The crypto market is galloping north. In view of a controversial legislative initiative in the USA, this is all the more astonishing.
The Bitcoin bulls have a tailwind. Not only is the trend undoubtedly up since the local bottom at just under 30,000 US dollars (USD) – established on July 21st – the upswing is even gaining steam. Because with meanwhile 47,000 USD, Bitcoin (BTC) posted its strongest daily performance for months on Monday, August 9th. The No. 1 cryptocurrency rose by up to USD 5,000 and is trading at USD 45,600 at the time of writing. Daily performance: 5 percent up. Market capitalization has also already made up for much of the potential destroyed in the mid-cycle dip and is on the home straight back towards the USD 1 trillion mark. Currently, the BTC market is worth a little over $ 858 billion.
The summer slump also seems to have been overcome on the market as a whole. The accumulated market cap of all cryptocurrencies is currently around 1.9 trillion USD and is 4.5 percent more than the previous day. So it’s back to normal in crypto-land.
It is also interesting that the Puell Multiple can be read again as a quite reliable ground signal. Because only shortly after the indicator touched the green zone at the end of June, the local bottom was found. The Puell Multiple is obtained by dividing the market value of the daily BTC issued by the 356-day average of the daily market value. The green band between 0.5 and 0.3 indicates buy signals, which in the past have often turned out to be lucrative entry opportunities.
It also looks bullish in the timeline. If you apply the template from previous halving cycles, there is still clear potential upwards. Because so far BTC has “only” increased twenty times the cycle low, around 3,000 US dollars. In era two it was 100 times as much, in era one it was even 200 times.
Infrastructure Bill is about to be voted on
The bullish behavior of the crypto market is all the more astonishing in view of the hot debate about the so-called Infrastructure Bill. For some time now, the US crypto community has been debating a new draft law, the content of which provides for a much more unpleasant regulatory environment for crypto services. The most controversial is a clause according to which certain service providers are defined as brokers, even if their business model has nothing to do with that of a broker. According to the current version, this could include proof-of-work miners and node operators. The problem with being classified as a broker is that it forces companies to prepare a so-called 1099 tax report for all customers. However, the companies do not have the information required for this at all.
The Senators Pat Toomey, Cynthia Lummis and Rob Portman had tried to at least exclude miners and proof-of-stake node operators from the draft. The addition would have required a unanimous approval from the Senate. The amendment ultimately failed due to the dissenting vote of Senator Richard Shelby, who had tied his approval to the condition of including a budget of USD 50 billion for military infrastructure. The vote on the bill will in all likelihood take place this week. The text of the law then has to go through the House of Representatives.