Crypto Market Situation and US Bill Information

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2021-10-29 07:28:28

Market situation

Bitcoin after rising slightly corrected back to around 39,000 USD. In any growth process of BTC, there are corrections and accumulations before it can continue to rise.

According to an on-chain data shared by CryptoQuant, there were $131 billion in Bitcoin movement. However, the amount of BTC moving on exchanges is only 1%, so the majority of BTC moving is not from exchanges. It is possible that this large amount of BTC is moving on OTC exchanges and is a sign of big whales buying BTC.

Is on-chain analysis valuable?

Recently, the crypto market Thuan as well as many people use or analyze on-chain data to make market judgments. Blockchain aims at information transparency, so information such as block data (time, gas fee, miner, ..), transactions (wallet address, number of transactions, type of transaction coin, .. .), interactions with smart contacts are recorded on the blockchain network. So, on-chain data located on the blockchain network was used to see activity in the crypto market.

There is also some debate about whether on-chain data can be used in conjunction with technical analysis and on-chain analysis is really valuable.

This conversation on this topic started with Peter Brandt, a very good technical investor who relies on technical analysis and said that the price of BTC will continue to fall (July 15, when BTC is around). level of 30,000 USD). And Willy Woo, an early user of on-chain analytics, based on on-chain data says that BTC will continue to grow. Peter Brandt then said that if BTC continues to hold above $30,000 it will be a test to see if on-chain analysis is valid.

Since July 15, BTC has experienced a 10-day continuous growth and reached a high price of $42,600. So the question arises, does this result prove that on-chain analysis is valid?

In Thuan’s view, on-chain analysis is as much a tool as other tools such as technical analysis. In the short term, the price will be affected by many factors such as market sentiment, news, market activities. Therefore, on-chain analysis is also a tool that can be combined with other tools to have more different perspectives to understand the market and make investment decisions. In the short term, tools like on-chain analysis or technical analysis are relative in terms of accuracy, so we also need to look at long-term data. Combining different tools will help analysts have a multi-dimensional, objective and more accurate view.

In line with the desire as well as the long-term investment strategy, Thuan chooses a long-term price average in crypto investment. We can see the short-term price of BTC as well as crypto can be very volatile and very difficult to predict. But in the long-term, BTC is still the fastest growing investment segment compared to other asset classes.

Like the gold market, within the past year, gold did not even grow but also fell 1.04%. US stocks also have strong growth within a year compared to an average increase of 8%, Dow Jones in a year has increased 30.65%, S&P is up 33%. In the past 1 year, BTC has increased by 242%.

Controversial Bill Affects Crypto

A new US bill says those classified as “brokers” in the crypto space will be subject to strict tax reporting. This definition of “broker” relates to the newly proposed Senate bipartisan infrastructure bill.

The bill wants to fund $1 trillion worth of infrastructure projects across the United States and spur economic growth. It is proposed that certain portions of funding be offset using the $28 billion raised through taxing brokers.

The original definition of a broker is a person who is regularly responsible for providing any service affecting the transfer of digital assets, including any decentralized exchange or peer-to-peer market. This definition has scared many people. Loose and unclear definitions mean that many groups such as software developers or miners can also be taxed.

The effect of this initial definition could cause miners or many companies to leave the US, causing more economic damage than immediate benefits. So it is changed and assumes that the broker is the person responsible for regularly providing any service affecting the transfer of digital assets on behalf of others.

The definition of service provider in the US infrastructure bill has been adjusted immediately but still receives many objections from the crypto community or congressmen. The bill would also need negotiating amendments. We will update the following information.

Other notable information:

  • Square’s earnings report shows that BTC-related service revenue has grown by 200% and accounts for more than 58% of the company’s revenue. Although the profit from providing BTC services is still low because Square is still in the early stages and invested heavily in this segment for the long-term development future.

  • Cardano (ADA) founder Charles Hoskinson has confirmed that after the Alonzo hard fork smart contracts will be available on the cryptocurrency’s network, adding that over time, the infrastructure on Cardano will only become more should be better. Hoskinson added that he believes the necessary infrastructure for the hard fork will be built “within the timeframe of August to September” and that after this hardfork smart contracts can work on the platform. by Cardano.

  • Over the past 3 months or so, BTC and crypto have dropped and the market has gone flat but the NFT fever hasn’t subsided. The number of NFTs sold as well as the amount traded has also increased sharply and reached a new high.

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