This Week in Pieces: Bitcoin Hits 2022 High, Solana and Terra Skyrocket, Ethereum Rallies

This week in parts. Illustration by Mitchell Preffer for Decrypt.

After a slow start to the year, Bitcoin hit a 2022 high on Monday and Ethereum posted big gains over the weekend, with several of the top 30 currencies surging in the past week.

On Monday, Bitcoin hit a 2022 high of $48,086.84, a price not seen since New Year’s Eve. On Saturday, the world’s favorite cryptocurrency had dipped slightly to trade at $46,722, according to CoinMarketCap.

Ethereum is yet to hit its 2022 high of $3,876.79 since Jan 4, but it has been rising heading into the weekend and, at the time of this writing, it is up nearly 12% last week to reach $3,481.67.

In the past seven days: Solana jumped 39% to $138.73, Terra’s LUNA exploded 26% to $112, Avalanche was up 23% to $103, NEAR Protocol added 20% to $16 and Tron was up 16% at $0.075. From Friday to Saturday, SOlana, Luna, and Avalanche had added up to 8%, with Polkadot also increasing by over 5%.

The anticipation of Ethereum 2.0 could be a key factor determining the price of Ethereum. This week, Google searches “Ethereum merger” reached an all-time high.

The fusion will be a moment Later this year when the Ethereum mainnet “merges” with a proof-of-stake system called beacon chain. Ethereum claims that this major update will fix well-known issues with network scalability and power consumption.

​​News this week

Much of this week’s crypto news cycle once again revolved around regulation.

On Monday, US President Joe Biden released a detailed report budget proposal which includes several accounting and tax reporting rules for digital assets. According to the White House estimate, the government can raise about $11 billion by taxing crypto in more than 10 years, and nearly $5 billion in 2023 alone.

Biden’s strategy is three-pronged. First, the administration will tax unrealized gains, so even if you don’t sell your crypto after it explodes 25% in a week, those gains will be taxed. Second, all crypto holdings over $50,000 in offshore digital asset exchanges and wallet providers will be taxed.

And finally, the proposal asks US banks and financial institutions to share information with the Internal Revenue Service about the value of assets of nonresidents and foreign owners of certain business entities. These rules also hope to catch U.S. citizens who create entities to evade paying federal taxes.

Michael Saylor, CEO of MicroStrategy and Bitcoin whale, secured a loan for buy more bitcoin Tuesday. It leveraged a subsidiary called MacroStrategy to take out a $205 million loan, which was backed by MicroStrategy. 124,391 BTC reservations at the time. The new purchase brings MicroStrategy’s total holdings to approximately 128,687 BTC, or over $6 billion.

On Wednesday, electronics giant Samsung announced it was partnering with the NFT Nifty Gateway market to create a new NFT market that Samsung TV owners can enjoy from the comfort of their sofa. Users will be able to view, buy, trade and view NFTs through the upcoming Smart TV interface announced for the first time in January.

On Thursday, European lawmakers passed a proposal requiring providers of crypto services, such as exchanges and wallet providers, to apply KYC (Know Your Customer) standards with people who transact. over €1,000 using non-custodial cryptocurrency wallets, such as Metamask. The project still has to go through tripartite meetings between the European Parliament, the Commission and the Council, but these are widely seen as formalities.

On the same day, the U.S. Securities and Exchange Commission (SEC) called on all U.S. companies offering crypto custody services to the public to report on customers’ crypto holdings as liabilities and to disclose their nature and amount.

On Friday, two U.S. lawmakers — House Republicans Trey Hollingsworth and Senator Bill Hagerty — introduced The Stablecoin Transparency Lawwhich requires stablecoins to be fully backed by US dollars and/or “government securities with maturities of less than 12 months.”

If approved, the law would also require stablecoin issuers like Circle and Tether to regularly publish audited reports of their reserves.

Work week ended with SEC denial another bitcoin ETF appthis time from Cathie Wood’s ARK Invest.

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