Crypto Market Analysis: 16th August 2021
August 16 2021 - 2:24PM
NEWSBTC
Cryptoassets continued their surge last week, with Cardano (ADA) a
standout performer. ADA started the week at $1.41 but has since
soared, reaching over $2.24 on Saturday – a 96% rise. At the time
of writing the cryptoasset is trading around $2.14. Bitcoin
continues to edge back towards the $50,000 mark as it maintains its
steady recovery. Having started the week below $44,000, BTC at
times traded above $48,000 as its rally progressed with some
volatility. It is now trading around $47,431. Ethereum is also now
trading comfortably above $3,000 following its long-awaited London
hard fork two weeks ago. ETH started the week around $2,950, but
despite a blip on Friday has not since fallen below $3,000. It is
currently trading around $3,284. US infrastructure bill approved
The $1trn infrastructure bill passed through the US Senate last
Tuesday, meaning cryptoasset tax proceeds could soon help fund the
US’ ambitious infrastructure requirements, with plans to raise
$28bn in the next 10 years. The bill contains new regulations for
US-based crypto firms to extend the definitions of what defines a
crypto ‘brokerage’ to include exchanges, which will set new higher
level requirements for tax reporting of users. The bill is now set
to head to the House of Representatives for further scrutiny.
Whilst rumours continue to persist about future regulation of the
market, the Federal Reserve is still keen to foster faster payments
by developing its own digital currency pegged to the US dollar,
highlighting enthusiasm for digital payments. Messi’s
ground-breaking new contract leads way for further crypto exposure
Footballer Lionel Messi’s move to Paris Saint-Germain has caused
ripples in the crypto world. Part of his salary will be paid in a
type of cryptocurrency, in a move which could be followed by other
clubs. Messi will be rewarded with fan tokens, provided by
Socios.com, allowing holders to vote on some decisions related to
the club. Whilst these tend to be relatively minor issues, it hands
power to holders to help drive the change they want to see. For
example, PSG has previously allowed fan token holders to choose
motivational messages which go on the dressing room wall before key
games, goal of the season, end of player season awards and receive
personal video calls from star players. Similar to other
cryptoassets fan tokens can be sold or exchanged, allowing holders
to release capital. However, much like other cryptoassets, price
swings are common, leading some financial regulators to issue
warnings to investors. PSG’s scheme saw a surge in the days
preceding the move, with trading volumes exceeding $1.2bn –
demonstrating fans’ excitement about the signing. AMC to accept
payment in bitcoin AMC, the US cinema chain that owns Odeon, has
announced that by the end of the year it will allow customers to
pay for film tickets and concessions in bitcoin. Whilst it is
unclear whether this will apply to Europe, AMC has apparently been
exploring the technology and “how else AMC can participate in this
new burgeoning cryptocurrency universe”. AMC follows in the
footsteps of Microsoft, Wikipedia and US mobile operator AT&T
by accepting the world’s largest cryptoasset as payment. Shares
jumped 6% following the announcement before falling back. AMC has
surged 1,500% this year following strong retail investor interest
and its unwitting involvement in the Wall St Bets Reddit run. $600m
stolen…then returned in Poly Network hack A bizarre chain of events
has seen the biggest ever cryptoasset heist – before the funds were
returned just a few days later. The Poly Network saw $600m stolen
after hackers exploited a vulnerability in its smart contract. The
hackers were seemingly able to override the contract instructions
for each of the three blockchains, before diverting the funds to
three wallet addresses – which were later traced and published by
the Poly Network. But in under 48 hours the hackers started
transferring assets back to the Network into a wallet which both
parties controlled. Whilst there is a debate as to the motivation
behind the attack (white hat hacking or pivoting due to
difficulties laundering it), it rounds off a bizarre set of events
which may prompt many blockchains to test their security levels in
the coming days. This is a marketing communication and should not
be taken as investment advice, personal recommendation, or an offer
of, or solicitation to buy or sell, any financial instruments. This
material has been prepared without having regard to any particular
investment objectives or financial situation, and has not been
prepared in accordance with the legal and regulatory requirements
to promote independent research. Any references to past performance
of a financial instrument, index or a packaged investment product
are not, and should not be taken as a reliable indicator of future
results. All contents within this report are for informational
purposes only and does not constitute financial advice. eToro makes
no representation and assumes no liability as to the accuracy or
completeness of the content of this publication, which has been
prepared utilizing publicly-available information. Cryptoassets are
volatile instruments which can fluctuate widely in a very short
timeframe and therefore are not appropriate for all investors.
Other than via CFDs, trading cryptoassets is unregulated and
therefore is not supervised by any EU regulatory framework. Your
capital is at risk. Image
by Mediamodifier from Pixabay
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