| Your Weekly Update On All Things Crypto |
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| New Bipartisan Infrastructure Bill to Use Inflation and Taxes From Crypto Hashrate Returns to the Bitcoin Network as Major Miners Relocate and Come Back Online Horizon Blockchain Games Raises $4.5M From BITKRAFT and CMT Digital Bitcoin Breaks Above Moving Averages and Finds Support on the 200-Day EMA Altcoin Dominance Dips to Critical Support Before Rebounding to 50-Day EMA Events on the Horizon: Global NFT Summit & Token2049 Europe |
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| Bipartisan Infrastructure Bill Looks to Generate $30B by Taxing Crypto Investors |
| Context In recent news, Congress has been talking about a new bipartisan infrastructure bill that involves generating $28-$30 billion from cryptocurrency investors by imposing new information reporting obligations on exchanges and other parties, in addition to increased inflation and taxation. The news comes at a time when cryptocurrencies have been skyrocketing in terms of popularity and Bitcoin (BTC) had finally managed to reach $40,000 once again, with other notable altcoins such as Ethereum (ETH) and Cardano (ADA) both increasing in their respective prices lately as well. More Taxes? Simply put, there is going to be a new provision centered around increasing inflation reporting when it comes to cryptocurrencies and their relevant taxation. This is being done in order to all but guarantee that each transaction is adequately reported and subsequently taxed judiciously. To that end, the money collected from the taxes shall then be utilized to pay for the aforementioned bill and all of its relevant aspects. It remains to be seen as to what the response to this is going to be from the cryptocurrency community, as one of the main reasons as to why investors flocked to crypto, to begin with, was to avoid the overbearing presence and intervention from the government. New Definitions In related news, the United States Securities and Exchange Commission (SEC), with the help of the U.S government, is looking to develop new ways of defining crypto and crypto-related terms. Cynthia Lummis of the Republican Party recently expressed her thoughts about how the regulatory environment may evolve in the future. She emphasized that, above all else, the initial step has to do with developing ‘solid and usable definitions' that can be universally agreed upon when it comes to legislation. The new and extended definitions appear to be the major source of concern amongst many in the crypto and DeFi sector, however. According to these, brokers would now be defined as all individuals who support various types of crypto-to-crypto transactions, which may explicitly include popular centralized exchanges such as Binance and Coinbase. Additionally, there are mounting concerns that software developers and even hardware wallets might be at risk due to them falling under this category as well. This means that before long, it is highly plausible that the government would like to know about each transaction in order to tax it, which would imply that the government may inadvertently gain access to crypto wallets themselves (coincidentally enough, this is exactly what had transpired in South Korea recently as the Korean government is actively working on ways through which it can directly access and potentially seize crypto from users’ wallets). As such, the U.S government would have to give a massive extension of notice regarding everyone who would be obligated to disclose information (what kind and to what extent), and of course the transactions themselves. |
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| Hashrate Returns to the Bitcoin Network as Major Miners Relocate and Come Back Online |
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Chinese miner exodus adds great value to Bitcoin through increased decentralization of mining hash power. This has created opportunities for nations around the world to support and benefit, welcoming the fleeing miners recently ousted from China. Hash power charts are recording a return of those Chinese miners to the Bitcoin network, as they set up shop again elsewhere. The result of this Chinese crackdown on miners is a more decentralized Bitcoin, suddenly increased application of renewable clean energy, and Bitcoin's fully transparent victory in yet another great test of its staying power and resilience.
The charts are showing us presently that Chinese miners are returning to the Bitcoin network in countries outside China. After the Bitcoin hashrate witnessed a reduction of 54% initially, studies now show that more than 20% of that has returned to the network. Chinese mining dominance which has previously peaked above 75% of all BTC hash power, now after the ban is sitting at less than 50%, with miners returning daily outside China. The United States has shown a big gain in hash power market share. Other countries like Russia, Canada, and Kazakhstan, which have shown support for fleeing miners, are also reaping rewards in increased Bitcoin mining market share.
In today's crypto market with the exploding popularity of more centralized coin options and consensus models, it is important to reflect on the most valuable component to the market leader Bitcoin, it's decentralized nature. As exampled by China and many others, governments and regulations will play a role in the future of crypto. Seizures, hacks, and sudden adverse regulations should be planned for. The solution to this in most cases is simply Bitcoin's greatest value proposition, it's decentralization. Seek to control of your own crypto, and invest to propagate the most decentralized platforms. Power to the people. Everyone get a Ledger.
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| Horizon Blockchain Games Raises $4.5M From BITKRAFT and CMT Digital |
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Horizon Blockchain Games (Horizon), a video game and Ethereum Web3 wallet and platform company, has raised $4.5M USD in a pre-Series A round SAFE from strategic gaming and blockchain investors, including BITKRAFT Ventures, CMT Digital, The Xchange Company, Khaled Verjee and Zyshan Kaba. Horizon’s vision is to bring the symbiotic economies and power of Web3 and Ethereum to players, consumers, and developers alike with products tailor-made for everyday Internet users.
"This year will be monumental for Horizon Blockchain Games as we accelerate the adoption of Ethereum and blockchain technologies,” said Peter Kieltyka, CEO of Horizon. “Our Sequence crypto and NFT wallet and our game Skyweaver make blockchain simple, fun and accessible for everyday users. We’re thrilled to launch both products this year, and to enable virtually anyone with an Internet connection to participate in and benefit from this next generation of the Internet: the decentralized web."
“We first got excited by Skyweaver in 2019 and became even more enthralled when we learned about the vision for Sequence,” said Colleen Sullivan, CEO of CMT Digital. “Horizon’s poised to make Web3 and Ethereum accessible and enjoyable for virtually anyone with an Internet connection, and we love working with them.”
About Horizon Blockchain Games Horizon is driving Web3 adoption by making blockchain easy, fun, and powerful for users and developers. The Sequence smart wallet and developer platform for Ethereum, NFTs, Web3, DeFi, and Dapps allow users and developers to access and build the next generation of the Internet. Skyweaver is a free-to-play digital trading card game where players can win, own, trade, and sell their NFT cards. Horizon is headquartered in Toronto, Canada, and backed by leading investors Initialized Capital, Golden Ventures, Polychain, Coinbase, BITKRAFT Ventures, CMT Digital, ConsenSys, DCG, Regah Ventures, iNovia, and The Xchange Company. Learn more about the New Dimension Horizon is building at https://horizon.io.
About BITKRAFT Ventures BITKRAFT Ventures is a global early and mid-stage investment platform for gaming, esports, and interactive media. Founded by esports veteran Jens Hilgers, BITKRAFT serves a worldwide network that spans some of the industry’s most forward-thinking startups and founders working to build and operate the virtual worlds and economies of the future. BITKRAFT operates five venture funds with a total of over $420M USD in assets under management and has over 40 companies in its global portfolio. |
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Are Altcoins In For A Sell-Off Or Breakout?
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| | Gaming as a Tool of Economic Empowerment |
| | Bitcoin on Track for $307K by Start of 2022, "It Won't Take Much" - Robert Breedlove |
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| Bitcoin Breaks Above Moving Averages and Finds Support on the 200-Day EMA |
Following the strongest weak Bitcoin has had in more than 6 months, the price has held up quite nicely. Bitcoin is currently holding support on the 200-day exponential moving average (EMA). With the 50-day EMA below the 200, it looks like Bitcoin may be in store for a golden cross in the next few weeks. This is a bullish momentum pattern and will likely signal further upside for the Bitcoin price.
However, we are not out of the woods yet. Bitcoin still sits within (not above) the bull market support band on the weekly chart. When we break above the bull market support band, we will have officially shifted back into the excitement phase of the bull market.
If there is one thing the rally of the last two weeks has shown us, it is that this bull market is far from over, and when sentiment changes, the price can rally quickly. Do your research, don't trade with emotion, and when all else fails... HODL!
View the chart here. |
| Altcoins Find Support on Critical Line of Support |
As we have been reporting for the past few months, the altcoin market has played out much as we have called for. We called for a re-test of the ascending line of support (green) for months. We also called for a strong bounce off that line, and that is exactly what we got last week. Dominance dropped as low as 50.8% and quickly shot up over 53%.
The next test for altcoin dominance comes at 54.5%, where the descending line of resistance (white) is met. If we can break up above this line, we will be able to confidently say we are moving back into an altcoin cycle, however, if we met resistance and revert downward, it would indicate that Bitcoin has a few more weeks left in the spotlight.
View the chart here.
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TOKEN2049 is the premier crypto event, organized annually in Hong Kong and London, where founders and executives of the leading crypto and blockchain companies share their views on the market. We shine a light on the global developments while taking a unique and widening perspective on the ecosystem and its vast opportunities. Meet the pioneers, the early believers, highly influential and established opinion leaders. TOKEN2049 brings together the global crypto industry, uniting entrepreneurs, investors, developers, industry enthusiasts, and global media - and creates unparalleled networking opportunities. This is the community that will define what’s next in the space.
Register for Europe:7-8 October 2021 | London Register for Asia: 23-24 November 2021 | Hong Kong |
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| We at CryptoWeekly are not Financial Advisors. None of the content or opinions expressed in this newsletter should be considered financial advice. We highly recommend that you do your own research before investing in any project within or outside the cryptocurrency space. |
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