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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.

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Vitalik Buterin Offloads STRAYDOG as Team Initiates Buybacks and Strategic Token Burn Plan

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Ethereum founder Vitalik Buterin sold STRAYDOG tokens over the past twenty four hours according to on chain data. The tokens were originally received via airdrop from community and team nearly four months ago.

The sale occurred near recent price lows during a broader period of market weakness. Similar sales by Buterin in past cycles have often coincided with shifts in market attention rather than extended downside.

Following the transaction STRAYDOG team began purchasing tokens on the open market. The team confirmed that purchased tokens will be allocated toward a future burn.

According to the team two hundred thousand dollars worth of bought STRAYDOG tokens will be burned once the token reaches a ten million dollar market capitalization reducing circulating supply.

Market participants are now watching on chain activity as the project approaches the announced milestone.

The project maintains a fat treasury valued at hundreds of thousand of dollars, enabling the development team to continue conducting ongoing buybacks rather than a one time purchase. The team also stated that it plans to burn $200,000 worth of bought STRAYDOG tokens at every additional $10 million increase in market capitalization, further reducing circulating supply over time.

X – x.com/straydogcoin

Telegram – t.me/StrayDogETH

Website –www.straydogcoin.com

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Marshall Islands Turn to Digital Assets to Expand Financial Access

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The Republic of the Marshall Islands is taking a major step toward digital transformation, piloting a blockchain-based system to distribute universal basic income (UBI). The initiative aims to reduce the nation’s dependence on physical cash and address long-standing financial access issues across its remote island communities.

A move from paper checks to digital wallets
During the latest payout cycle, Marshallese citizens received their UBI in two different ways. Some continued using traditional paper checks issued through the Economic and Natural Resources Authority. Others, however, received funds digitally through Lomalo, a citizen wallet built on the Stellar blockchain.

The digital payments were delivered in USDM1, a government-designed token intended to act as a sovereign financial instrument rather than a typical stablecoin. Unlike most stablecoins—where yield flows to the issuer—USDM1 functions similarly to a government-backed money market asset, generating returns directly for the holder.

This structure is meant to stabilize the token’s value and distance it from the volatility seen in assets such as Bitcoin, while still enabling everyday payments.

A wallet built for mass adoption
Despite improvements in internet connectivity through satellite providers such as Starlink, daily commerce in the Marshall Islands still depends heavily on physical cash. Cash shipments arrive by boat, and delays can lead to temporary shortages, limiting residents’ ability to transact or access money.

Digital delivery through Lomalo is designed to change that. Payments can be sent instantly across the islands without relying on cash deliveries or a fragile physical banking network. The wallet also strips away the typical technical complexity associated with crypto applications. Crypto infrastructure firm Crossmint manages the onboarding process, enabling citizens to use digital funds without understanding private keys or blockchain mechanics.

The broader push toward digital assets also reflects the country’s challenging financial reality. In the years following the 2008 global financial crisis, many foreign banks exited the region over compliance and risk concerns. That exodus left the Marshall Islands with just one correspondent banking partner—creating a vulnerability for everything from international transfers to local business operations.

USDM1 offers an alternative pathway by reducing reliance on traditional bank channels and giving residents an additional method to store and access funds.

Part of a wider global strategy
The Marshall Islands pilot is one component of a larger effort led by the Stellar Development Fund to expand financial access in underserved regions. The organization has allocated several million dollars to support the USDM1 initiative.

The approach builds on previous projects that facilitated humanitarian payments, including salary distributions for healthcare workers in conflict zones and cash-assistance programs run with NGOs. Lessons learned from partnerships with the Ukrainian government and international aid groups helped refine the system now being tested in the Marshall Islands.

Across all these programs, the core goal remains the same: ensuring individuals—not intermediaries—have direct control over their digital assets, while improving access to reliable financial infrastructure.

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Why Is Midnight (NIGHT) Price Pumping Hard?

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The Midnight (NIGHT) price has surged to the top of the market leaderboard, jumping roughly 30% in a single session and trading around $0.0866 at the time of writing. The rally isn’t happening in isolation. Trading volume has spiked nearly 70%, signaling genuine market participation rather than a temporary liquidity anomaly. As a result, the NIGHT token has become one of the day’s strongest performers, attracting attention both inside and beyond Cardano’s ecosystem.

A mix of partnership speculation, regulatory narratives, and a clean technical breakout is driving the current Midnight price momentum and helping push the asset into a new phase of price discovery.

A key catalyst behind the Midnight price pump is rising speculation about a potential stablecoin partnership. Midnight Foundation President Fahmi Syed confirmed that the team has received a legal contract from a prospective partner—an indication that talks have moved past preliminary stages. For traders, this was enough to begin pricing in the possibility of compliant stablecoin infrastructure built directly on Midnight’s privacy-focused network.

Given how central stablecoins are to liquidity, payments, and on-chain activity, the idea of a regulated privacy chain supporting compliant stablecoin integrations has fueled bullish sentiment around the NIGHT token.

Regulatory dynamics in the EU are adding further weight to the rally. New proposals targeting anonymous transactions and digital identity verification have renewed interest in privacy solutions built for regulated environments. Midnight’s selective disclosure model—which enables verification without exposing full personal data—positions it as a potential middle ground between transparent blockchains and traditional privacy coins.

While regulatory frameworks remain in flux, the environment favors projects that can offer compliance-ready privacy. For now, the Midnight crypto narrative fits that trend.

The surge in NIGHT trading activity shows the rally is not merely social-media driven. At one point, Midnight ranked among the top five assets globally by trading volume, a signal that demand is broad instead of concentrated in a single community. Sustaining high volume will be essential if the recent price move is to evolve into a longer-term trend. Sharp increases without follow-through often lead to quick reversals or sideways consolidation.

On the technical front, the Midnight price has delivered a clean breakout. On the 1-hour chart, NIGHT pushed above its long-standing consolidation band between $0.060 and $0.065, a range that repeatedly capped upside attempts. The breakout happened on rising volume—a strong confirmation signal—and the chart has since produced a series of higher highs and higher lows.

Analytics platform TapTools described the current phase as “entering price discovery,” reflecting the lack of historical resistance overhead. With no clear prior supply zones, movement is now primarily driven by momentum, trader positioning, and incoming news flows.

From a structural perspective, the key support level to watch is the former breakout zone around $0.070. As long as the Midnight price stays above that threshold, short-term momentum remains strongly bullish. Losing that level could open the door to consolidation or a retest of lower support, especially if trading volume begins to fade.

In the short term, upside continuation for the NIGHT token depends heavily on whether volume remains elevated and whether the rumored partnership developments gain clarity. If the Midnight Foundation confirms progress on compliant stablecoin integrations—or offers new ecosystem updates—traders may continue to position aggressively around the narrative.

For now, the Midnight (NIGHT) price pump reflects a convergence of strong catalysts: a promising potential partnership, favorable regulatory positioning for privacy technologies, and a decisive technical breakout. Together, these forces explain why Midnight is suddenly capturing market attention and why many traders are watching closely to see whether this surge marks the beginning of a larger trend.

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