Welcome to the coin bureau weekly crypto review here are this week’s top headlines in the crypto news, crypto, stats and facts. New reports reveal the depths of demand for crypto from individuals and institutions. Here’S what they say – altcoin announcements, stacks polygon and cardano – are set for a wild week with all three projects expected to undergo important upgrades and developments. Will they pump or dump in response bitcoin mining, bonanza, bitcoin’s hashrate recovers, as bitcoin mining companies stack their own supply. What does this mean for the crypto market?
Jack dorsey doubles down on btc after leaving twitter and changing the name of his second company jack sets his sights on mining and regulation. Why this move comes just in time. Tonga’S new legal tender, the small island kingdom, teases btc as its new currency, while el salvador’s dream of a bitcoin city approaches reality which countries will be next to take the orange pill usdt in every country, argentina, brazil and turkey all adopt stable coins as their local Currencies collapse is this: the beginning of a bigger trend: inflation in every nation, central banks inch closer to increasing interest rates to counter record levels of consumer and producer prices. Is this the beginning of the end and a closer look at what comes next in this week’s crypto market forecast, all this and more in just a moment good morning afternoon or evening, thank you for tuning in my name is guy, and what you’re about to see Is educational content, not financial advice? You can find any topics you’re looking for using the timestamps in the video timeline and now for today’s top stories.
Last week we saw a slew of surveys and studies come out which suggest that the demand for crypto has never been higher. The first is from a financial advisory firm, called edelman financial engines, whose founder rick edelman forecasted that at least a third of americans will be holding btc by the end of 2022. Rick emphasized that this statistic is not a stretch because a quarter of americans already hold btc according to edelman’s market statistics. A second survey was shared by visa two days later, and it found that about a quarter of small to medium-sized businesses around the world plan. On accepting cryptocurrencies as payments over the next year, this complements a study conducted by visa last summer, which found that a staggering 60 percent of consumers would use crypto to pay for goods and services, even those who do not hold it yet.
The third survey we recently saw was released by cryptocurrency exchange wobi, and it suggests that seven in ten crypto holders first invested into this emerging ecosystem. Over the last year. The same survey found that nearly half of all crypto holders know next to nothing about cryptocurrency, which explains the pandemic of paper hands we’ve seen in the crypto market lately. It also explains why so many crypto holders invest in coins and tokens with low sticker prices, regardless of their market cap. As it so happens, a few of the cryptocurrencies in this category could be on the cusp of a very green week.
The first cryptocurrency on this list is staxx, which is scheduled to release a one-stop, defy shop on its blockchain today and may be live by the time. This video hits the tube for those unfamiliar stax is a sort of smart contract compatible side chain for bitcoin, and it recently became the biggest project building on bitcoin by almost every metric. Now, unfortunately, for stacks, it’s based in the united states and decided to do everything by the book straight out the gates. As a result, the stx coin has had a hard time listing on u.s exchanges, despite its creators, claiming it meets the arbitrary threshold of sufficiently decentralized.
This means stx may have a hard time rallying in response to the news, but mark my words once stx lists on a us exchange. It will moon the second cryptocurrency expecting a big upgrade. This week is polygon, which happens to be ethereum’s leading side chain tomorrow morning. Polygon will be pushing its own eip 1559 upgrade, which will introduce partial transaction fee burns to the polygon pos chain. The deflationary pressure created by the burns could be rocket fuel formatic, especially since there’s consistently high demand for the token from millions of polygon users.
That said, it’s unclear whether it will be enough to offset the constant cell pressure coming from the polygon foundation, which has spared no expense in acquiring other scaling related crypto projects. Last but certainly not least, we have cardano, whose ada coin has already begun rallying. In anticipation of a major milestone, if you watched my most recent video about my top 10 crypto predictions for 2022, you’ll recall that i predicted ada will rally when cardano’s overdue, defy dapps start to deploy over the weekend. Cardano’S sunday swap officially announced that its decks will be deploying this thursday and the response was positive, to say the least. Assuming sunday swap’s launch goes as smoothly as expected.
Ada will likely continue to pump but be aware that any unforeseen issues could suck the momentum out of this upward move. The same could happen if btc suddenly begins to pump, and it looks like that could be a very real possibility as well. As i mentioned in last week’s crypto review, bitcoin’s hashrate aka mining power took a big blow after the entire country of kazakhstan went offline amid ongoing protests. It now appears that most of these bitcoin miners are back online as bitcoin’s hashrate has basically recovered and is once again close to hitting all-time highs. Now, bitcoin’s hashrate tends to rise and fall in tandem with price, which is why it’s seen as an important indicator.
Among many crypto investors what’s interesting is that these days the bitcoin miners themselves have become crypto investors with companies like bitfarm buying the recent btc dip. This seems to be a rule rather than the exception, as revealed by glass node data, which shows that bitcoin miners have been aggressively accumulating btc over the last year. This is in stark contrast to the previous bull market when bitcoin miners were constantly selling their stash, which begs the question of what they’re waiting for according to research by one of the world’s largest asset managers. This stacking of sats is a sign that the current crypto bull market is far from over. If you’re curious about how high fidelity thinks btc could go before the crypto bull market ends, you can check out my video about that using the link in the description.
Speaking of crypto mining recent job postings by former twitter, ceo jack dorsey’s, second company, confirm it is looking to build next generation. Bitcoin mining machines, besides bitcoin miners block, which was formerly known as square, also wants to create a hardware wallet for btc. Best of all block is apparently planning to open source, its crypto hardware and software, which means it will be possible for anyone to create their own bitcoin mining rig and possibly hardware wallet as well. The end game of bloc’s efforts is to ensure that the bitcoin blockchain is as decentralized as possible, and the only way to do that is to make hardware and software instructions publicly available. Less than a day after block’s bitcoin job postings were discovered.
Jack dorsey sent an email to bitcoin developers announcing the formation of the bitcoin legal defense fund. If the name didn’t give it away. The bitcoin legal defense fund will provide legal and financial support to any bitcoin developers who find themselves on the receiving end of any unreasonable regulations. The email specifies that the bitcoin legal defense fund quote aims to minimize the legal headaches that discourage software developers from actively developing bitcoin and related projects such as the lightning network, bitcoin privacy protocols and the like. This suggests that the fund is ultimately looking to protect privacy, which many believe to be the next frontier for cryptocurrency, but maybe that’s just wishful thinking on my part now.
The reason why these headlines are so significant has to do with the current context around crypto development and mining, particularly in the united states. For starters, the infamous infrastructure bill was recently passed and it could pose exactly the kinds of legal problems for developers that the bitcoin legal defense fund is designed to protect. Against. More recently, u.s politicians confirmed that a hearing on the environmental impacts of proof-of-work mining will be held this thursday.
It’S not currently clear whether representatives of any crypto mining companies will be present, but if they will be then jack. Dorsey may very well be one of the attendees. If no representative from crypto mining companies is present, then it will be clear to everyone that the people in power do not want to hear the facts about proof of work’s use of power, which i discussed at length. In a video you can find in the description meanwhile, in the pacific archipelago of tonga, a former politician called lord fossitua, believes that the country could make btc legal tender by november. If the bill currently being proposed is passed, tonga would become the second country to make btc legal tender.
The first being obviously, el salvador like el salvador tonga, relies heavily on remittances. The difference is that tonga takes the top spot with 40 percent of its gdp, consisting of money coming from relatives or citizens overseas. As such, lord fosuteur argues that tonga has very little to lose and almost everything to gain by adopting btc as legal tender and many politicians in the country seem to agree. Lord fositeur went as far as to say that btc adoption could increase tonga’s gdp by 30 percent, especially if the country can leverage the geothermal energy being generated by the volcanoes on its various islands to mine btc. One of these volcanoes, coincidentally erupted just days after lord fosuteur tweeted tonga’s legal tender plans, and it looks like it will be quite some time before the country’s infrastructure is back up and running again.
This is the same risk. El salvador faces with its own volcanic mining operations, but so far everything there seems to be going smoothly and el salvador has even identified the volcano. It will use to power its ambitious bitcoin city. All that’s missing. Now is the legal framework to issue the bitcoin bonds.
The salvadoran government will use to fund the construction of bitcoin city, which president najib kelly says will begin this year, the 20 or so bills required to issue the bitcoin bonds are currently being processed, though no passing date has been defined. Yet when it comes to which countries could be next to adopt btc as legal tender, besides tonga, there are many contenders in latin america, and i discussed a few of these in my video about bitcoin adoption there. One of the countries i didn’t mention in that video was argentina, which now seems to be on the list. This is because strike ceo, jack malus announced that argentina has become the second country. That strike will support the first being el salvador.
Those of you who watched my video about el salvador’s bitcoin adoption might remember that strike is a remittance payments, app that leverages bitcoin’s, lightning network and the company was instrumental in rolling out el salvador’s own btc infrastructure. Oddly enough strike’s argentinian app doesn’t offer btc only tethers, usdt stablecoin and not on the lightning network, but on ethereum. What’S more is that this usdt can’t be converted into the local currency, though it can be withdrawn to external wallets. In a press release, the company explained that it’s looking to expand its peculiar services to other latin american countries in the coming year and explicitly notes brazil as one of them as it so happens. The mayor of one of brazil’s largest cities recently announced that the city will be allocating one percent of its treasury to btc.
Coindesk also reported that brazilians are using stable coins quote as never before. In the face of runaway inflation of the country’s own fiat currency, inflation is something every country that adopts btc has in common, and it’s a club that turkey is a top member of. Hence why the government banned crypto payments last year. Not surprisingly, turkish citizens have recently turned to usdt too, and it’s believed that as much as 30 percent of usdt’s trading volume is currently happening with the turkish lira, which is absolutely insane. This increase in usdt traffic seems to have attracted some bad actors as well, given that tether recently froze 150 million dollars in usdt in response to a law enforcement request.
The craziest part of it all is that stable coin adoption is accelerating dollarization, basically, the rate at which foreign countries are becoming dependent on the us dollar as their national currencies disintegrate. This might be a part of the reason why regulators in the united states have yet to crack down on stable coins. Much as they talk about doing so, and usdc’s continued growth is likely. Another reason now, in contrast to usdt usdc’s issuer circle, is based in the united states, and this gives the fed more power over what is done with these digital dollars. In any case, centralized stable coins are becoming more dangerous by the day, which is why i hold most of my dry powder in terror’s ust.
You can learn more about terra, using the link in the description anyways. The sad fact behind all this stablecoin adoption is that the value of the us dollar is also being inflated away at a record rate. The official inflation figures released last wednesday show that inflation stands at seven percent, though unofficial inflation figures are more than double that figure. Many investors were expecting that the markets could crash in response to such alarming inflation figures, because it would inspire the federal reserve to go ahead with its plans to accelerate the raising of interest rates, as i’ve mentioned many times before. This raising of interest rates would make debt more expensive, and, given that everyone is in debt, it could lead to some serious consequences in both the private and public sectors, since the government is massively in debt too, rather than crash in response to these inflation figures.
However, the markets rallied, including the crypto market – this is simply because december’s inflation figures were in line with investor expectations, and investors love certainty more than anything else, it seems the reason why the rally didn’t last is because of the producer inflation figures which were released. The very next day which showed that inflation there is running high at 9.7 percent. Now i’m no economist, but i reckon it’s reasonable to assume that this high inflation will be passed down to the consumer at some point. This sounds like disaster for the dollar, especially since there isn’t much, the federal reserve can do in terms of raising interest rates and i’ll be doing a deeper dive into what papa powell has been saying later this week.
All i’ll say for now is that this situation is very good for cryptocurrency the inflation of foreign fiat currencies is driving the adoption of stable coins overseas, which is simultaneously setting the technological rails required for actual crypto adoption. At the same time, the fiat currency backing these stable coins is collapsing, leaving dollar holders with no other choice than to fomo into btc or gold. Let’S just hope that if and when that happens, we won’t be slaves to the blockchain analytics companies that are tracking our every transaction. More about that, in the description. Turning to the charts, we can see that btc is still struggling to get above any major moving averages and has even managed to paint a death cross, although this is typically taken as a sign that a continued crash is imminent.
Bullish trends on longer term charts suggest that there is no cause for concern. Yet i will also add that death crosses and golden crosses are lagging indicators, meaning we could have already seen the worst of the crash signaled by the recent death cross. What btc needs to do now is decisively get back above the 200-day moving average, which serves as a significant zone of support from the top and resistance from the bottom for many swing traders more about that in the description, this week’s winners are secret network oasis network Near protocol phantom and ikomi you’ll notice, i’m using coin gecko now and that’s because coin market cap no longer filters top performers by the page you’re looking at, which brings all the coins to the top of the list. No thanks, anyhow, secret network’s scrt coin is rallying on the reveal of secret network’s shockwave initiative, which will look to onboard hundreds of projects and tens of thousands of users into its privacy preserving blockchain. The end game of shockwave is to turn secret network into cryptocurrency’s privacy.
Preserving hub something that’s made possible thanks to secret’s use of cosmos’s inter-blockchain communication protocol or ibc secret appears to be approaching a zone of price resistance around the 10 mark, where a lot of profit taking happened in the past. So keep that in mind before you accidentally buy the top. Next up is oasis network, and this is a crypto project. I’Ve seen in the news a lot lately, one of the headlines that caught my eye was the launch of oasis’s first dex, which attracted hundreds of millions of dollars in total value. Locked in its first days rose appears to have topped out for the time being, and it looks like it will drop down to the 50 cent range before preparing for another rally.
Fun fact, oasis network’s rosecoin happens to be one of the most held by institutional crypto investors and you’d know that if you’d watch, my video about masari’s, 2022 crypto predictions near protocol’s near coin is also held by many crypto funds, and it has also been in the Headlines a lot lately, one of the headlines that caught my eye there was near protocol’s 150 million dollar raise, which featured just about every crypto vc there is near’s rally has been unstoppable as of late, and it looks like it’s painting yet another bull flag on the Daily with a price target between 23 and 25, it’s been the same story for phantom’s ftm coin, which has been crushing it lately. As some of you will know, i hold ftm as part of my portfolio kudos to the other holders. Now, as far as i can tell, ftm’s current pump was caused by a proposal to the rv governance forum to deploy ave v3 on phantom, and you can learn more about the significance of that. Using the link in the description. Ftm is fast approaching its previous all-time high and its price action is at a point where it’s do or die.
Now. My admittedly amateur technical analysis suggests ftm could approach four dollars in the coming weeks. Lastly, we have ecomi, which is a project, i’m not all that familiar with. My first impression is that it’s a coin on its own blockchain with a large following which certainly checks two boxes on my list. However, things look a little more concerning when i dig down into community engagement and exchange support for the economy coin.
All i will say for this: one is: do your research and you can use my video to help you with that link in the description and that’s all for today’s coin bureau weekly crypto review. If you enjoyed it, you know what to do hit that, like button subscribe button and bell icon too, if you want more of me, head on over to twitter, tick, tock and instagram to get a sneak peek behind the scenes. If you join my telegram channel you’ll get the daily crypto updates you crave and signing up for my weekly newsletter is a great way to get the tools, tips and tricks. You need to get paid more. Breaking news is available on coinbureau.
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