Bitcoin (BTC) was down for a third day in a row, sliding towards $ 44,000 after the largest cryptocurrency by market value hit a high of nearly $ 46,800 in three months earlier this week.
“There just isn’t much of an appetite right now for bitcoin above $ 46,000, but you also don’t see a massive sell-off,” said Matt Blom, head of trade for the industry on Thursday. digital asset company Eqonex. interview.
The prices of ether (ETH), the native cryptocurrency of the Ethereum blockchain and the second largest crypto in aggregate by market cap, were also down, holding just above the $ 3,000 mark at time of publication.
“The crypto market is taking a hiatus after a week of positive price performance,” investment research firm FundStrat wrote in an emailed note.
- S&P 500 : 4460,8, +0,3 %
- Or : 1753,5 $, +0,15 %
- The 10-year Treasury yield closed at 1.372%, down from 1.341% on Wednesday.
Developments on the regulatory front continued Thursday as U.S. Representative Anna Eshoo (D-Calif.) Asked House Speaker Nancy Pelosi (D-Calif.)
Eshoo, described by Politico in 2014 as “Pelosi’s closest friend in Congress,” wrote that the current definition of the term “broker” for crypto tax reporting purposes is too broad and may be difficult for some to follow. entities, writes Nikhilesh De of CoinDesk. .
Under the current terms of the provision, any entity that facilitates a crypto transaction on behalf of another person would be treated as a broker, meaning they would have to file specific tax information reports that would include the details of the transaction. knowing your customer. Supporters in the industry are concerned that the definition of brokers includes miners and other network validators and hardware developers who typically do not have access to customer information.
Some observers have argued that the crypto industry’s pullback against legislation shows the growing weight of a rapidly developing industry that is accumulating power with growing wealth.
“We expect investments in legal, compliance and government relations to increase and innovation in decentralized platforms to accelerate after this battle on Capitol Hill, as crypto takes more root in the dominant consciousness, ”FundStrat wrote this week.
Crypto investments accelerate
According to a report by accounting firm KPMG, investments in blockchain and crypto reached $ 8.7 billion this year through June 30. This amount already exceeds the $ 7.2 billion invested in the industry in 2020.
One of the big winners of the new funds is crypto-centric regulatory technology, according to the report.
TaxBit, a startup that provides reporting software to the Internal Revenue Service (IRS) and a host of institutional clients, said Thursday it had raised $ 130 million in a Series B funding round that values the $ 1.33 billion company, as CoinDesk’s Danny reported. Nelson.
Intrigue intensifies after Poly Network exploitation as attacker returns funds
More than half of the more than $ 600 million drained from decentralized financial platform Poly Network earlier this week has now been returned, writes Jamie Crawley of CoinDesk. Some $ 342 million had been returned as of 08:18 UTC Thursday, according to a tweeter by Poly Network.
The hacker (s) began returning the funds to the wallet addresses of the three blockchains on Tuesday. The amount returned includes $ 4.6 million on Ethereum, $ 252 million on Binance Smart Chain and $ 85 million on Polygon. The still overdue $ 268 million is on Ethereum.
In messages published in the transaction data on the Ethereum blockchain, the alleged attacker (s) wrote that they performed the exploit “for fun”.
“I am not very interested in the money! According to the message posted by the Ethereum address now identified as “Poly Network Exploiter 1”. “I know it hurts when people are attacked, but shouldn’t they learn something from those attacks?” ”
Read more: DeFi needs hackers to become uninspirable
Are cryptocurrency miners betting ETH 2.0 still a long way off?
Major mining companies and bitcoin makers (BTC, -5.43%) increase investments in ethereum mining (ETH, -8.19%) despite impending switch from Ethereum to proof-of-stake, writes David Pan from CoinDesk.
Public bitcoin mining companies Hut 8 and Hive are increasing their aether mining capabilities. In the meantime, mining machine makers like Bitmain and Innosilicon are expected to launch new Ethereum mining machines later this year.
This investment might seem odd, given that the Ethereum system is expected to migrate from Proof of Work (POW) to Proof of Stake (POS) in five months, and POS mining does not require such advanced machines. The growing demand could be attributed to expectations that migration will be delayed, industry professionals have said.
“We were told that mining was going to end four years ago and it is still going on,” said Mark D’Aria, CEO of Bitpro Cryptocurrency Consulting, which focuses on brokerage and mining hardware management. Ethereum. “It’s always been a wait-and-see approach – things tend to take longer than everyone else thinks. ”
Read more: Ethereum miners make multi-million dollar bet on upgrade delay
Money continues to flow into the crypto industry
The KPMG report showed that blockchain and crypto investments in the first half of 2021 topped the total for each of the previous three years. The “Pulse of Fintech H1’21” report released Thursday shows that the $ 8.7 billion in investments for the six-month period ended June 30 compares with the annual totals of $ 7.2 billion, $ 5 billion and $ 4 billion. , $ 3 billion for 2018, 2019 and 2020 respectively.
Read more: Blockchain, Crypto Investment in H1 topped Totals for Year 2018-20, According to KPMG
“Persistent” inflation is the opposite of “transitory”
Following Wednesday’s U.S. government report showing consumer prices moderating in July, some economists are loudly worried that some increases may be lasting – a signal that faster inflation may not be. as temporary as senior Federal Reserve officials headed by President Jerome Powell predicted.
Inflation is a relevant topic for bitcoin investors who argue that the price of cryptocurrency is expected to rise as the purchasing power of the US dollar declines.
According to a Bank of America report released Thursday, the “transient” drivers of inflation eased in July, as used car prices slowed to 0.2% from June, while company prices airlines edged down 0.1%. Both are below the 0.3% increase in the Consumer Staples Index, which excludes volatile food and energy prices.
But the bank’s economists went on to note that “the more rigid and persistent components of inflation were strong.” These included landlord equivalent rent and medical care services, both of which rose 0.3% month over month.
“In other words, transient and persistent inflation is reaching historically high levels,” Bank of America economists wrote.
Mohamed El-Erian, chief economic adviser to German financial giant Allianz, wrote in a column for Bloomberg Opinion that “heightened inflation monitoring is far from over.” One possibility is that employers might be forced to pay higher wages to attract and retain workers, and eventually try to pass these higher labor costs on to consumers.
“It would be better to look to what companies have said about cost and price pressures rather than relying on macroeconomic models that inevitably struggle to grasp the changes associated with the pandemic,” wrote El-Erian.
Altcoin balance sheet:
- DAO Maker Losers Over $ 7 Million: DAO Maker, a fundraising platform for upcoming crypto projects unrelated to the more well-known MakerDAO, was hacked on Thursday, resulting in a loss of more than $ 7 million, according to the company. China-based blockchain security analysis PeckShield. A total of 7.4 million USDC dollar-linked stablecoins were transferred from an Ethereum address associated with attacker DAO Maker to the decentralized exchange Uniswap in exchange for 2,261 ETH, according to PeckShield.
- Chainlink Oracles become available on Arbitrum One: Chainlink’s Oracles, a data feed provider for smart contracts, have been integrated with Arbitrum One, an Ethereum scaling product. Chainlink’s U.S. dollar-denominated price feeds are available now, with support for new price pairs to follow, according to an announcement shared with CoinDesk on Thursday. Arbitrum says it responds to a common demand from smart contract developers, who need high-quality financial market data to power decentralized exchanges, futures and options platforms, and algorithmic stablecoins.
Notable 9:00 p.m. UTC (4:00 p.m. ET) winners: