Hello again, and welcome to this week's edition of Overbit Weekly Round Up. Looking back on this week, it's impossible to ignore the crypto market's ongoing rally, which is exactly what will start out with covering today.
Bitcoin's ongoing recovery has put the largest cryptocurrency on track for its longest winning streak this year, a record not seen since December of 2020. Other coins, including second-placed Ether, rose, helping to boost the BloombergGalaxy Crypto Index.
"The current momentum is strong", and $45,000 is in sight. Still, a conclusive break above $50,000 "Will take some doing," Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange, wrote in a note Tuesday.
Bitcoin is still well below its mid-April high of nearly $65,000. Still, bulls appear to have taken advantage of recent positive comments from billionaire Elon Musk and Ark Investment Management LLC's Cathie Wood, as well as speculation about Amazon.com Inc.'s potential involvement in the cryptocurrency sector.
Even though a stock rout in China this week dented some investor appetite for risk, contributing to a drop in global stocks, Bitcoin and crypto markets continue to climb upwards - a testament to their strength right now.
To close out this week's edition of Overbit Round Up, we move over to some big tax-related news on the cryptocurrency front, coming out of Washington DC.
The new US infrastructure bill aims to raise $30 billion through cryptocurrency taxes. A bipartisan infrastructure measure introduced in Congress seeks to earn $28 billion from cryptocurrency investors by imposing new information reporting requirements on exchanges and other parties.
A draft copy of the bill provided with CoinDesk stated that any broker who transfers any digital assets would be required to file a return under a modified information reporting framework. According to the proposal, digital assets are "any digital representation of value... stored on a cryptographically protected distributed ledger" or equivalent technology.
In its definition of brokers, it also encompasses decentralized exchanges and peer-to-peer marketplaces. A different explanation of the bill clarified that cryptocurrency are considered a subset of the larger digital asset umbrella.
According to the document, "the provision includes amending the definition of broker to reflect the realities of how digital assets are purchased and sold." "The clause also makes it clear that broker-to-broker reporting applies to all transfers of covered securities, including digital assets, within the meaning of section 6045(g)(3)."
According to Kristin Smith, executive director of the Blockchain Association, the draft language may require many individuals who interact with cryptocurrency to begin reporting their transactions. "We interpret this to mean software wallet developers, hardware wallet manufacturers, multisig service providers, liquidity providers, DAO token holders, and possibly even miners," she explained.
The US Senate may conduct a test vote as early as this Wednesday.
That's it for this week's edition of Overbit.com's Weekly Round Up, and we'll see you next week!