• Ethereum (ETH) started the new year with a 90-day high of $1,674 on Jan. 21 and was trading at $1,572 as of Jan. 30th
• The Federal Reserve is expected to retain its stringent measures in order to keep the economy in check
• Ethereum will be ushering in a new era with the launch of the Shanghai upgrade (EIP-4895), transitioning from proof-of-work to proof-of-stake consensus mechanism

Ethereum Price Analysis

Ethereum (ETH) started 2021 off on a strong note, rising above $1,600 for the first time since February 2021. As of January 30th, ETH was trading at $1,572. The crypto community is now looking ahead to the Federal Reserve’s decision on interest rate hikes which could potentially impact digital assets such as Ethereum.

Factors Affecting Ethereum Price

Ethereum has become popular amongst developers, entrepreneurs and investors due its versatility and resilience. It boasts a wide range of capabilities from DeFi to gaming and data storage making it an attractive asset for many users. Factors that could directly influence Ethereum price include scalability issues and user adoption rates.

The Shanghai Upgrade

The impending launch of the Shanghai upgrade (EIP-4895) marks a new era in Ethereum development. After their September 2022 upgrade dubbed “The Merge”; ETH transitioned from proof-of-work consensus mechanism to proof-of stake validators requiring users to lock their funds indefinitely to become validators. However, this transition will change with the Shanghai upgrade allowing users to withdraw their funds after staking 32 ETH without having an indefinite lock up period.

Long Term Prediction

Analysts have predicted that long term gains could be seen for ethereum in 2023 given that current trends remain stable throughout 2022. If user adoption increases alongside successful upgrades then we may see further gains for ETH over the next few years however this all depends on how successfully these upgrades are implemented and accepted by users worldwide .

Conclusion

It is clear that ethereum has a bright future ahead if it can continue its current growth trajectory into 2023 and beyond. With successful implementation of upcoming upgrades such as The Merge and Shanghai we may see more stability for Ethereum allowing it potential gains as we move forward into 2023 and beyond.

• The Internal Revenue Service (IRS) has released a list of reporting obligations for US citizens regarding cryptos as the 2022 federal income tax return filing deadline approaches.
• The IRS requires taxpayers to answer all crypto-related questions, regardless of their activity, on three different tax forms.
• The IRS requires taxpayers to select “yes” if they acquire, transfer, or sell cryptos for any financial gain, including mining and staking.

The Internal Revenue Service (IRS) has issued a statement reminding all US citizens of the reporting obligations related to virtual funds or digital assets as the 2022 federal income tax filing deadline approaches. The IRS has changed the term “virtual money” to “digital assets” and they require taxpayers to answer all crypto-related questions on three different tax forms, which include the 1040 Individual Income Tax Return, the 1040-SR US Tax Return for Seniors, and the 1040-NR US Nonresident Alien Income Tax Return.

The IRS wants all taxpayers to select “yes” if they have acquired, transferred, or sold any digital assets for any financial gain, including through mining or staking. Therefore, taxpayers must record all income associated with their transactions involving digital assets in addition to marking the “yes” box. The only time a taxpayer may answer “no” is if they have been holding digital assets, have transferred assets between their wallets, or have bought crypto using fiat money.

In order to encourage taxpayers to comply with the new reporting obligations, the IRS has offered a number of incentives. They have also proposed changing the state constitution in Arizona to include taxation of digital assets as part of the 2022 ballot. The IRS has further announced that they will be launching an online portal to help taxpayers with filing their crypto taxes.

The IRS is determined to ensure that all US citizens comply with the reporting obligations related to digital assets as the 2022 federal income tax filing deadline approaches. They have provided clear instructions on how to answer the questions on the three different tax forms and have also offered incentives to encourage taxpayers to comply. They have also proposed changes to the state constitution in Arizona to include taxation of digital assets and will be launching an online portal to help taxpayers with filing their crypto taxes.

• BudBlockz is a crypto project running on the Ethereum blockchain that seeks to enhance operations in the cannabis markets.
• The project seeks to enable easy, global access to the cannabis market in a secure and decentralized way, through its utility token BLUNT.
• BudBlockz is looking to onboard over one billion users to web3 by 2025.

BudBlockz is the latest blockchain-based innovation on the verge of revolutionizing the multi-billion dollar cannabis industry. It is a crypto project running on the Ethereum blockchain that is set to enhance operations in the cannabis markets. The project seeks to enable easy, global access to the cannabis market in a secure and decentralized way through its utility token BLUNT.

The decentralized e-commerce platform created by BudBlockz brings together cannabis consumers and producers, allowing them to buy high-quality cannabis products using the BLUNT token. This token acts as a means of exchange between cannabis companies and consumers. It is designed to facilitate transactions at dispensaries, farms, factories, and other cannabis-related businesses. The total number of BLUNT that will enter circulation is limited to 420m.

To facilitate this, BudBlockz has developed a Non-Fungible Token (NFT) platform that offers an array of high-quality cannabis products securely and transparently. In addition, the project is also looking to enhance supply and logistics, to make the process of procuring cannabis products easier.

The creators of BudBlockz have an ambitious goal of onboarding over one billion users to web3 by 2025. This goal is achievable through the various innovations the project has achieved. As the cannabis industry continues to grow, it is likely that BudBlockz will become a major player in the industry.

• Twitter Coins has no crypto in sight, according to a recent leak by data miner Jane Manchun Wong.
• The payment system will use Stripe to handle fiat payments, but there’s no sign of adding crypto.
• Twitter is also developing an in-app rewards system, requiring Coins to unlock reactions like ‘Mind Blown’ and ‘Crown’.

Twitter, the popular social media platform, is currently developing a new purchase interface and menu item button dubbed ‘Coins’. Though the technology giant, headed by Elon Musk, is using Stripe to handle fiat payments, there is so far no sign of adding crypto. The news was uncovered by Jane Manchun Wong, a security researcher and data miner.

The latest development is part of Twitter’s monetization strategy and is designed to provide an alternative way for users to pay for services. In addition to the Coins purchasing screen, Twitter is also working on an internal rewards system. When users respond to posts with a ‘Mind Blown’, ‘Bravo’, ‘Bullseye’, ‘Gem’ or ‘Crown’ reaction, they will be required to pay with Coins. Nima Owji, a developer closely following Twitter’s inner payments system, has noted that Coins has nothing to do with cryptocurrency.

Stripe, a software company developing APIs for e-commerce and apps, will be handling the payment system. At the moment, the only accepted form of payment is the USD Coin (USDC), a stablecoin pegged to the US dollar. This may suggest that Twitter intends to keep their Coins system independent of cryptocurrency.

The introduction of Coins to the platform has been met with some trepidation. Many users are concerned that the system is intended to further monetize the platform, and could lead to an increase in pay-to-play content. Others are also worried that the system will lead to a greater level of control over what content is viewed and shared.

Despite these concerns, many users are looking forward to the introduction of Coins. They believe that the system could lead to increased engagement with content, as well as providing creators with an additional revenue stream. It remains to be seen how successful the Coins system will be, and whether or not Twitter will look to expand its payment options to include crypto in the future.

• Compass Mining was awarded a $1.5 million judgement in court following a legal battle with hosting provider Dynamics Mining.
• Dynamics had terminated Compass’ hosting contract in June after discovering Compass had not paid associated fees with a facility in Maine.
• Compass co-CEO Thomas Heller expressed relief that the US legal system had recognized Dynamics Mining’s infringement of Compass and its clients’ rights.

Compass Mining, a bitcoin mining hardware company, celebrated a victory on Thursday when a judge awarded them a $1.5 million judgement in court following a legal battle with hosting provider Dynamics Mining. The dispute began in June, when Dynamics discovered that Compass had not paid the hosting and power fees associated with a facility in Maine. In response, Dynamics terminated Compass’ hosting contract, something that Compass claimed was “totally false, without any factual evidence, and generate further damage to Compass.” They also accused Dynamics of “hostage-taking” their equipment.

However, on Thursday, the court sided with Compass and issued a default judgement against Dynamics for slightly over $1.47 million, plus fees and post-judgment interest. Compass co-CEO Thomas Heller expressed relief that the US legal system had recognized Dynamics Mining’s infringement of Compass and its clients’ rights.

Compass also noted that the issue with Dynamics Mining is “not unusual” in the business today, and that they are committed to finding top-notch suppliers and expanding sustainably. Despite the legal victory, it remains to be seen if Compass will be able to obtain the judgement against Dynamics. Regardless, the company is looking forward to the future, having established a precedent that will protect their rights and interests going forward.

• Bitcoin (BTC) long-term holders are not afraid of the current volatility, as evidenced by the all-time high of 2,594,574.300 BTC held last active ten years ago or more.
• The number of bitcoin addresses holding at least 100 BTC and 1 BTC also reached all-time highs of 16,133 and 978,000 respectively.
• However, distrust towards centralized crypto service providers continues to drive bitcoin off exchanges, with $29.1 million worth of bitcoin leaving cryptocurrency exchanges within 24 hours to press time on Dec. 30.

The current volatile state of the cryptocurrency market has not been enough to deter Bitcoin (BTC) long-term holders from their investment, with the amount of bitcoin supply last active ten years ago or more reaching a new all-time high of 2,594,574.300 BTC on Dec. 30. This is according to blockchain analytics service Glassnode, which also revealed that the number of bitcoin addresses holding at least 100 BTC — worth 1.66 million as of press time — also reached a one-time high of 16,133.

These metrics demonstrate that the interest in bitcoin remains strong despite the recent market downturn, with big holders continuing to accumulate the asset. Furthermore, the number of bitcoin addresses holding at least 1 BTC — worth about $16,600 as of press time — also reached an all-time high of 978,000.

However, it appears that public trust in centralized exchanges (CEX) is still weak, which is driving bitcoin off exchanges. This is evidenced by the ongoing exodus of bitcoin from CEXes, with Glassnode charts showing that over the 24 hours to press time on Dec. 30, $29.1 million worth of bitcoin left cryptocurrency exchanges alongside $56.4 million worth of Ethereum (ETH).

The distrust of centralized crypto service providers follows the fall of major crypto exchange FTX, which led to a collapse in public trust. Despite the service providers’ best efforts to regain user trust, it appears that the move has not been successful, as more and more users are opting to store their cryptocurrencies in wallets, rather than relying on centralized exchanges.

In conclusion, it appears that Bitcoin long-term holders are still confident in their investments, despite the current market volatility. This is evidenced by the all-time highs reached in the amount of bitcoin supply last active ten years ago or more, and the number of bitcoin addresses holding at least 100 BTC and 1 BTC. However, distrust towards centralized crypto service providers continues to drive bitcoin off exchanges, as more and more users are opting to store their cryptocurrencies in wallets rather than relying on centralized exchanges.

• The Securities Commission of the Bahamas is temporarily holding $3.5 billion in FTX customer assets until the Bahamas Supreme Court orders it to return the funds.
• The assets were given to the commission on Nov.12 after FTX and its affiliates filed for bankruptcy.
• The commission seized the assets to protect them from potential dissipation that would be detrimental to FTX’s clients and creditors.

The Securities Commission of the Bahamas has made headlines recently as it announced that it has taken possession of more than $3.5 billion in FTX customer assets. This decision was taken on November 12th, 2022, just after FTX, an exchange based in the Bahamas, filed for bankruptcy along with its affiliates. The announcement was made late Thursday, December 29th, 2022.

The commission was temporarily holding the digital assets until the Bahamas Supreme Court orders it to return the funds to customers and creditors, or the liquidation administrator. This decision was taken due to the theft of at least $372 million worth of crypto during a cyberattack on the defunct exchange. The commission feared that if these digital assets were not taken into custody, they could be subject to potential dissipation, which would be detrimental to FTX’s clients and creditors.

The Securities Commission of the Bahamas took a step towards protecting FTX customers’ assets and making sure that the funds are not misused. They sought and received a court injunction to protect digital assets while exercising its regulatory authority. The funds are now out of the reach of Bankman-Fried, former CTO and co-founder of FTX Gary Wang and anyone else associated with FTX.

The Commission is currently reviewing the customer assets to ensure that all the funds are accounted for. They are also looking into other fraudulent activities that may have taken place during FTX’s operations. The Commission is expected to issue further updates as the investigation progresses.

• The SEC blocked Coinbase from launching its Lend product in 2021, which probably saved the exchange from a possible crisis.
• Co-founder of Three Arrows Capital, Zhu Su, believes that the SEC’s action saved Coinbase from big trouble.
• In June 2021, Coinbase announced plans to launch a program called Lend, which would enable users to earn a 4% annual percentage yield (APY).

Coinbase, one of the world’s leading digital currency exchanges, was saved from a possible crypto lending crisis by the US Securities and Exchange Commission (SEC) in 2021. This was the opinion of the Co-founder of now-bankrupt crypto hedge fund Three Arrows Capital, Zhu Su, who believes that the SEC’s refusal to allow Coinbase to launch its Lend product saved the exchange from being entangled in the ongoing market contagion.

The story began in June 2021, when Coinbase announced plans to launch a program called Lend, which would enable users in the United States, except for New York and Hawaii, to earn a 4% annual percentage yield (APY) when they lend their USDC. The program was seen as a way for Coinbase to diversify its services and expand into the lending market.

However, in September 2021, Coinbase revealed that the company had received a Wells notice from the SEC, indicating that the securities regulator was looking to sue Coinbase if the crypto exchange went ahead with launching the Lend program. This took Coinbase by surprise, as the exchange had been in talks with the regulator for nearly six months. According to a blog post by the firm’s chief legal officer, Paul Grewal, the SEC did not provide any concrete reason for its action and stated that the product launch would be on hold till October.

It was this action that Zhu Su believes saved Coinbase from a potential crisis, as the SEC’s refusal to let the company launch the Lend product prevented it from becoming entangled in the market contagion. In the current market environment, many exchanges have been struggling due to the increased volatility and lack of liquidity, and Zhu Su believes that Coinbase would have been in a similar situation had it gone ahead with the product launch.

Coinbase remains an extremely popular exchange, and its decision to pause the launch of the Lend product was certainly a wise move. The exchange’s decision to comply with the SEC’s ruling may have saved it from a potentially disastrous situation and has given it the opportunity to continue to provide its services to its users.

• Former SEC attorney John Reed Stark believes that Bitcoin (BTC) may be trading as an unregistered security.
• Evan Van Ness took to Twitter to state that five companies, Antpool, FoundryUSA, f2pool, ViaBTC, and Binance, had mined 850 of the previous 1,000 blocks on the Bitcoin network.
• U.S. Securities and Exchange Commission Chairman Gary Gensler stated his conviction that bitcoin (BTC) is a commodity earlier this year.

The world of digital assets has become a very popular topic among investors, traders, and regulators alike. One of the most discussed topics is the classification of Bitcoin (BTC) as an investment asset. Recently, a former director of the Securities and Exchange Commission’s Office of Internet Enforcement, John Reed Stark, has come forward to suggest that Bitcoin may be trading as an unregistered security.

The suggestion was made after a tweet by Ethereum supporter Evan Van Ness regarding the concentration of the Bitcoin mining industry. Van Ness stated that only five companies, Antpool, FoundryUSA, f2pool, ViaBTC, and Binance, had mined 850 of the previous 1,000 blocks on the Bitcoin network. This data showed that these companies were responsible for more than 80% of all blocks, and more than 50% of that output was split between Antpool and FoundryUSA.

In response to this information, John Reed Stark asked why Bitcoin did not qualify as a security that had to be registered with the SEC. His comments came shortly after U.S. Securities and Exchange Commission Chairman Gary Gensler restated his conviction that bitcoin (BTC) is a commodity earlier this year. This announcement was celebrated by Bitcoin supporters who viewed the announcement as a sign that Bitcoin should be viewed separately from other tokens classified as securities.

It remains to be seen how regulators will respond to Stark’s suggestion. However, it is clear that there is a growing interest in the classification of digital assets, and this discussion is likely to continue to evolve as more information is revealed. As the world continues to explore the potential of digital assets, it is important to keep in mind the different rules and regulations that may be applicable to these assets. As such, it is important to stay informed and up to date on the latest news and developments.