Cryptos Up Despite Prospect of Broad Taxation: Markets Wrap

Bitcoin traded above its 200-day moving average line despite efforts to change broad industry taxation language in the infrastructure bill.

article-image

Source: Shutterstock

share

key takeaways

  • Alchemy Pay is set to launch its crypto-linked banks card which will support 40 cryptocurrencies.
  • Ether has had a return on investment of 49.04% over the past month, according to Messari.

Ethereum and bitcoin continued their near-term bull run on Monday afternoon after a bipartisan compromise around a crypto-related tax provision in the infrastructure bill was blocked in the Senate.

Instead, the bill will proceed as originally written, likely passing the Senate with language that includes broad taxation of the digital asset space. It requires cryptocurrency ‘brokers,’ an undefined term, to disclose trader information, including gains made on investments, transfers and transactions of more than $10,000, which the IRS already monitors. The provision is estimated to bring in $28 million in tax revenue, Blockworks reported on August 7.

Prices continued to rise but simmered down after traditional markets closed following the news.

In the past, regulatory scares have sparked massive sell-offs for crypto. However, bitcoin traded above its 200-day moving average line on Monday. BTC has a return on investment (ROI) of 37.1% over the past month, according to Messari

The largest cryptocurrency by market value now faces resistance at $50,000. More ether continues to burn after the launch of the London hard fork on Thursday. After trading above a two-month high last week, the cryptocurrency continues to shoot up. Ether has a ROI of 49.04% over the past month, according to Messari.

DeFi

  • Uniswap is trading at $28.21 with a total value locked of $4,997,306,338 up 9.1% in 24 hours at 4:00 pm ET. 
  • Chainlink is trading at $24.58, advancing 7.6% with trading volume at $996,367,778 in 24 hours at 4:00 pm ET.
  • DeFi:ETH is 29.2% at 4:00 pm ET.

Crypto

  • Bitcoin is trading around $46,293.37, up 5.83% in 24 hours at 4:00 pm ET.
  • Ether is trading around $3,169.98, advancing 6.16% in 24 hours at 4:00 pm ET.
  • ETH:BTC is at 0.0684, down -0.40% at 4:00 pm ET.
  • VIX is up 3.53% to 16.72 at 4:00 pm ET.

Insight

Clearblock Insights co-founder Cody Ryan weighed in on Monday’s crypto markets activity.

“The industry’s collective energy has been laser focused over the last 72 hours on the implications of the infrastructure bill. However, the market continues to push higher with BTC now flirting again with key resistance levels around $45K in the face of continued regulatory uncertainty,” Ryan said to Blockworks. “Moving our scope outside of DC and the fluid political headlines, the on-chain metrics help paint a picture of just how bullish and energized the market is. BTC reclaimed its 200-day moving average today for the first time since the epic May sell-off earlier this year.”

ETH:BTC, BTC and ETH over the past month. Source: TradingView

Commodities

Oil prices dipped on Monday amid Delta variant concerns.

US crude oil fell to a two-month low as it toppled to $66 per barrel. As governments react to surging Covid cases, investors worry restrictions may weaken demand for the commodity. This is mostly due to lack of travel as countries mandate lockdown orders. 

  • Brent crude is down to $70.21 per barrel, declining -3.04%.
  • Gold fell -0.01% to $1,814.

In other macro news, job openings rose with those quitting jobs, indicating a continued US labor shortage, Blockworks reported on Monday. The number of job openings touched over 10 million, according to the US Bureau of Labor Statistics.

Insight

US Chief Executive Officer at Currency.com Steve Gregory weighed in on commodities and their relationship to cryptocurrencies in the markets.

“Meanwhile, in traditional markets, oil and gold saw sharp falls bringing into question whether gold remains a popular safe-haven asset or is crypto emerging as a hedge against inflation and the government’s looming threat to unwind stimulus,” Gregory said in a note to Blockworks. “It will be interesting to see how this story unfolds. In the meantime, we expect the continuation of the [crypto] bull market in the immediate term.”

WTI Crude and Brent over the past five days. Source: TradingView

Equities

  • The Dow was down -0.31% to 35,099.
  • S&P 500 declined -0.1% to 4,431.
  • Nasdaq had a slight uptick of 0.18% to 14,862.

Fixed Income

  • US 10-year treasury yields 1.319% as of 4:00 pm ET.

Currencies

  • The US dollar strengethened 0.17%, according to the Bloomberg Dollar Spot Index.

In other news…

Alchemy Pay announced the launch of its crypto-linked card, Blockworks reported.

The Singapore-based company’s most recent product will support 40 cryptocurrencies, which can be linked to notable digital wallets like Paypal. Payment methods are set to be accepted by merchants across Mastercard and Visa networks.

We’re watching out for…

  • US consumer price index (CPI) data will be released on Wednesday
  • OPEC: Oil Market Report is due on Thursday

That’s it for today’s markets wrap. I’ll see you back here tomorrow.

Want more investor-focused content on digital assets? Join us September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket. Buy it now.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).jpg

Research

With $13B in tokenized assets, strong institutional partnerships, and a clear first-mover advantage in the RWA space. The platform's methodical approach to regulatory compliance, coupled with its hybrid public-private architecture, positions it uniquely to capture significant market share in the emerging tokenization landscape. While current fee generation primarily stems from metadata transactions, the planned launch of Figure Markets, major exchange listings, and comprehensive market-making initiatives in 2025 could serve as powerful catalysts for growth.

article-image

Perena is built on the premise that as stablecoins proliferate, liquidity could fragment, and stablecoins aren’t useful if they aren’t liquid

article-image

From hackathons to trading tools and DAO governance, AI agents are redefining how we build and innovate

article-image

CME’s large bitcoin contracts are so big that investors are turning to micro bitcoin contracts

article-image

The third-largest stablecoin is going multichain for the first time in its seven-year history

article-image

Nano Labs’ news release notes confidence in bitcoin being “a reliable store of value amidst its rising global adoption”

article-image

Several big companies report third quarter earnings this week, likely moving markets