6/3/22 FAL Weekly Digest
The FAL Weekly Digest is a source for this week’s biggest cryptocurrency-related news and updates. This newsletter features excerpts and links to this past week’s biggest news articles written by members of FAL Consulting’s writing team or gathered from other listed sources.
The crypto market is still feeling the effects of the Terra crash. More regulation is on the way, especially after recent studies show that crypto related crime rose 79% in 2021. NYS passed the bill on crypto mining; now the bill just needs to be signed by the governor of New York to be official.
Market
This week BTC rallied to highs of $32,194 on 05/31 before dropping to around $29,700 on 06/01 and is now struggling to maintain support above $29,300. The MFI is now bordering oversold territory as it seems to be settling into a neutral pattern. This could be a good sign for price action, as it could mean the MFI may prepare to trend upwards soon. The MACD is currently trending downwards on both its EMA lines as well as its momentum waves.
Global Cryto Marketcap: $1.22T
24h Volume: $70.4B
BTC Dominance: 46.3%
ETH Dominance 17.5%
Crypto-related crimes rose to new heights in 2021, estimating around $14B in damages or illegal use. This is an increase of 79% from the $7.8 billion in 2020, representing only 0.15% of the 15.8 trillion in crypto transactions volumes, the lowest ever.
For comparison, in 2019 the illegitimate share of all cryptocurrency transactions volume was 3.37%, and .02% last year, with the total volume of transactions spiking by 567% from 2020 total, according to Chainalysis.
NYS passes bill on crypto mining and the creation of a crypto task force
The NYS Senate passed the bill imposing a two-year moratorium on new crypto mining firms using carbon-based energy sources. After passing the Assembly late April and now passing the Senate, the only thing left for the bill to become law is for the NYS governor (Kathy Hochul) to sign the bill.
Bitcoin Mining Policy Being Researched By The Biden Administration
The current presidential administration is looking into regulations of proof-of-work (POW) cryptocurrencies with the goal being to curb its environmental footprint and energy consumption, according to a report from Bloomberg Law.
Terra Luna 2.0
Upon release of Terra LUNA 2.0 on 5/28/22, the price opened at just under $20 and immediately crashed to lows of $3.93 in about 5 hours.
South Korean prosecutors summoned all Terraform Labs employees to investigate whether they were aware of a potential collapse before it occurred.
After Binance listed the updated version of the token, it shot up to over $10. At the time of writing, LUNA is currently trading at $6.48.
Two of the largest exchanges are reducing their staff
Gemini announced that they cut 10% of its workforce with the main reasons being the ongoing crypto winter and current macroeconomic and geopolitical turmoil.
View full announcement on Gemini Blog
Coinbase announced that they would be extending the hiring freeze for the foreseeable future and would even be rescinding a number of accepted offers.
Coinbase will be providing some sort of severance or financial compensation package to those effected and will be giving them access to a “talent hub” that is being established. The talent hub will “allow them to opt-in to receive additional support services including job placement support, resume review, interview coaching and access to our strong industry connections.”
View full announcement on Coinbase Blog
Robinhood announced layoffs in late April, ahead of its first-quarter earnings release.
None of our posts or newsletters are meant to be taken as financial advice.
