Strengths
- Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Celsius, rising 29.97%.
- U.S. accounting rule makers took a significant step on Wednesday toward crafting long-awaited rules for how companies report holdings of cryptocurrencies like Bitcoin, a move that would bring clarity to big crypto investors like Tesla and MicroStrategy. Their first move is defining the exact narrow population of digital assets that potential new rules would cover, writes Bloomberg.
- Celsius Network, the bankrupt cryptocurrency lender, is seeking to give back to a sliver of users who are locked out of their accounts. The company asked for a U.S. bankruptcy judge’s permission to release about $50 million worth of cryptocurrency stuck on the platform in so-called custody accounts, reports Bloomberg.
Weaknesses
- Of the cryptocurrencies tracked by CoinMarketCap, the worst performing for the week was Hellium, down 26.39%.
- Texas was once a promised land for Bitcoin miners, a business-friendly state with stable regulations and seemingly endless energy supply. But that tide has turned, reports Coindesk. The state’s grid operator, the Electric Reliability Council of Texas, has slowed issuance of new permits for miners to connect to the grid.
- After a cruel summer, crypto fans might be in for an unforgiving September, too. The ninth month of the year has historically been one of the worst for the largest cryptocurrency, explains Bloomberg, falling every September since 2017. Bitcoin has averaged an 8.5% drop for the month over the past five years, according to Bespoke Investment group.
Opportunities
- Singapore state investor Temasek Holdings Pte is joining a $100 million funding for Animoca Brands, betting on one of crypto’s most prolific investment houses, even after a $2 trillion market meltdown. Temasek has said it doesn’t directly invest in cryptocurrencies and prefers to back service providers in the space instead, writes Bloomberg.
- Japan’s financial regulator proposed easing corporate tax rules for crypto assets as well as lighter levies for individual stock investors in support of Prime Minister Fumio Kishida’s efforts to reinvigorate the economy. Companies should be exempt from paying taxes for paper gains on crypto coins that they hold after issuing them, the regulator proposed in its annual tax-code change request announced Wednesday, Bloomberg reports.
- Swiss digital assets bank Sygnum will open a branch in the Metaverse to reach more clients seeking blockchain-based financial services. Sygnum was one of two banks that were awarded in 2019 for connecting traditional finance with cryptocurrencies and the blockchain, according to a swissinfo.com article.
Threats
- Bitcoin dipped below $20,000 once again, as hawkish comments from the Federal Reserve about inflation and the economic slowdown continue to weigh on riskier assets. Bitcoin dropped as much as 2.3% on Tuesday to trade around $19,723. Riskier assets have been having a rough few days as traders digested comments from Fed Chair Jerome Powell, who reiterated that the central bank is willing to continue monetary tightening even at the risk of an economic downturn, writes Bloomberg.
- Washington DC is suing MicroStrategy co-founder and Chairman Michael Saylor for tax fraud, claiming that he skipped out on paying more than $25 million in income taxes despite living in the district for more than a decade, reports Bloomberg. According to the lawsuit, Saylor knowingly avoided paying taxes he owed since 2005 by fraudulently claiming to be a resident of other, lower-taxed jurisdictions including Virginia and Florida.
- As reported by Bloomberg, Thailand tightened rules on advertising by crypto companies, joining countries like Singapore in seeking to protect retail investors in the wake of a $2 trillion selloff in digital asset markets. Ads for virtual tokens must include clean and visible warnings about the risks of investing in cryptocurrencies, the nation’s Securities and Exchange Commission said in a statement Thursday.
