Friday, December 10, 2021

Congressional Crypto Hearings Wrap-up | Crypto Market COFFEE BREAK Report 12.10

Overview

  • Crypto Market Insight: 200 EMA | Bitcoin Dominance | Congressional Hearings
  • Major Crypto News
  • NEWBIES’ Lesson of the Day: What is a non-fungible token (NFT)

Market Insight

Bitcoin continues to test the 48-50k support as volume begins to lose steam. This key support will likely be retested varies times the coming days. The support is in-line with 200 Exponential Moving Average (EMA) which historically indicator of overall market trend. (Above-bull, below-Bear). If Bitcoin holds the 200 EMA, an extended accumulation is likely after a strong ousting of retail positions during the extended drawdown.

BTC 1D Chart

Bitcoin Dominance

It will be interesting to see if Bitcoin Dominance hits new lows or if it decides to break its downward trend. Its generally expected for dominance to rise during uncertain market conditions but that was not the recent case. Investors are becoming more comfortable holding some altcoins like Ethereum during these conditions. Dominance currently sits at 41.49%.

Bitcoin Dominance

Inflation Data

The U.S. bureau of Labor Statistics released the CPI data this morning putting U.S. inflation at 6.8% for the last 12 months. The CPI measures the prices paid by U.S. consumers for goods and services. Inflation is at its highest levels since 1982.

https://preview.redd.it/rkqljmqdhu481.png?width=726&format=png&auto=webp&s=42a8586f12ef0d00885e68f3c0ec7222f864186d

The Federal Reserve that printed 40% of all US dollars into existence this past year is holding talks on December 14 & 15 to discuss bond purchase tapering and interest rate hikes. Crypto investors should keep a close eye on the outcome of the meetings. Widely considered a speculative asset, crypto will be strongly affected by Fed policy changes. Another related factor is the rising number of Covid cases that will likely only get worse as US enters winter. The Fed began aggressive monetary policies around the time lockdowns began in 2020.

Congressional Hearings

     The congressional hearing on Wednesday that featured some keys names in crypto such as FTX CEO Sam Bankman-Fried, Circle CEO Jeremy Allaire, and Bitfury CEO Brian Brooker were a success according to the participants. Excluding a few Congressmen, there was a sentiment of progress. The CEOs voiced support for a new regulatory platform for cryptocurrency that wouldn’t destroy its progress in the US. Brian Brooks of Bitfury was the MVP of the hearings. Highlights of the hearings.

Senator Representative Brad Shermon, who appeared to prepare for the wrong type of hearing, added some comedy to the event. Watch minute 2:30.

Follow more of my stories and research on Medium or Subscribe to this report on Substack

Major Crypto News

Meta’s Whatsapp to will Trail Novi Digital Wallet. This is a surprising move for a Meta owned platform. It’s generally accepted that Meta is aiming to propagate their own digital assets ecosystem.

Solana had a bout of congestion on their network on Thursday morning that brought the high-speed network to a crawl and began raising questions about reliability.

The International Monetary Fund (IMF), a financial institution focused on maintaining worldwide financial stability, outlines the need for a “Global Approach” to crypto regulation.

Crypto wallet maker Ledger launches crypto debit card for US and a few European customers.

NEWBIES’ Lesson of the day

What is an Non Fungible Token (NFT)

Read in conjunction with yesterday’s report

Characteristics of NFTs:

  • Non-Fungible
  • One of a kind
  • Cannot be altered
  • Will always exist on the blockchain
  • Non-Fungible
  • A blockchain token

Non-Fungible and One of a kind

Every item on planet on fungible or non-fungible. A loaf of bread is fungible. There are numerous loafs of Wonderbread at the store and It really doesn’t matter which particular one you buy. An example of a non-fungible item is a famous sculpture. The sculpture can be duplicated but it will be never have the value of the original.

Cannot Be Altered

When you create an NFT and attach it to the data that mints it on the blockchain, its in a complete state. It will never be altered again. Imagine the Mona Lisa in an indestructible box.

Will always exist on the blockchain

Just like bitcoin or any other cryptocurrency, once a block of data is minted, it will always exist on a that blockchain.

A token

Bitcoin, Ethereum, Hamstercoin and NFTs are all tokens. What sets an NFTs apart is that it is ONLY token one of it’s kind. Each Bitcoin is also unique in a sense but the value is identical despite each coin’s uniqueness.

I hope you enjoy your weekend and thanks for reading!

TraderGabi

Follow more of my stories and research on Medium or Subscribe to this report on Substack


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