Ethereum updated its all-time high above $ 4600, Solana took fourth place in the overall ranking of cryptocurrencies by capitalization, the US House of Representatives adopted an infrastructure plan for $ 1.2 trillion and other events of the outgoing week.
Ethereum price renews high above $ 4600
On Wednesday, November 3, the quotes of the second largest cryptocurrency by capitalization reached $ 4639, having renewed their all-time high.
At the time of writing, Ethereum is trading at $ 4600. Market cap – $ 546 billion, according to CoinGecko.
Solana price renewed its all-time high above $ 250
On Friday, November 5, Solana (SOL) quotes renewed their all-time high at $ 250. The next day, the asset price reached $ 259.
At the time of writing, Solana is trading at $ 253. The cryptocurrency took the fourth place in the overall rating in terms of capitalization with an indicator of $ 77 billion.
US House of Representatives adopts $ 1.2 trillion infrastructure plan
The US House of Representatives voted to pass a $ 1.2 trillion infrastructure plan without amendments in favor of representatives of the crypto industry.
Votes were divided 228 against 206. The document was sent for signature to US President Joe Biden.
Coin Center CEO Jerry Brito said the fight was not over. He explained that the provisions on cryptocurrencies will come into force on January 1, 2024. Brito said the Senate will work on a second major spending bill that could include an amendment.
The crypto community criticized the document for an expanded definition of a “broker” to include participants in the crypto industry. It obliges miners, node operators, wallet developers, liquidity providers in DeFi protocols, and other non-custodial players to report to the tax authorities on user transactions.
Senators Ron Wyden, Cynthia Lummis and Pat Toomey have proposed excluding crypto industry participants from the bipartisan plan. Their colleague Rob Portman put forward a counter amendment that exempts only miners and vendors of hardware or software from tax reporting, leaving the status of PoS validators unclear.
On August 9, Democrats, Republicans and the Treasury Department reached a compromise, but the corresponding amendment did not receive unanimous support – 87-year-old Richard Shelby opposed.
The crypto community is also worried about another amendment to the infrastructure plan, which will oblige recipients of digital assets worth more than $ 10,000 to verify the sender’s personal information.
Fed announced the curtailment of the emergency stimulus program
The US Federal Reserve System (FRS) will begin to curtail the program of emergency stimulus to the economy and will reduce the volume of redemption of government bonds by $ 10 billion, and mortgage securities – by $ 5 billion.
In November, the buyback volume will be reduced from $ 120 billion to $ 105 billion, in December – to $ 90 billion.
The Fed also kept the interest rate on federal loans in the range from 0% to 0.25% per annum.
The report says that the growth of economic activity and employment is influenced by the epidemiological situation and progress in vaccination, which also contribute to lower inflation.
The regulator plans to maintain a stimulating monetary policy to achieve maximum employment and inflation at 2% in the long term.
The US Treasury publishes a report on the risks of stablecoins
The US Treasury has released a report on the risks associated with stablecoins. The agency saw in stablecoins a threat to investors and market integrity, and requested tough legislative restrictions.
In terms of risks, we are talking about “banking panic” and the excessive opacity of reserves that provide stablecoins.
The report was compiled by the US President’s Financial Markets Working Group (PWG). Its participants called on Congress to equate stablecoin issuers with depository institutions with compulsory deposit insurance, which will put them on a par with banks. Organizations that do not meet these stringent requirements will then be banned from issuing stablecoins.
Oversight, according to the PWG, should be carried out both at the level of such an institution and at the level of the holding company to which it belongs.
The report speaks of the need for restrictions on the affiliation of issuers with other commercial organizations (this is probably most related to the Bitfinex and Tether tandem).
Bitcoin mining difficulty increased by almost 8%
As a result of another recalculation, the difficulty of mining the first cryptocurrency increased by 7.85% – up to 21.66 trillion hashes (T).
This is the eighth consecutive increase since the industry ban in China. However, it has not yet risen to the maximum level of 25.05 T reached in May.
Against the backdrop of the persecution of mining by the Chinese authorities, the difficulty fell until mid-July. At the beginning of the same month, the figure fell by a record 27.94%.
JPMorgan has named a fair price for bitcoin
Analysts at JPMorgan called the fair price of bitcoin $ 35,000. If the volatility of the first cryptocurrency halves, the bank’s experts consider the goal of $ 73,000 to be reasonable.
JPMorgan predicted the growth of digital currencies in 2022 at 15% per annum, which is higher than the indicators of real estate (12.5%), hedge funds (7.5%) and stocks (5%).
According to analysts, the high volatility of cryptocurrencies makes them less attractive to investors. The bank is confident that digital currencies cannot be recommended as a key asset.
Goldman Sachs allowed Ethereum to rise to $ 8000 by the end of the year
Ethereum price could rise to $ 8,000 by the end of the year if historical correlation with inflation expectations persists. This point of view is shared by the managing director of global markets of the investment bank Goldman Sachs Bernard Rzimelka.
He referred to the correlation observed since 2019 between the market estimate of inflation over a two-year horizon and the Bloomberg Galaxy Crypto Index. The weight of Ethereum in the latter is 40%, which is the same as that of Bitcoin. The remaining 20% comes from Litecoin, Bitcoin Cash and EOS.
Peter Thiel calls $ 60,000 bitcoin a sign of inflation
The high price of bitcoin indicates that the economy is facing real inflation. This opinion was expressed by co-founder of PayPal Peter Thiel.
Speaking at the second Conference on National Conservatism, the billionaire said that rising prices are not temporary. He criticized the Fed for not fighting inflation and not understanding its seriousness.
“You know, bitcoin is already worth $ 60,000, and I’m not sure if you should buy it aggressively. But, of course, this tells us that we are in a crisis moment, ”said Thiel.
According to him, the Fed is not even aware of the problem and mistakenly believes that it can print money without negative consequences for the rise in prices.
What else to read and see
In October, there was a trend for meme tokens, as well as native coins of the metaverse and GameFi projects. Inflationary expectations have prompted investors to pay attention to cryptocurrency stocks.
About this and not only – in the industry review for October. All the most important things about the cryptocurrency market in a month in one article.
Especially for ForkLog, GMT Legal Managing Partner Andrey Tugarin and NOA Circle Partner Eduard Davydov discussed the most significant changes in the leadership FATF for the crypto industry, which could potentially pose a risk for founders and developers DeFi and NFT-projects.
In traditional digests, we have collected the main events of the week in the fields of cybersecurity and artificial intelligence.
We suggest recalling the most significant news from the venture investment sector in recent years with our “Institutional Bulletin”.