Daily Digest 10/6

Insight on the biggest news and charts that provide context for whats going on in the market today.

Cryptocurrency continues to grow not only in the US but around the world. While adoption is great it also means that bad actors can be popping up trying to separate you from your money.
Elizabeth Warren and Deborah Ross have introduced The Ransom Disclosure Act which would require ransomware victims to disclose information to the Department of Homeland Security.
“My bill with Congresswoman Ross would set disclosure requirements when ransoms are paid and allow us to learn how much money cybercriminals are siphoning from American entities to finance criminal enterprises — and help us go after them.” Said Warren.
We will continue to see more bills and laws introduced in the coming years as the government continues to try and regulate and bring clarity to what is and is not a security and other similar issues.

The CEO and CIO of Soros Fund Management disclosed that the fund is holding some cryptocurrencies but “ not a lot”. She also says that they are interested in crypto beyond an inflation hedge.
Fitzpatrick did not say which coins they are currently holding and thinks the coins are not as interesting as what can be done with DeFi as a whole.

“I’m not sure Bitcoin is only viewed as an inflation hedge,” said Fitzpatrick. “I think it’s crossed the chasm to mainstream.”
The Soros Fund was given the green light in 2018 to start crypto trading and they have also invested in companies like LUKA and NYDIG that are involved in building crypto infrastructure.

Brazil is looking to become the next country to make BTC legal tender after El Salvador made the transition just last month.
Brazil has approved Bill 2.303 / 15 which will regulate crypto and digital currencies. Deputy Aureo Ribeiro has proposed to update that bill to include BTC as legal payment for the country.
As far as being crypto friendly Brazil is close to the top of the list even though it is not currently regulated by the country. Brazil already has 4 ETFs focused on cryptocurrencies and HASH11 is already one of the most traded ETFs in Brazil.
The president of Brazil has also said the country aims to release a Central Bank Digital Currency (CBDC) in 2022.

Open interest is up across the board today as nothing but good news and positive sentiment has been coming out for BTC and crypto.
Today's announcement by the Soros fund and last week's announcement by Gary Gensler to have “ no intentions of banning crypto” have driven prices up to start the month.

The negative of prices rising this fast for some investors is that their short positions have been liquidated to the tune of $12+ million so far today. In any major swing there will be liquidations of the bulls or the bears that are betting on future prices of these digital assets.
This is a great way to trade when the market goes stagnant but is also a way to lose more money if you are not careful.

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