The mainstream market has entered the consolidation stage, and the bifurcated currency may rise!
On May 18, ZB Research Institute learned that US Congressman Tom emmer once again introduced his “safe harbor act for bifurcated assets” in Congress today.The proposed legislation will prohibit the IRS from using penalties related to bifurcated assets until it issues further guidance to taxpayers.According to the act, personal cryptocurrency income generated by the bifurcation (or the event that the cryptocurrency network is split into two different chains) will fall within the scope of safe harbor, which means that it will not constitute a taxable event unless the IRS provides additional information.
ZB Research Institute believes that when bitcoin (currency price) enters the consolidation stage, domino effect will also affect tokens such as Doge、ETH、ADA、LTC、BNB、VET、ETC、HBAR、SHIB、DOT、LINK、XLM、XDC、UNI、PAC、CSC、etc. But at the same time, with better anti risk ability, the forked currency will shorten the distance from the mainstream currency and form a value anchor. In the future, if the mainstream market fails to adjust and recover in time, the forked currency may rise.
As of the morning of May 18, the trading data of ZB exchange showed that the price of bitcoin was below US $500 million, with the highest quotation of US $45723 and the lowest quotation of US $42000 in 24 hours.The total market value of global digital currency returned to US $1.83 trillion.
Sony interactive entertainment is applying for a U.S. patent for its “E-Sports gaming platform,” it was reported on May 18.The patent was filed in 2019, and Sony announced the news last week. According to ZB Research Institute, the gambling tool will allow users of computers and game machines (Sony Playstation, Microsoft, Nintendo, etc.) to bet on “simulated” events, and the system will support multiple payment methods.
On May 18, coinbase announced that it plans to issue US $1.25 billion of convertible senior notes due in 2026. In addition, coinbase also hopes to provide initial buyers of the notes with a 30 day option to purchase additional notes with a principal of up to $187.5 million to pay for the over allotment. According to ZB Research Institute, the notes will mature on June 1, 2026.
According to ZB Research Institute, cryptocurrency companies raised US $2.5 billion in the first quarter of 2021, a record high. The figure is almost double the total amount of financing in the second quarter of 2018.Many of these cryptocurrency companies attract money from mainstream giants. Cryptocurrency companies that have raised hundreds of millions of funds in the latest round of financing include BlockFi, Blockchain.com and other enterprises.
According to ZB Research Institute, as the cryptocurrency market as a whole entered the consolidation stage, the transaction costs of BTC and ETH decreased by 81% and 71% respectively. The average cost of using the Ethereum blockchain dropped from $69.92 per transaction on Wednesday to $20.06 per transaction on Sunday. After reaching a record high of $4358 last Wednesday, ETH’s spot price has dropped to $3183, down 27% before publishing.
ZB Research Institute believes that lower transaction costs will further promote the formation of transaction volume and lay the foundation for the recovery of currency price after consolidation.
