Crypto News: A Weekly Review

In Tuesday trade, Bitcoin couldn’t decide what to do. It began the day with a brief downward spiral, with the price threatening $41,000. Then it took a different path. It was on its way back to where it started the day, above $42,000, before the close of stocks trading in the United States. The biggest cryptocurrency by market capitalization was trading at $42,500 at the moment of writing, up marginally on the day.

Ether, the second-largest cryptocurrency by market capitalization, followed a similar trend, falling and then rebounding. It was trading about $3,150 at the time of publishing, roughly flat over the previous 24 hours. The prices of the top alternative currencies (altcoins) fluctuated, with some rising somewhat and others falling substantially.

The diverse results showed underlying uncertainties about the US and worldwide economies. The S&P 500 lost 1.8 % and the Nasdaq sank 2.6% as investors tried to dump businesses that were losing money. As a result, given macroeconomic struggles, the recovery of bitcoin may rely on huge investors getting back at current or lower price levels. Given the raging Omicron variant, now let us take a deep dive into the cryptoverse to discover what unfolded recently.

Related article | Bitcoin & Ethereum Market Overview: 19 January 2022

Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

A recent report documents the movements of bitcoin millionaires towards Puerto Rico. 36-year-old crypto entrepreneur and investor David Johnson outlines why he moved himself and his entire family to the North American country. Tax breaks are offered to those who spend at least 183 days on the island. Non-Puerto Ricans who make millions in crypto and bitcoin does not have to pay capital gains on their earnings. However, Puerto Rican citizens are having to pay up to 15% long-term capital gains tax. This disparity between locals and non-locals has obviously now been the source of tension between the two groups.

Downward DOGE: Descending Dogecoin Pattern Predicts Deadly Drop

One year ago, DOGEUSD passed the one-cent mark and embarked on a meme-fueled moon mission toward $1. It never quite got there and has been in a downtrend ever since. The altcoin is exhibiting a possible descending triangle chart pattern. A similar-sized drop would take Dogecoin back to around between five to ten cents per coin or lower. A possible chart pattern might suggest that it is time to abandon the ship and send your DOGE back to the pound.

70% Of Bitcoin Supply Is In Profit – Why Bulls Need To Defend This Level

On-chain data shows about 70% of the total Bitcoin supply is currently in profit, a level that has historically been important for bulls. At very high values, the price of Bitcoin approaches the top as profits are realized. Below certain low levels, investors may capitulate to cut their losses. Bitcoin’s price is hovering around $42k, up 0.5% in the last seven days. Over the past month, the crypto has lost 8% in value.

At the moment, only around 70% of the Bitcoin supply is in profit. The metric has been falling down for a few months now.

The NFT Investor’s Worst Nightmare: IRS Craves For A Crackdown

The National Fungible Everyday Token (NFT) market has seen an aggressive surge in trading volume this year. In the first ten days of January, NFT trading generated around $11.9 billion. As a large share of NFT traffic comes from the younger generations, are users prepared for tax filing season? Non-fungible tokens are not close to being as clearly defined by the law as other digital assets. The IRS might see billions of dollars coming from the NFT gains tax bills. Most crypto assets have a long-term capital-gains rate up to 20%, but for art collectibles, it’s 28%.

Intel To Present Low Voltage, Energy Efficient Bitcoin Mining Chip At Conference

Intel has been developing the product since at least 2018 when they registered a patent for a specialized processing system that uses an optimized SHA-256 datapath. The chip will be an “ultra-low-voltage energy-efficient Bitcoin mining ASIC” Intel will reveal their new chip at ISSCC, a yearly gathering of the best and brightest minds in the chip industry. It’s not clear if Intel will release the chip as a product for the public or if this is just a research project.

Why Polygon Will Implement Ethereum’s EIP-1559 Update

EIP-1559 will introduce a burning mechanism for MATIC and will improve its fee visibility. The Polygon team has created a public interface where users can monitor and become part of the burning process. According to Polygon, their team is got ready to roll out the update today January 18th. Polygon (MATIC) trades at $2,09 with a correction to the downside in the past 24 hours. A burning mechanism will contribute to the token’s appreciation as it creates deflationary pressure on its supply. Some experts believe EIP-1559 was one of the reasons for ETH’s price year of continuous appreciation.

American Rapper Lil Baby On Holding Bitcoin And Ethereum Over Fiat

For years now, some investors have preferred to hold their wealth in cryptocurrencies like bitcoin and ethereum as opposed to cash. American rapper Lil Baby is one of the latest celebrities to profess his support for digital assets. The rapper was shopping on Icebox when he was asked about where he stores his money. Lil Baby told an attendant at a jewelry shop that he was carrying the last bit of cash he had in his possession. The rapper is known to drop thousands of dollars at a time for some ‘iced out’ jewelry. Lil Baby is not the first to show support for cryptocurrencies such as bitcoin and ethereum.

Mars4 Metaverse NFT Sale Raises Over $250k in a Day: The World’s First Virtual Mars NFTs Are Selling Rapidly

The sale of Mars4 NFTs raised over $250K in a day and saw land plots sell swiftly via the Epoch System. The Epoch system is a tiered system that rewards investors in stages, offering better returns the earlier one decides to invest. With over 56,000 NFTs sold, only around 3,000 remain before the Epoch’s first stage redistribution kicks in. This system is applied throughout, providing greater returns to investors who hold earlier Epochs. Each NFT Land is a virtual location that the game is set in, allowing holders and players to make use of their own personal Mars. Restores Withdrawals After Reportedly Losing $15m To Hackers, the popular cryptocurrency exchange platform, halted all deposits and withdrawals on Monday, January 11. The firm cited “unauthorized activity” on some accounts. It has, however, reinstated some accounts and withdrawal services, noting that the accounts are now safe.’s CEO Kris Marszalek stated on Twitter that no customer funds had been lost. Peckshield, blockchain security, and data analytics firm, claims that the exchange has lost a whopping $15 million. Cash was used to move the funds, making it harder to track.

Thailand Government Disperses Confusion Surrounding Cryptocurrency Taxation

The revenue department of Thailand is finalizing its measures for implementing its tax plans on crypto traders this January. The move is to provide more clarifying information on the tax over crypto-related activities. This month will mark the finalizing of the criteria for tax calculations which will be on crypto trading profits. A spokeswoman from the government warned that a rush to accept crypto trading without a thorough understanding could lead to a crypto crisis.

Green Energy: In NY, Bitcoin Mining Saved The Oldest Working Hydroelectric Plant

The Mechanicville Hydroelectric Plant is “the oldest continuously operated hydroelectric station in the U.S.” The National Grid had a 40-year commitment to buy power from it. Some of the plant’s energy is now being used to produce bitcoin. In contrast, China banned Bitcoin mining, and some hydroelectric plants immediately closed. “A decade of litigation ensued, and Albany Engineering took control of the hydroelectric plant in 2003”. The local Times Union article from two weeks ago was picked up by Bitcoin publications around the country. “It’s the best (type of bitcoin mining) because we’re using renewable energy,” says Besha.

Fidelity Says What We’ve Been Thinking: Countries & Central Banks Will Buy BTC

Fidelity predicts what Bitcoin’s game theory implies. “It might make sense just to get some in case it catches on”. The company doesn’t try to figure out why China banned Bitcoin mining, but it highlights how fast the hashrate recovered. Fidelity wouldn’t be surprised if other sovereign nation-states acquire bitcoin in 2022. The Fidelity Digital Assets 2021 Institutional Investor Survey found that 71% of U.S. and European institutional investors intend to allocate digital assets in the future. The key to allowing traditional allocators to continue to pour capital into the digital asset ecosystem revolves around regulatory clarity and accessibility.

Related article | Explained: How can I keep my cryptocurrencies safe?

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