Inside the eye of a tornado
Cryptic ball: another blanket ban.
After a week of consolidation, it looks like we're ready to pump again. Crypto started jumping in the last hours of Sunday, with bitcoin gaining almost 5% and ether nearly 7%. As usual, the move has been halted by stocks. Reasons to worry?
- I don't think so. US equities also started the day in the green but have now reversed course. This seems like a minor bump but it's important to note the S&P 500 stopped right at the resistance that June's bulls failed to break.
- I'm optimistic that it can be overcome this time, but there are plenty of more key tests ahead before we can put a nail in the coffin of all those bull market obituaries, like this one on the WSJ: RIP Big Bull Market (1982-2022).
- Yes, conditions changed, inflation is a serious threat, global politics are a mess, and the US Treasury Department just banned American citizens of using Tornado Cash - a popular Ethereum-based mixer to achieve on-chain privacy.
- The authorities in question argue North Korean hackers have used Tornado Cash. Which is possible, but it doesn't warrant a blanket ban as law-abiding citizens can also use it while providing proof for the source of their funds.
- Moreover, blockchain forensics company Elliptic, a competitor of Chainalysis, has been able to trace back all of the Tornado-mixed funds from the Horizon Bridge hack. They were the ones who found out North Korea was behind it.
- Banning US users wouldn't change anything about the way rogue nations behave nor about how they try to rob funds from the rest of the world. On the contrary! As the great CoinCenter argues, it is a very concerning policy.
Overall, this news won't impact prices - maybe Tornado's TORN but not more than that. So let's keep enjoying the summer, while waiting for Wednesday's CPI print and preparing the fight that will develop over September as bears wake up.
Chart art: back to positive.
Three things: another important reminder.
- Dave Stanton asks if "the vaporware is just part of the adoption cycle"?
- Haym Salomon asks if "MEV is part of the future of Ethereum".
- The DeFi Edge asks if you're taking good care of your mental health.
Tweet tip: back to memes.
Meme moment: another twenty bucks.
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