Binance’s CEO sees this bear market as normal market behavior. The IRS launches a new initiative to punish those who avoid paying their crypto taxes. And who uses more energy? Banking or Bitcoin? All that and more on tonight’s nightly crypto news wrap-up.
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Let’s get it! What do you make of what we’ve been seeing then in the crypto markets over the last few days and how aligned it is to the tightening financial conditions we’re seeing globally? I think it’s pretty normal for markets to go up and down. It’s just normal market fluctuations. We see this in stock markets too. You know, Netflix is down 70-something percent as well. So it’s just part of a normal market behavior. Earlier today in an interview with Bloomberg, Binance’s CEO CZ, who’s the richest man in crypto, gave an insightful take on today’s market by saying that this bearish action is normal market behavior. In the interview, he stated that this is his third bear market.
So, if this is your first bear market, know that these fluctuations are the standard and it’s nothing out of the ordinary for crypto. See this as an opportunity for your future. The patient will prevail. Due to CZ’s experience, while other companies are laying off their crypto employees, he has reserves set in place to hire more. He knows that the market will recover in due time and that Newton’s laws apply to crypto just as well as gravity. Yes, the market conditions are different than Bitcoin’s previous bear markets, so although recovery is inevitable, the timeline is uncertain. Yesterday, the Fed hiked up the interest rate by 75 basis points, which is the biggest interest hike in 28 years. This hawkish approach has hurt not just crypto but the entire financial sector. There are four more meetings to go this year, and the plan is to continue to hike up the basis points at every remaining meeting. The next one begins on July 26. The quantitative easing that will take us to the top of the next bull cycle has to come after this period of quantitative tightening. That’s the game. How has this affected the charts?
Let’s jump in and do a little market watch here. We’ve got Bitcoin coming in at $20,421. Down 10% on the day Ethereum coming in at $1,071 Down about 13% on the day Let’s go ahead and check our top losers. We’ve got RUNE, or THORChain, down about 17%. ApeCoin down 17% Polkadot down 15% And Aave down 14% Guys, we are getting mixed signals on the charts. We do have bullish divergences starting to form on the daily timeframe, which is a bullish signal that does not come around very often. However, we do have a yellow X confirmed on the 6-hour chart, which is a very bearish sign. This can bring us down a lot. So be careful out there. Lots of mixed signals. Make sure you use your stop losses and good risk management.
I’m going to start off by saying this. Crypto is not a dark web deity that you can use to avoid paying taxes. I know paying taxes is a pain in the butt. And I know it’s not fair that we risk our money for the government to make a profit. But unfortunately, that’s the reality. Paying your taxes is much better than getting hit for tax evasion. That is not a road you want to go down. I’m telling you this because the IRS recently launched Operation Hidden Treasure to put the pressure on those who are trying to avoid Uncle Sam. Trust me. He’s not a guy you want to play a game of financial hide-and-seek with. He knows every spot in the house. Using transactions below $10,000 won’t help you. Using shell companies or third parties won’t do it either. Privacy coins are great, but when you want to convert it to cash money, there’s no way around it.
Most importantly, I don’t want to see anyone in the BitSquad get in trouble. It’s not worth it, guys. The average jail sentence for tax evasion is 3-5 years. Don’t miss out on next bull run’s gains because you didn’t pay your taxes from this bull run. Despite all environmental FUD and the letters from the House members complaining about Bitcoin’s power consumption, a recent report by IT engineer Valuechain founder Michel Khazzaka states that the banking sector uses 56 times more energy than Bitcoin. Of course, the media and the legacy system wants to stifle crypto by pointing out the power it consumes. But the four years of Khazzaka’s research tells a different story. A story that the legacy system doesn’t want people to read. The report cites that the Bitcoin Lightning layer proves to be up to a million times more energy efficient per transaction than the legacy instant payment system.
Khazzaka told Cointelegraph that Bitcoin Lightning and Bitcoin in general are really great and very efficient technological solutions that deserve to be adopted on a large scale. This invention is brilliant enough, efficient enough and powerful enough to get mass adoption. Instead of villainizing the opponent, like the media usually does, Khazzaka believes that Bitcoin could help the banking system if they decide to adopt it. He stated that if they are courageous enough, blockchain technology will improve their efficiency and scalability. Obviously there are those out there who will use any excuse to try to stop Bitcoin. But is that because they really care about the environment or because they have chips on the table that they don’t want to lose? Take that into consideration next time the media declares another environmental FUD war against crypto.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/TIa_E1puDa8