06 August Cryptocurrency Newsletter

If you are interested in cryptocurrencies, this newsletter is for you. [img] [img]( [FeedBinary Newsletter]( [US Congressmen Want IRS to Balance Taxation and Innovation in the Cryptocurrency Space]( A bipartisan quartet of US congressmen wants the IRS taxation policy not to dissuade taxpayers from participating in blockchain token staking. These politicians believe America’s ingenuity can help drive this promising staking technology. The four congressmen are Bill Foster (D) of Illinois, Darren Soto (D) of Florida, Tom Emmer (R) of Minnesota, and David Schweikert (R) of Arizona. In their letter addressed to IRS Commissioner Charles Rettig, the quartet expressed concern that the “taxation of staking rewards as income may overstate taxpayers’ actual gains from participating in this new technology.” They add this could result “in a reporting and compliance nightmare, for taxpayers and the Service alike.” The letter, in which the U.S. politicians explain their understanding of proof-of-stake (POS), also gives reasons why they favor POS ahead of bitcoin’s proof-of-work consensus. The politicians say in addition to needing “massive amounts of energy,” the Bitcoin network is “secured by a relatively small number of miners.” On the other hand, in POS, “all tokenholders can contribute to network security.” By staking tokens, participating third-party tokenholders can also receive newly created tokens as rewards for helping to maintain the network. The quartet says it agrees with the principle “that taxpayers’ true gains from these tokens should indeed be taxed.” Eager to keep the U.S. abreast with this technology, the congressmen end their letter by urging the IRS to continue pursuing its mandate “but also (to) ensure innovation won’t be driven elsewhere.” This letter by the four members of Congress is the latest signal that the U.S. is moving to embrace blockchain technology and cryptocurrencies. In July, the Office of the Comptroller of the Currency (OCC) clarified that national banks and federal savings associations can provide cryptocurrency custody services for customers. Also in the same month, a U.S. federal court ruled that bitcoin is a form of money. Meanwhile, reacting to the letter by the U.S. congressmen, Tim Ismilyaev, CEO and founder at Mana Security, says the growth of POS has finally forced some people in the U.S. government to see the importance of embracing cryptocurrencies. “The US government recognizes the immense growth of assets locked in POS and defi [decentralized finance] markets (over $15B is already locked in such products) although these markets did not exist a few years ago. The value of locked assets is likely to surpass $100B mark in upcoming years, and this will happen with or without US approval. So this move by Congress toward crypto is rational.” [Read Full Newsletter]( The post [US Congressmen Want IRS to Balance Taxation and Innovation in the Cryptocurrency Space]( appeared first on [Feed Binary](. [Read Full Story]( ------------------ [Why is Cryptocurrency Important?]( Cryptocurrency, a digital or virtual currency, has generated a lot of interest lately. Cryptocurrency is an internet-based based medium of exchange. What is the buzz all about? Why have cryptocurrencies become so important? Why is cryptocurrency important? Despite being a medium of exchange, a cryptocurrency is not issued by any central bank or monetary authority. The digital currency’s decentralized nature is also the main reason why governments are also afraid of it. Cryptocurrency has the potential to undermine the authority of central banks and monetary authorities. At times, these currencies can be used to circumvent capital controls. Cryptocurrency exchanges are regulated. However, due to their recent origin and lack of definition, many authorities claim control over their regulation. Why have cryptocurrencies become so popular? There is a reason why cryptocurrencies have become so popular. They make it very convenient to transfer funds between two parties. There is no need for a third party or a middleman. Also, the processing charges are low compared to the traditional charges levied by banks or other financial institutions. Investing argument in favor of cryptocurrencies Another argument given in favor of investment in cryptocurrencies is similar to the argument for gold investing. Currently, gold is trading at near all-time highs. One of the reasons is the relentless money printing by central banks. The money printing erodes the value of the fiat currency, which undermine investors’ confidence in the currency. Other central bank activities, like negative interest rates and asset purchases, have also driven investors toward cryptocurrencies like bitcoin. Cryptocurrencies are also seen as a hedge against inflation. Cryptocurrencies’ privacy feature The privacy that cryptocurrencies offer has been attracting investors. Governments and other central authorities are trying to trace the digital transactions. While blockchain, the technology underlying cryptocurrencies keeps a public record of all of the transactions, it might not always be possible to navigate through a web of transactions. Some cryptos, like Monero, have enhanced privacy-oriented features. While enhanced privacy features help users retain their privacy, they have been used to mask illegal activities. As a result, there are two sides to cryptocurrencies’ privacy argument. Previously, many market participants either mocked cryptocurrencies’ prospects or dismissed them altogether. However, the situation has changed. One of the most well-known cryptocurrency converts is Jamie Dimon, JPMorgan Chase’s chairman and CEO. In September 2017, he dismissed bitcoin by calling it a “fraud” that would eventually blow up. Less than two years later, he is pushing his company to head into the cryptocurrency space by launching JPM Coin. Due to cryptocurrencies’ disruptive potential, especially for banking and financial institutions, many banks have started to collaborate with crypto clients or launch their own cryptocurrencies. However, cryptocurrencies still have critics The other side of the cryptocurrency coin While cryptocurrency has emerged as a popular means of investing and exchanging value, it does have some drawbacks. Cryptos have been used in many scams and frauds. Some privacy-oriented coins are difficult to trace. As a result, they have been used for criminal activities and tax evasion purposes. Due to the lack of any central control, cryptocurrency value varies widely. Investors should be careful when dealing with cryptocurrencies. [Read Full Newsletter Here]( The post [Why is Cryptocurrency Important?]( appeared first on [Feed Binary](. [Read Full Story]( ------------------ [Price Analysis 8/5: BTC, ETH, XRP, BCH, BSV, LTC, ADA, BNB, LINK, CRO]( Square’s Cash App product has generated $875 million in revenue from Bitcoin (BTC) trading in the second quarter of this year. This is a 600% increase over the comparable quarter in the previous year. This shows increased trader interest, which could have been spurred by the cash heavy “government stimulus programs.” The recent breakout of Bitcoin above the $10,000–$10,500 zone could spark further interest among traders. Twitter personality Dave Portnoy has shown interest in knowing about Bitcoin trading from the Winklevoss twins. If Portnoy can influence his followers, then several new traders are likely to enter the crypto space. However, how many of them will stick around for the long-term is difficult to assess. The derivatives markets give a good insight into the expectations of the larger traders. Although the sharp drop in Bitcoin’s price on Aug. 2 led to liquidations in futures contracts worth over $1 billion, the open interest quickly recovered within 48 hours, suggesting strong accumulation at lower levels. While these are positive signs, Glassnode believes that a sharp [reversal]( in the US stock markets could halt Bitcoin’s “bull run in its tracks.” BTC/USD After forming an inside day candlestick pattern on Aug. 3 and 4, Bitcoin is attempting to resume its up move today, which suggests that the bulls have overpowered the bears. The upsloping moving averages and the relative strength index in the overbought zone suggest that the bulls are in command. If the buyers can propel the BTC/USD pair above $12,113.50, the uptrend is likely to resume. The next target objective to watch on the upside is $13,000 and then $14,000. The bears are likely to defend the $14,000 levels aggressively, hence, a meaningful correction is possible at those levels. Contrary to the assumption, if the pair turns down from the $12,113.50 resistance, it could enter a consolidation between $10,400–$12,113.50 for a few days. A break below $10,400 will be a huge negative as it is likely to catch several bulls off guard, resulting in liquidations of long positions. ETH/USD Ether (ETH) has been sustaining above the $366 support and is attempting to gradually inch higher. If the bulls can propel the biggest altcoin above the $400–$415.634 resistance zone, a rally to $480 is possible. Although the upsloping moving averages suggest an advantage for the bulls, the deeply overbought reading on the RSI warrants caution. The failure to break above the $415.634 level could attract profit booking by the short-term traders that could pull down the ETH/USD pair to $366 level. A break below this support will be the first sign that bears are making a comeback. Below $366, the correction can extend to $346.857 and $325.612, which are 38.2% and 50% Fibonacci retracement levels of the most recent leg of the rally. A bounce from either support will be a positive sign as that will indicate buying interest at lower levels. However, if the bears sink the price below $304.367, a trend change is likely. XRP/USD XRP has formed successive inside day candlestick patterns on Aug. 3 and 4, suggesting indecision among the bulls and the bears. However, the bulls have kept the altcoin above the $0.284584 support since Aug. 2, indicating buying on dips. Both moving averages are sloping up and the RSI is in the overbought territory, which suggests that the bulls are in command. If the bulls can push the price above $0.32, it will increase the possibility of a retest of the overhead resistance at $0.346727. Contrary to this assumption, if the XRP/USD pair sinks below $0.284584, it will indicate that the momentum has weakened. The next support to watch on the downside is the 20-day exponential moving average ($0.249). If the pair rebounds off this support, the bulls will again attempt to resume the uptrend. However, if the bears sink the price below the 20-day EMA, a deeper correction is likely. BCH/USD Bitcoin Cash (BCH) has been sustaining above the $280 support for the past two days, but the failure to rebound sharply from this level signals a lack of demand at higher levels. The 20-day EMA ($272) is sloping up and the RSI is in the positive territory, which suggests that bulls have the upper hand. A break above the $305 level is likely to indicate that the up move has resumed. The next level to watch out for is $320 and then $353. Conversely, if the bears sink the BCH/USD pair below $280 and the 20-day EMA, it will signal advantage to the bears. BSV/USD Bitcoin SV (BSV) has been oscillating around the $227 level for the past two days, which suggests that both the bulls and the bears are trying to establish their supremacy. The 20-day EMA ($208.55) is sloping up and the RSI is in the positive territory, suggesting an advantage to the bulls. They will now try to carry the price to the overhead resistance at $260.86. If the momentum picks up and the buyers are able to scale the BSV/USD pair above this resistance, a rally to $300 and then to $320 is likely. However, if the pair turns down from $260.86, the range-bound action is likely to extend for a few more days. A break below the 20-day EMA will signal weakness. LTC/USD Litecoin (LTC) has been trading in small ranges since the large outside day candlestick pattern on Aug. 2, which suggests a lack of clarity among the bulls and the bears about the next likely direction. If the bulls push the price above $60, a retest of the $64–$65.1573 resistance zone is possible. A breakout of this zone will signal resumption of the uptrend. The next target objective on the upside is $75 and then $80. The rising 20-day EMA ($53) and the RSI in the positive territory indicate that the bulls have the upper hand. Contrary to this assumption, if the LTC/USD pair breaks below $55, a drop to the critical support at $51 is possible. A break below this level will tilt the advantage in favor of the bears. ADA/USD Cardano (ADA) is currently consolidating between $0.13–$0.15 levels. Both moving averages are sloping up, which suggests that the trend is up. If the bulls can propel the ADA/USD pair above the $0.15–$0.1543051 resistance zone, it will indicate that the bulls have absorbed the selling and have reasserted their dominance. The next target is $0.173 and then $0.20. However, if the pair turns down from the overhead resistance zone, the range-bound action might extend for a few more days. A breakdown and close (UTC time) below $0.13 will signal weakness and can result in a deeper correction to $0.11. BNB/USD Binance Coin (BNB) is in an uptrend and the momentum has picked up in the past few days. The bulls have pushed the price above the $22.93 resistance, which indicates demand at higher levels. The next level to watch out for is $24.4588 and if this resistance is also scaled, the rally can extend to $27.1905. Both moving averages are sloping up and the RSI is in the overbought zone, which shows that bulls are in command. Contrary to this assumption, if the BNB/USD pair turns down from the $22.93–$24.4588 zone, it will suggest selling at higher levels. A break below the 20-day EMA ($20) could result in a deeper correction. LINK/USD Chainlink (LINK) surged on Aug. 3 and broke above the $8.908 resistance, which is a positive sign as it shows strong demand at higher levels. Although the next target objective is at $11, the bears are currently attempting to stall the up move at $10. The moving averages are sloping up, indicating an advantage to the bulls. If the bulls buy the dip to $$8.908, that will increase the possibility of a resumption of the uptrend. However, the RSI is forming a bearish divergence, which warrants caution. If the bears sink the price below $8.908, a deeper correction to the 20-day EMA ($7.96) is possible. CRO/USD Crypto.com Coin (CRO) formed an outside day candlestick pattern on Aug. 2, which sometimes signals a reversal. That was followed by an inside day candlestick pattern on Aug. 3, which indicated that the bulls and the bears were indecisive about the next move. The bears sold aggressively on Aug. 4 and dragged the CRO/USD pair to the 20-day EMA ($0.155). The pair has not sustained below this support for more than a day since March 29, hence, the bulls are likely to defend it aggressively. If the pair rebounds off the 20-day EMA aggressively, it will indicate that the bulls continue to buy the dips to this support. A break above $0.176596 will resume the uptrend. Conversely, if the bears sink the price below the 20-day EMA, a deeper correction to the 50-day simple moving average ($0.139) is possible. [Read Full Newsletter]( The post [Price Analysis 8/5: BTC, ETH, XRP, BCH, BSV, LTC, ADA, BNB, LINK, CRO]( appeared first on [Feed Binary](. [Read Full Story]( ------------------ [fb](  [tw]( ------------------ You received this email because you operate or create content for a website/service and based on your website it seemed like this could be important information to you and your users. Want to change how you receive these emails? [Update your preferences]( or [Unsubscribe](