Come every saturday Hodler’s digest helps you keep track of every single important message that happened this week. The best (and worst) quotes, introductory and regulatory highlights, leading coins, predictions, and more – one week on Cointelegraph in one link.
This week’s top stories
According to Insider, Amazon plans to accept Bitcoin payments this year
The crypto community was wild earlier this week after rumors began to circulate that Amazon was about to accept Bitcoin payments.
The rumors started after Amazon posted a job posting for a lead in digital currencies and blockchain products on July 22nd. Four days later, an anonymous source within Amazon reportedly told London business newspaper City A.M. that the e-commerce giant was planning to accept bitcoin (BTC) Payments by the end of 2021.
“This is not just about setting up cryptocurrency payment solutions at some point in the future – this is a comprehensive, well-discussed, integral part of the future mechanism of how Amazon will work,” the source told City AM, according to a report released on Sunday.
The Chinese crypto journalist Colin Wu attributed to Monday’s emerging market action that saw Bitcoin gain approx. 15% in less than three hours, to the rumored plans from Amazon.
How wrong it turned out that this very confident sounding quote was from an unnamed source after the multinational giant refuted the speculations two days later.
“Despite our interest in space, the speculation that has arisen about our specific plans for cryptocurrencies is not true,” said a spokesman.
Bitcoin struggles with $ 40,000 after Jerome Powell’s “most confusing” press conference
Bitcoin surged to over $ 40,000 on July 29, the day after the Federal Reserve indicated it was getting closer to its asset purchase program that has fueled the economic recovery in the United States.
Digital gold previously hit $ 41,000 before the critical Fed update. Unsurprisingly, it lost momentum after the Federal Reserve Open Markets Committee released its policy statement, followed by a press conference chaired by Fed Chairman Jerome Powell.
Powell had previously said that the Fed would continue to buy bonds until it sees “significant further progress” in the recovery of the US economy. For a while, however, it wasn’t known exactly what that actually meant, and Powell eventually cleared this up after being questioned at a July 28 press conference.
It turns out that “substantial further advances” mean strong employment and growth towards maximum employment.
Maximum employment refers to the highest attainable level of employment that the economy can sustain with stable inflation. With soaring inflation and the downsizing of jobs due to the pandemic, the Fed’s maximum employment targets may need further clarification.
BTC investors have been watching closely how quickly the central bank could unwind its $ 120 billion per month bond purchase program due to its role in supporting the bitcoin bull market.
Binance lowers withdrawal limits and introduces tax reporting tool
Following increased scrutiny of Binance by governments and financial institutions around the world, the world’s largest crypto exchange has been working on regulatory compliance.
In a recent attempt to maintain dialogue with global regulators, Binance introduced withdrawal limits and a new tax reporting system.
The company officially announced a major update to its Know Your Customer policy on July 27th, which will significantly reduce the maximum withdrawal amounts for users who have not completed full identity verification.
As of the date of the announcement, new Binance accounts whose users have only completed basic account verifications will not be able to withdraw more than 0.06 bitcoin per day, which is worth about $ 2,329 at the time of writing. Previously, the maximum daily withdrawal amount was capped at 2 BTC, or around $ 77,661.
On July 30, the platform also announced that it had announced its Trading in crypto derivatives for customers all over Europe, initially starting with Germany, Italy and the Netherlands.
This week, Changpeng Zhao, the CEO and founder of Binance, said he wanted the crypto exchange Working with local regulators how it sets up a regional headquarters.
Zhao, also known as CZ, hinted that Binance would deviate from its decentralized funding approach and wanted exchanges with regulators to be coordinated as the company expanded.
“We want to be approved everywhere,” said CZ. “We will be a financial institution from now on.”
MicroStrategy promises to buy more BTC in the second quarter despite the paper loss of its $ 424.8 million inventory
MicroStrategy pledged to buy more Bitcoin, despite reports of $ 424.8 million in impairment losses in the second quarter after being “pleased” with the results of its digital assets strategy in its July 29 Q2 report.
At first glance, MicroStrategy seemed to have lost track, as the Q2 report showed that MicroStrategy was trading as of 30. The average book value per bitcoin was an estimated 19,518 US dollars.
Earlier this week, Elon Musk’s Tesla also released a Q2 report that showed: $ 23 million depreciation on its Bitcoin holdings.
Because both companies categorize Bitcoin as an “intangible asset,” accounting rules mandate that they must report an impairment loss if the asset’s price falls below its cost base. However, you are not required to report an increase in the price of the specified asset until the position is realized through a sale.
Digital asset numbers were calculated using Generally Accepted Accounting Principles (GAAP) – a set of generally accepted accounting standards for financial reporting. The company also submitted non-GAAP calculations that exclude the “effects of stock-based compensation expenses and impairment losses and capital gains on intangible assets” in this report.
The non-GAAP numbers paint a different picture for MicroStrategy’s digital asset holdings, with the BTC cost base at $ 2.741 billion, but market value at $ 3.653 billion, for an average cost per BTC of 26,080 And a market price of $ 34,763 as of June 30th.
This could be why MicroStrategy CEO Michael Saylor continues to double BTC and follow the Hodl model.
PayPal plans to launch crypto trading in the UK and could DeFi. introduce
On July 30, it was announced that global payments platform PayPal was planning to expand its crypto trading services to the UK market, and the company also announced that it would adopt DeFi.
According to the company’s second quarter conference call on July 28, PayPal was keen to pat itself on the back after seeing how well it did with its crypto trading services in the second quarter. CEO Dan Schulman stated that the UK is likely to be the next country to offer crypto trading, and “maybe next month”.
Regarding DeFi, Schulman suggested that PayPal investigate “what the next generation of the financial system looks like” and how to integrate smart contracts and decentralized apps into the platform:
“How can we use smart contracts more efficiently? How can we digitize assets and open them up to consumers who may not previously have access to them? There are some interesting DeFi uses as well. And that’s why we work really hard. “
Schulman also announced that the revenue of PayPal’s own mobile payment service Venmo increased by 183% year-on-year and that cryptocurrencies are also widely accepted and traded on Venmo. Venmo launched crypto trading services to an estimated 70 million users in mid-April.
PayPal’s 2020 entry into cryptocurrencies has been widely cited as one of the early catalysts of last year’s meteoric bull run, with the company first announcing its launch US crypto trading service in November.
Winner and Loser
At the end of the week, Bitcoin is at $ 38,906 Ether at $ 2,357 and XRP at $ 0.72 The total market capitalization is $ 1.53 trillion, based on CoinMarketCap data.
Among the top 100 cryptocurrencies, the top three altcoin winners of the week are Quant (QNT) at 70.71%, amp (AMP) at 55.88% and Terra (LUNA) at 43.75%.
The three biggest altcoin losers of the week are Compound (COMP) at -5.79%, Mdex (MDX) at -5.35% and Shiba Inu (SHIB) at -5.19%.
For more information on crypto pricing, be sure to read Market analysis by Cointelegraph.
The most memorable quotes
“I think the central bank digital currencies were invented by Satan himself in Hell.”
Rich check-in, President of Asset Strategies International
“You even have some in the house who are on the House Financial Services Committee not far from me who would basically call blockchain a financial 9/11.”
representative Ted Budd of North Carolina, Member of the House Financial Services Committee and Congressional Blockchain Caucus
“They claim to enable ‘transparency’. Your supporters speak of the ‘democratization of banking’.
Sherrod Brown, Democratic Senator of the United States
“Putting America deeper in a hole is a stupid, inflationary, and overall undesirable way of driving people towards digital assets. I want the USD to continue to be the world’s reserve currency. We need to control spending and support financial innovation on US soil. ”
Cynthia Lummis, Republican Senator of the United States
“When the scourge of the COVID-19 pandemic hit many economies and forced a partial and complete lockdown, this increased the need to continue digitization.”
Mahamudu Bawumia, Vice President of Ghana
“It has been a tremendous failure by major banks to reach consumers across the country. The digital currency and the digital currency of the central bank could be an answer here. ”
Elizabeth Warren, US Senator and former presidential candidate
“We are still pleased about the results of the implementation of our digital asset strategy. With our most recent capital increase, we were able to expand our digital portfolio to over 105,000 bitcoins. We intend to continue investing additional capital in our digital asset strategy in the future. ”
Michael Saylor, MicroStrategy CEO
“Bitcoin mining is the most ESG-friendly business in the world. Bitcoin miners are 24/7 consumers of energy that can be placed near wasted energy systems. Bitcoin miners help energy companies plan / control their demand – this generates income for selling coal and investing in renewable energy systems. ”
Will Szamosszegi, CEO and Founder of Sazmining Inc., from Markets Pro Q&A
Forecast of the week
Ethereum price can reach $ 14,000 if the March 2020 chart fractal holds
Now that it looks like the crypto markets are about to pick up again, numerous bullish predictions are resurfacing. The latest change in mood leaves much to be desired as to whether the coveted “moon” is perhaps in sight again.
Earlier this week, TradingView user “TradingShot” spotted an extremely bullish fractal on the Ethereum chart that indicated that ETH could close above $ 14,000 in 2021.
The Ethereum fractal comprises three technical indicators: a simple 50-day moving average (SMA), a Fibonacci channel, and a relative strength index.
Ether closed above its 50-day SMA in July 2021, the first time since the bearish buzzkill correction in May 2021. As TradingShot pointed out, the past break of the 50-day SMA has predicted bull runs. For example, a rise above the 50-day SMA in April 2020 caused the ETH / USD exchange rate to rise from around USD 170 to over USD 500 in September 2020 – in just 137 days.
A word of caution, however, based on this author’s 20-second analysis: when ETH last hit an all-time high around the $ 4,000 to $ 4,300 price range in mid-May, it stayed there for about five days before going strong crashed and the cops hibernated.
FUD of the week
Warren urges Treasury Secretary Yellen to tackle the rising crypto threats
Earlier this week, Democratic US Senator and anti-crypto advocate Elizabeth Warren urged Treasury Secretary Janet Yellen and other regulators to develop a “comprehensive and coordinated” framework for dealing with risk in the cryptocurrency market.
“As the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, consumers, the environment and our financial system are exposed to increasing threats,” Warren said in a letter to Yellen.
According to Warren, an under-regulated cryptocurrency market poses significant risk to large financial players such as hedge funds and banks. What Warren forgets, however, is that during times of financial crisis, hedge funds and banks are usually bailed out with taxpayers’ money so they really don’t have to worry.
Known for pushing back cryptic currencies, or whatever they are called, the Senator has called assets like Dogecoin a “fourth-rate alternative to real currency.”
It seems she hasn’t seen enough memes from the DOGE community to be swayed by the value of Dogecoin.
IMF warns of El Salvador’s Bitcoin law
The International Monetary Fund (IMF) warned this week that the consequences of adopting Bitcoin as the national currency could be “devastating”.
The IMF hasn’t specified which country it was talking about, but it is thought it could be El Salvador – the first nation to adopt Bitcoin as its national currency.
According to the IMF’s Financial Advisor and Director of Marketing, Tobias Adrian, and General Counsel and Director of Legal, Rhoda Weeks-Brown,
Countries that introduce cryptocurrencies as national currencies or “grant crypto assets legal tender status” risk domestic prices becoming very unstable.
They also stressed that the assets could be used in contrast to anti-money laundering and terrorist financing measures, in addition to issues related to macroeconomic stability and the environment.
Law professor calls for regulation of crypto mining during U.S. Senate hearing
Just as everyone was excited to see the bulk of the global BTC hash rate migrating from China to the US, a little-known legal expert has to ruin it all.
Professor Angela Walch of St. Mary’s University School of Law attended the July 27 crypto hearing in front of the U.S. Senate Committee on Banking, Housing, and Urban Development to call for stricter regulations for people who are concerned about the smooth running of the crypto Sector.
Fortunately, she did not call for a China-like ban, and in a speech before the committee, Walch claimed that miners had “significant power” over how blockchain networks work. It claimed that they could potentially exploit the role of transaction ordering, which could become a “major problem” for cryptocurrencies.
In emphasizing this point, Professor Walch likened miners’ extractable value paradigm – where miners make more profit by ordering transactions in a certain way – as a kind of “bribe”.
She may be right – sometimes it feels like you’re bribing someone to get an Ethereum transaction through the books, when Tokenized cats are clogging the network and send gas charges to the moon.
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