Read in the Digest
- Crypto market rally, new market cap ATH set as BTC, XRP perform.
- Ethereum (ETH) hits new ATH amidst plunging gas fees and spiking hash rate.
- Infrastructure Bill includes concerning crypto tax provisions.
- The FBI warns that crypto scams using ATMs and QR Codes are rising.
Crypto Market Rally, New Market Cap ATH Set as BTC, XRP Perform
Less than three weeks after the launch of the first Bitcoin ETF drove the crypto market into a frenzy, the market is already on another major rally. This most recent rally has helped the crypto market cross the $3 trillion mark for the first time ever.
Since October 20th, the global crypto market cap has increased by 14.5% to peak at over $3 trillion. Some of the major movers in the rally were Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). The price of BTC rose by as much as 5.5% on Monday 8th to reach $66,339, nearing its previous record of around $67,000.
The price of XRP jumped by more than 7% to peak at $1.30, its highest point since September. Ether also advanced by as much as 3% to a new high of $4,768. Cardano (ADA), Solana (SOL), Polkadot (DOT), and Dogecoin (DOGE) were among the other top-performing Altcoins.
Flipsider:
- Most of these gains have been relinquished, as the market sees brief corrections.
- The global market cap is now valued at $2.84 trillion as major cryptos decline slightly.
The one-week market cap chart for the Global Crypto Market. Source: Tradingview
Why You Should Care
The value of the crypto market is rising amidst growing interest, from the general populace, in new developments like NFTs and the metaverse.
Ethereum (ETH) Hits New ATH Amidst Plunging Gas Fess and Spiking Hash Rate
Leading the rallying crypto market, the world’s second-largest cryptocurrency, Ethereum (ETH), has reached a new all-time high. Rising by over 4% on November 8th, the price of ETH topped $4,762 for the first time ever.
The 48 hour price chart for Ethereum (ETH). Source: Tradingview
Maintaining an interday gain of 3%, ETH is now trading at $4,733.66, as of this writing. Ethereum has a market dominance of 19.5%, thanks to its $558.6 billion market cap.
As the price of Ethereum hit a new all-time high, the Ethereum community was treated to a major drop in the network’s gas price. Over the last week, the gas price of Ethereum has dropped by more than 35%, with the average transaction fees now standing at $37.19.
The plummeting gas fees have been linked with a decline in Ethereum’s trading volume, which has dropped from over $20 billion on November 2th, down to $16 billion at the time of this writing. While trading volumes plunged, on Monday 8th, Ethereum’s hash rate hit its highest ever point of 812,769 GH/s.
Flipsider:
- With the rise of meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), Ethereum is set to face more pressure as the competition for price intensifies.
Why You Should Care
Ethereum was previously predicted to hit $5,114 by the end of 2021. Taking into account its current performance, the upcoming 2.0 upgrade, and the hope for ETFs, ETH is on course to eclipse the $5,000 mark.
Infrastructure Bill Includes Concerning Crypto Tax Provisions
On Friday, November 5th, Congress passed a $1.2 trillion infrastructure package as part of President Joe Biden’s economic agenda. The historical Bi-partisan infrastructure bill, which aims to make life better for millions of Americans, contains a controversial cryptocurrency tax reporting requirement.
The bill, which was originally passed in August, now goes to U.S. President Joe Biden for his signature. However, the bill has become a source of concern for crypto investors.
The provision could mean that people performing a transaction valued at $10,000 or more, need to verify their personal information and record their Social Security number, state the nature of the transaction, and report the transaction to the government within 15 days.
Another aspect of the bill concerning the crypto industry would see all cryptocurrency brokers report all of their transactions under the current tax code.
Crypto advocates are concerned that the bill may include miners and other agencies that don’t directly facilitate crypto transactions without specificity in who the referenced brokers are.
Flipsider:
- Despite regulatory uncertainties, the mayors of New York and Miami have renewed their commitments to turning their cities into crypto hotspots.
Why You Should Care
If passed without amendment, lawyers have argued that the law could be almost impossible for crypto investors to comply with.
The FBI Warns That Crypto Scams Using ATMs and QR Codes Are Rising
The Federal Bureau of Investigation has warned crypto investors about the rise of a new type of scam. On November 5th, the FBI warned investors of the increasing number of criminals using physical cryptocurrency ATMs and QR codes to defraud people of their money.
According to the FBI’s public notice, these criminals disguise themselves as a government agency and request money from the victims in order to enter them into a lottery requiring a fee before the prize can be claimed.
These con schemes direct victims to insert their money into a crypto ATM, purchase cryptocurrency, and use the provided QR code to auto-populate the recipient address.
Bringing these scams to light, the FBI has promised to provide a QR code associated with the scammer’s cryptocurrency wallet.
Flipsider:
- American retail company Kroger (NYSE:KR) has confirmed that the press release touting their acceptance of crypto was faked by scammers.
Why You Should Care
The FBI has stressed the importance of remaining vigilant and not making payments to someone you have only spoken to online.
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