🧘‍♂️If You Hold Crypto…

Market Meditations | August 9, 2021

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Dear Meditators

? Are we on our way to making new ATHs in the crypto markets?

Here’s the full update.

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❗Infrastructure Package Sealed with Red Tape

The final passage of the Bipartisan Infrastructure Framework is expected to be voted on early Tuesday morning at the latest. As we covered in Monday’s newsletter, this could have far-reaching implications for the American cryptocurrency industry. While red tape blocks the way for progress on Amendments, crypto regulations hang in the balance.    

Problem:

  • The current wording in the bill broadens the definition of “broker” to include “any entity in the cryptocurrency industry that facilitates the transaction of digital currencies for another person”. This would prove virtually impossible for miners and developers, who have no way of tracking their customers for reporting on tax documents such as 1099 forms, used to report non-employment income.

Solution:

  • Senators Pat Toomey (R-PA), Cynthia Lummis (R-WY) and Ron Wyden (D-OR) worked together to draft an Amendment to the measure which included protections for software developers, hardware manufacturers, and miners. Senators Mark Warner (D-VA), Rob Portman (R-OH) and Kyrsten Sinema (D-Ariz.) submitted a similar Amendment.

While it’s still possible to make amendments to the document, Sen. Bill Hagerty (R-Tenn.) stands in the way of unanimity needed to bring amendments to the floor for voting due to objections over adding to the national deficit. As the clock winds down, the infrastructure bill continues to draw closer to a vote ‘as-is’. While the fate of any amendment is still uncertain, cryptocurrency has made it to the forefront of the political arena in the United States, for better or worse.  


Our Market Meditations are longer format educational segments. Each letter features a Market Meditation which will deep dive and analyse a relevant crypto event, theme or tool.

New ATHs?

BTC/USD

Tides are turning. The bulls are showing strength and market sentiment is shifting. Assuming continuation of this trend so long as we hold $40,000.

Note there is significant resistance at $45k. Should the price start coming down, this is where the fibonacci levels could be extremely helpful. Taking the 0.236 level, we could see an aggressive entry just around $42k. Although ETH looks a lot more interesting at the moment. 

ETH/USD

We mentioned we expected continuation above the 0.382 level. We have claimed that level and so, we expect further upside.

Trends tend to overextend in crypto. So when you see giant moves up like this, that signifies a serious amount of demand. Zooming out now:

The current run has wiped out the last 2 lower highs. Clearly the market structure has shifted. Not to mention we have reclaimed the 0.382 level of our move down. In this sort of position, we prefer looking for dip buying entry positions in ETH compared to in BTC.

Invalidation levels at $2.7k and $2.5k (hard invalidation). If we lose these levels, we re-evaluate.


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? Crypto Access To Masses 

Crypto is revolutionizing the world’s monetary systems. One of the major perks of crypto is that it is accessible to anyone regardless of circumstance. While this may be true once you own crypto, it may be confusing to those who are currently unbanked how this “crypto system” is any different than the current one. One simple answer on how the unbanked can get involved? Crypto ATMs. (To learn more about crypto ATMs and the access that they give, click here!

What is a crypto ATM and how do they work? 

  • They function as regular ATMs except you “exchange” cash for cryptocurrency. 

  • You don’t need a bank account → only a digital wallet. 

  • You can transfer cash to someone else as cryptocurrency (many times for a much lower rate than a bank wire). 

  • Depending on the location of the crypto ATM, there may be KYC. 

Downsides to crypto ATMs

  • The average transaction fee to use these ATMs is 8.4% to buy BTC, but be sure to check the fee before completing the purchase as fees can be much higher! 

  • There is a limit to the amount you can purchase. 

  • Crypto prices may vary on the ATM (on top of the transaction fee, they can markup the price of BTC or any other crypto that they have). 

Crypto ATMs provide easy access to those who are unbanked. For those who are unfamiliar or perhaps wary of Bitcoin, it also provides familiarity since it functions similarly to an ATM. There has been a 71.3% increase in crypto ATM installations since the beginning of 2021. The placement of more and more ATMs is simply another thing that will help spread awareness for crypto!


On Mondays, our ‘Scan The Week’ section is designed to show our community what events and headlines we will be keeping an eye on.

Monday, 9th August

Tuesday, 10th August

Wednesday, 11th August

  • ?? CPI and PPI Inflation
    The consumer price index (CPI) and the producer price index (PPI), which drop Wednesday and Thursday respectively, will reveal the extent of price increases in July for consumers and businesses. 

  • ?️ Futurist Conference 2021
    Futurist Conference is the largest and most high-profile blockchain & emerging tech event in Canada, bringing together a global audience of attendees with startups, investors, developers, enterprise leaders, financial institutions, researchers, academics, and emerging tech pioneers

Thursday, 12th August

  • ? Kava Mainnet Launch
    Kava Swap is a cross-chain liquidity hub for all DeFi apps and financial services. It leverages Kava’s existing validators for security, bridges for cross-chain asset transfer, and partners services such as Chainlink oracles for price-reference data.

Friday, 13th August

  • ? Crypto.com’s first-ever NFT trading raceText
    Crypto.com is giving away USD 15,000 for the first-ever NFT Trading Race on Crypto.com NFT, where the Rank 1 winner will take home USD 2,000 of CRO. Campaign period: 07:00 30 July – 07:00 13 August 2021 UTC. Prize pool: USD 15,000. Buy or sell any collectible on Crypto.com NFT to participate.


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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Gerasimos P.


Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here

Disclosure. Some of the links we’ve included are affiliate, they give you rewards and discounts and earn us a commission. Additionally, the Market Meditator writers hold crypto assets. See our investment disclosures here.