Major cryptoassets such as bitcoin (BITCOMP) and ethereum (ETH-X) are down heavily in the last week, on the back of major market distress. 

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Bitcoin began the week close to $21,000 but as the market digested major news events, the price was sent below $15,600 on the eToro platform - its lowest level since November 2020. The price has stabilized somewhat over the weekend, settling above $16,000 and now trading around $16,400. 

Ether meanwhile saw a similar challenge to its price, beginning the week close to $1,600 before plunging to below $1,100. The price has since steadied, holding around $1,200 over the weekend. 

Negative market environment weighs on bitcoin

The current negative market environment has weighed heavily on most cryptos, but with some specific factors now affecting bitcoin as holders look to protect their positions from market volatility. 

The fall in price levels is remarkably similar to the 2018 bear market, with bitcoin falling to fresh lows almost exactly a year to the day since it reached a new ATH. Positive inflation data has stabilized the price somewhat but lagged the bounce seen in equities. 

Elsewhere, JPMorgan has made a fresh price prediction on the world’s largest cryptoasset, saying it could fall by another 25% - pushing the price as low as $13,000, drawing comparisons with the previous market tumble in May with the collapse of terra.

Bitcoin energy usage spikes - report

A new global bitcoin mining report from the Bitcoin Mining Council has shown the cryptoasset’s energy usage has spiked in the past year. The report says bitcoin mining energy usage has risen 41% but efficiency has increased by around 23%, particularly thanks to growing use of green energy sources. 

The use of energy by bitcoin miners to validate blocks has been much criticized in recent months, particularly with the onset of The Merge of the Ethereum network, which purports to slash energy consumption by over 99%. 

But the report argues that Bitcoin still only uses around 0.16% of the globe’s energy resources, emitting just 0.1% of carbon emissions - calling that a “negligible” amount. While that might be the case, the network continues to draw criticism, and this is now one of the clear dividing lines between it and its biggest competitor. 

FIFA launches blockchain games ahead of World Cup

World football governing council FIFA has launched a set of four blockchain-based games ahead of the men’s football World Cup, which kicks off on Sunday. The launch includes an AI game, a metaverse focused game called Uplandme, based on the already extant Upland metaverse, and two others.

eSports is one of the fastest growing tech sectors in the world, with players and games now commanding large audiences and big fees. Although these four FIFA games are perhaps somewhat gimmicky, it is an opportunity for world football to capitalize on the growing market amid a big international live sporting event. 

For many young people their access point to sports such as football is online-first. These digital natives are comfortable interacting with the sport through the gaming medium. In terms of the blockchain applications of the games, one includes NFT-like facets which allow players to build their own piece of FIFA World Cup pictures and moments, while the metaverse game Upland includes the real ownership of digital property rights. 

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