navigate volatility and regulatory considerations.

What Comes Next

Avalon Labs’ ascent highlights growing corporate participation in digital assets and signals a potential shift in how companies approach treasury management. For firms evaluating similar strategies, industry observers emphasize several considerations:

  • Due diligence: Understanding Bitcoin’s technical and market characteristics remains essential for large allocations.
  • Risk mitigation: Institutions must account for cybersecurity, regulatory developments, and market fluctuations.
  • Long-term perspective: Corporate Bitcoin holdings are typically part of multi-year strategies rather than short-term positioning.

Avalon Labs’ entry into the top five corporate holders marks a notable moment in the intersection of traditional finance and the digital asset sector. The company’s expanding Bitcoin reserves illustrate how institutional engagement continues to evolve as digital assets gain a more prominent role in global financial planning.

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