BitDigest - Tuesday June 22, 2021
FUD is back in crypto
India considers charging overseas crypto traders with e-commerce tax
Law maker in El Salvador’s opposition party is filing suit against country’s supportive bitcoin legislation
BTC dominance has returned to recent highs as investors return to the crypto safe haven
Crypto Fear & Greed Index
The Fear & Greed Index for bitcoin and other large cryptocurrencies has fallen to a 13-month low of 10 following further news from China. Over the past week, the index has dropped 74%.
Speaking with a Chinese miner who has repeatedly told me over the past years that the announcements are just hype and not impacting operations, the story yesterday was very different with the message being “we need to ship the machines back to USA. The China shutdown is real. We can’t re-start there.” Even CNBC’s Jim Crammer is running for the exits saying he “sold almost all of my bitcoin… When the PRC goes after something, they tend to have their way. … It’s not a democracy. It’s a dictatorship.”
This metric is a key gage of market sentiment, and the market is experiencing FUD.
What Banks Are Doing?
Good summary published by Bloomberg showing what crypto services top banks are offering:
The Headlines
India Could Impose 2% Duty on Overseas Crypto Purchases
India’s Revenue Service is discussing whether a 2% levy on foreign e-commerce payments could be imposed on crypto trades made on overseas exchanges.
Opposition Party Member Files Suit Against Bitcoin Law
An oppositional party member has been joined by a group of El Salvadorian citizens in filing a lawsuit against the Central American nation’s new “unconstitutional” bitcoin recognition law.
Bank of Russia 'Does Not Recommend' Crypto Investment
The governor of Russia’s central bank reiterated her negative position on “speculative crypto assets” saying that while the central bank “never gives investment advice, [in this case], the bank definitely does not recommend it.”
DCG to Buy $50 Million Shares in ETCG
Digital Currency Group announced plans to purchase up to $50 million in shares of the Grayscale Investment’s Ethereum Classic Trust (OTCQX: ETCG) – Grayscale is a fully owned subsidiary of DCG.
MSTR Buys Dip Again and Now Holds Over 100,000 BTC
📈MicroStrategy (Nasdaq: MSTR) has purchased 13,005 more bitcoin for an aggregate price of $489 million in cash bringing its total holdings to over 100,000 at 105,085 BTC.
🅱️ MSTR has purchased its bitcoin at an average price of $26,080 so this will be a key price level to watch in the coming weeks.
BTCM Delivers Miners to Kazakhstan
In response to domestic pressures, Chinese online gaming company turned crypto mining enterprise BIT Mining (NYSE: BTCM) has relocated 320 mining machines with a theoretical maximum total hash rate capacity of 18.2 PH/s to operations in Kazakhstan
Bitcoin IRA Adds Mobile Platform
Bitcoin IRA has launched a mobile app allowing users to easily buy, sell and swap digital currency assets inside their self-directed retirement accounts. The app is available for both Apple and Android devices.
Investment manager, VanEck has filed a new prospectus for the ‘Bitcoin Strategy Fund’ that will invest in bitcoin futures, and provide exposure to bitcoin through pooled investment vehicles and exchange-traded products.
EDPB Releases Final Recommendations on Digital Euro Design
The European Data Protection Board (EDPB) has prepared its final recommendation on the privacy and data protection aspects of a possible digital euro suggesting that “a very high standard of privacy and data protection is crucial to reinforce the trust of end users and should be considered a distinctive element” in the design process including “a high-level data protection impact assessment.”
Market Data
Crypto Companies in the US have Paid $2.5 Billion in Penalties
Blockchain data and analytics company Elliptic published a summary report of crypto enforcement actions by US regulators suggesting that while the “widely-held belief [is] that the cryptoasset industry is unregulated,” the reality is that US regulators have already imposed $2.5 billion in financial penalties on crypto businesses.
Exchange, Custody and Product News
Huobi has announced a new fiat-to-crypto gateway for its pound sterling users on its global exchange.
Thoughts on the Ecosystem
📺 DataTrek Research’s Nick Colas believes Fed activity is weakening crypto markets suggesting that a big part of bitcoin’s appeal has been the notion that the Fed has been asleep at the inflationary switch, and last week’s Fed moves shows the central bank is ready to take action.
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BitDigest is a weekday news update on digital currencies and blockchain technology for friends and partners of Parsons & Whittemore, a single family office based in Rye Brook, New York. Receipt of BitDigest is by approval of the Author. The commentary, analysis, opinions and recommendations in this newsletter represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in this newsletter is obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. Neither the Author nor any of the Author's affiliates make any guarantee or other promise as to any results that may be obtained from reading this newsletter. While past performance may be analyzed in this newsletter, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. The Author is not making a solicitation or offer to buy or sell any securities of any kind.