MCS Crypto News - Issue #5

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Bitcoin (BTC) continues to command attention. Recent on-chain data suggests some intriguing trends:

📊 Holders Hoarding BTC 📊

Bitcoin holders are in a collecting mood, with a significant number of them accumulating the cryptocurrency.

📉 Exchange Holdings at All-Time Lows 📉

Exchange holdings of Bitcoin have reached all-time lows. This signifies a remarkable shift towards a "HODL" (hold on for dear life) mentality among investors.

📈 Inactive Supply Soars 📈

The percentage of inactive Bitcoin supply, referring to coins that haven't moved for extended periods (1-, 3-, and 5-year time frames), reached all-time highs since July 2023.

📊 Key Figures 📊

• 🕒 An estimated 69% of Bitcoin addresses, approximately 36.8 million addresses, have been holding the crypto for over a year without selling, according to CoinTelegraph.

• 📉 Bitcoin outflows from exchanges have declined steadily since July 2021, with just over 2 million Bitcoin currently remaining on exchanges. Note that an outflow means that users are taking their coins off of exchanges and moving them to a self-custody wallet for safekeeping. This means they likely wont be sold any time soon.

📈 Exchange Activity 📈

Binance recorded outflows of 21,645 Bitcoin in the last 30 days, while Coinbase Pro saw 3,612 Bitcoin withdrawn during the same period.

💰 Bitcoin's Price Surge 💰

In the midst of these trends, Bitcoin reached a peak of $27,000 this week, accompanied by a substantial increase in transaction volume. Almost 703,000 Bitcoin transactions were reported, marking the highest transaction volume in nearly two years.

🚀 Optimistic Outlook 🚀

The rise in daily active addresses, reaching a multi-month high of 1.08 million, and the trend of Bitcoin outflows from exchanges reflect a growing sentiment of holding and potentially making long-term investments in Bitcoin.

In the realm of cryptocurrency legislation, recent developments in the US House of Representatives have caught our attention:

📜 CBDC Anti-Surveillance State Act Moves Forward 📜

The CBDC Anti-Surveillance State Act has taken significant strides in its procedural journey, passing the House Financial Services Committee. Authored by Representative Tom Emmer, the bill aims to prevent unelected officials from issuing a Central Bank Digital Currency (CBDC). It has already garnered support from 60 members of Congress.

Emmer passionately emphasized that a CBDC, if not open, permissionless, and private, could become a tool for surveillance, contrasting American values. The bill would prohibit the Federal Reserve from issuing a CBDC to individuals and using it for monetary policy implementation.

🔒 Ensuring Privacy and Congressional Authorization 🔒

Another bill spearheaded by Republicans in the House Financial Services Committee seeks to block the launch of a U.S. CBDC unless explicitly authorized by Congress. This legislation also prioritizes the privacy of American citizens and aims to safeguard the nation's financial system.

The bill takes a preemptive stance by banning CBDC pilot programs and retail digital currency issuance by the Federal Reserve. However, its fate in the Senate remains uncertain, as Senate Democrats have differing views on digital assets.

🗳️ Political Divides on Digital Currency 🗳️

While Republican-led cryptocurrency bills make progress in the House, Senate Democrats, led by Sen. Sherrod Brown, hold contrasting opinions. Rep. Maxine Waters, a top Democrat on the committee, expressed concerns about stifling innovation and hindering the nation's global competitiveness.

Here’s the thing - the innovation on this tech should not be done by the government. It should be done by the private sector. This bill stifles the Governments innovation. That’s a good thing.

The Federal Reserve, cautious about proceeding with a CBDC, awaits clear direction from the White House and congressional authorization. With over 130 countries considering digital currencies and some like China already implementing CBDCs, the U.S. faces a pivotal decision in its digital currency journey.

🪙 Your Takeaway 🪙

I typically refrain from expressing my viewpoint on crypto news, but this topic ignites such a hot fire within me that silence is simply not an option. We need to reject CBDCs at all cost.

If one is implemented, it will give the government control over your money at a programmable level.

They will be able to:

• See everything you buy and sell

• Limit what you buy and sell

• Freeze your account

• Mint more money even easier than they can right now

• Give you a social credit score based on THEIR rules

• Trace everything you do

• Phase out cash by stating, for example: If you trade in your cash for a digital dollar during this year, you’ll get a 1 : 1 exchange rate. Next year, 90 cents on the dollar. The year after? .8 : 1. And so on.

Phase out cash? Don’t think its possible? Think I’m crazy? It’s happened before, with gold. In the 1930’s, the government of Franklin D Roosevelt seized all gold bullion and coins via Executive Order 6102, forcing citizens to sell at well below market rates.

DO NOT fall for this. CBDCs are all about controlling YOU.

Now that I’m all worked up, let’s get into some other quick hitting news:

Another US Congressman obliterates CBDCs.

Tether purchases GPUs to capitalize on AI boom.

X confirms payments integration.

dYdX to launch Cosmos Chain in October.

Metamask integrates Solana.

That’s all for today. We’ll be back tomorrow with MCS Crypto 101 - Issue #6.

Thank you so much for subscribing to Make Crypto Simple.

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}