Dear Teroxx Community,
This week we saw a market of digital assets, which experienced slightly negative movements in line with the global financial markets in the wake of the inflation data and key interest rate decision of the FED, in the US.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
Following the global reporting requirement for profits from cryptoassets under the Directive on Administrative Cooperation (DAC8), more regulations are coming to the crypto industry. The new anti-money laundering regulations bring new rules for all crypto service providers, trading portals and companies that accept cryptos as a means of payment.
Associated with this is also a limit on cash payments to a maximum of 10,000 euros. Germany had always been critical of the planned cash cap within the EU and had partially abstained from voting on the regulations. In this context, German Finance Minister Christian Lindner (FDP) described cash as an expression of privacy and data protection.
Despite the abstention, the cap in its planned form will presumably nevertheless also be implemented in applicable law in Germany. Individuals and companies trading in metals, stones, cultural goods, jewels or watches will then also have to comply with the new rules.
The anonymous buying or selling of cryptoassets should thus become more difficult. Money laundering via the layering of income in companies as well as the laundering of illegal money via cryptos by trading with jewelers or goldsmiths is to be prevented as a result, comments Zbyněk Stanjura, Minister of Finance of the Czech Republic, on the planned set of regulations.
Ethereum addresses that had been dormant for years unexpectedly transferred 22,982 ETH.
The ETH came from the Genesis and Poloniex platforms. Peckshield blockchain investigators found that the last movement of these ETH tokens took place in October 2018, when the price of ETH fluctuated roughly between $190 and $230. On the day of the transaction, the price was close to $1,200 per ETH. This illustrates that even in negative market phases, there are still market participants who hold profitable positions and close some of them.
For Bitcoin, only one variable needs to turn positive for the next uptrend to take off, according to veteran crypto analyst David Puell.
Puell, the creator of the eponymous Puell Multiple metric, appropriately argued yesterday, December 17, that the ongoing downtrend could soon be over.
While many crypto analysts are warning of a collapsing bitcoin price in the short term with retracements to $12,000 or less, there are nevertheless positive voices as far as the medium-term price trend is concerned.
For Puell, the on-chain metrics suggest that two of three variables are already set right for the bear market to turn back into a bull market.
First, Long-Term Holders (LTHs) – that is, long-term investors – continue to hold on to their bitcoin investments despite massive losses of up to 70% from the last record high.
Second, short-term “speculators” are being hit particularly hard by current prices. These “tourists” have therefore already almost completely left the market again.
“On-chain, three conditions must be met for an uptrend: 1.) Long-term investors holding; 2.) Heavy losses for short-term speculators; 3.) A widespread increase in network activity,” as the expert notes on Twitter. To which he adds, “I personally see 1 and 2 already, but there’s still room to go on 3.” In addition, the slowly improving macroeconomic situation and an increasing “immunization” against the contagion of the domino effect in the crypto industry could provide further tailwind to turn things around soon.
Technical term of the week
Crypto Grow feature in Teroxx app: Describes the possibility to easily earn returns on held coins in the Teroxx wallet app. For USDC, Ethereum and Bitcoin this option is available. The contracts have different maturities and yields. If you want to hold these assets for the long term, you can actively earn a return on these assets through this feature and thus profit!
Digital Asset Markt
The last inflation data release and the last FED rate decision were on the agenda last week and determined the global financial market developments. Thus, the week began uneventfully, as all market participants waited for the announcement of the data. Inflation declined more than expected, leading to forecasts that the FED will provide “easing” in the key interest rate hike. This occurred, provided for temporary positive markets, however, the FED head Powell cashed in this sentiment again through his speech and sell-offs and negative market structures followed. As a result, the markets had to let slightly bounce on a weekly basis, despite good data.
Bullish outlook: A relaxed market situation around the holidays could provide for a small upswing.
Bearish outlook: Lack of volume and negative market sentiment could make for slightly negative developments in the markets.
