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Play-to-Earn Is a Losing Game With a Focus on Money, Says Critics


Play-To-Earn (P2E) gaming, once blockchain gaming’s most promising format, is currently suffering a crisis of confidence. 

The rise of the P2E space is due to a convergence of many different trends. Cryptocurrencies exploded in popularity in the early 2020s. With their presence in the mainstream, many players entered what had previously felt like the Wild West. The corresponding rise of NFT gave the space the technology to push earning and collectibility in new directions.

DeFi platforms have also increased the utility of in-game currencies and items, as they can be traded and used outside of the game. But today, P2E currently looks to be in a very bad way.

Some of the industry’s brightest stars are in seriously bad health. Axie Infinity, for a long time the world’s most popular P2E title, is one such example. According to ActivePlayer.io, the last 30 days have only seen approximately 430,000 players. Which represents the game’s worst month since October 2020. The game’s native token is also down approximately 93% from its all-time high in August 2020. 

Source: Axie Infinity.

Play-To-Earns Look Like Ponzinomics, Say Critics

One of the space’s fundamental problems is that many P2E players logged in to make money. When the likelihood of good returns evaporated, so did many of the players. When you remove the earning potential, many games aren’t that fun, either.

Damian Bartlett, the Team Lead for W3E, the world’s first Web3 LAN gaming tournament, wants to see good blockchain-based games that offer the same quality experience as their Web2 predecessors. “I see many players align with my own views. We want fun games and the ability to own our own assets that we would buy anyway on our favorite traditional games. P2E has made speculative assets the focus, and the game itself is often a secondary priority. Many of these games DAO’s and therefore proposal votes are dominated by the will of a few whales. Not the majority of the players. It just causes of a cycle of everything being about money and the cryptocurrencies tied to the games.”

“A good Web3 game will simply be a fun game that people are playing regardless of assets, some NFT assets they can buy if they choose to and the ability to buy in and sell out without the complications of unstable game currencies devaluing everything.”

However, perhaps the industry’s fatal floor was the format itself. Many P2E titles are structured in ways that resemble colorful, fun-for-a-moment Ponzi schemes. (A Ponzi scheme collapses when the operator is no longer able to attract enough new investors to pay returns to existing investors or when too many investors try to cash out at once.)

The Industry Wants a More Sustainable Model

Frank Ma, CEO of Ultiverse, is one person who believes the format was doomed from the start. “It is not based on a legitimate business model, but rather on the constant recruitment of new investors. The scheme does not generate returns through any sort of productive activity, but rather through the contributions of new investors. It is a zero-sum game, where the gains of early investors are coming from the losses of later investors. So, it ultimately collapses, leaving the majority of investors with significant financial losses.”

For the industry to continue to grow beyond Play-To-Earn, Ma believes there are a few obvious priorities. Education is one of them. There are not enough “old school” gamers who are familiar with Web3 or blockchain technology. And when they are, the technology’s benefits are often poorly communicated.

“Offering in-game items or other rewards for engaging with Web3 features could be a powerful motivator for gamers, he says. “For example, offering in-game items that can be traded on a blockchain marketplace could be a way to introduce players to the benefits of Web3.”

Better UI, Please

Another is the widely recognized UI problem. Many Web3 games have a steep learning curve that can be offputting for new players. Finally, says Ma, we need better game integration. “Instead of creating standalone Web3 games, web3 games need to work with web2 studios, IPs, and collaborate.”

Players are catching on to the fundamental weakness of many Play-to-Earn titles. Whilst those who quit their jobs have discovered they may have made a mistake, Web3 community members who played for other reasons have grown tired of defending a defenseless system.

That widespread disillusion means players are looking for better titles. That migration is likely to lead to better in-game economics and playability. “The overall web3 gaming industry has gravitated towards a sustainable in-game economy,” says Boyang Wang, founder of P12, a Web3 gaming infrastructure project that aims to make game creation accessible and the game economy sustainable. 

As web3 gamers become more educated about its flaws, ponzi-like Play-to-Earn models are no longer as captivating. “P2E, therefore, tends to be increasingly unpersuasive to gamers since the source of financial gain from gameplay is undefined, and loss can be exponential upon collapse.”

Blockchain Gaming Is Still Growing

2022 was arguably Web3’s worst year to date. The market crashes and famous cases of bad behavior put much of the industry on the back foot. During its rise into the mainstream, a lot of the Crypto ecosystem had forgotten how to defend itself, so when the repeated crises hit, a lot of the industry was blindsided.

Blockchain gaming largely has largely avoided the worst of the criticism. In 2022, according to DappRadar, gaming made up almost half of the on-chain activity. Whether that continues to grow in 2023 depends on one big question: can Web3 make great games?


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BTC Season Continues as Fear and Greed Index Hits 14 Month High


In the closing month of January so far, Bitcoin has risen by about 40%. The Fear and Greed Index, which in the early days of the year was around 25 points, today indicates “greed” in the cryptocurrency market. Does this signal further increases in the BTC price? Or is a correction now to be expected?

The rapid rise in Bitcoin price in January 2023 led the Fear and Greed Index to a high level of “greed.” Today’s index reading of 61 is a value not seen in the cryptocurrency market for more than a year:

Just recently, BeInCrypto reported that the Fear and Greed Index had returned to neutral figures (around 50) after 9 months of being in “fear” territory. In contrast, today the sentiment of cryptocurrency market participants is at its highest in 14 months.

The last time the Fear and Greed Index was above the 60 level (red line) was on November 16, 2021. At that time, the price of Bitcoin was $62,000 and had just started a decline from the all-time high (ATH) set a couple of days earlier.

Source: alternative.me

Today the Fear and Greed Index is at 61, while the price of BTC is dropping after recording a local peak at $23,960. Market sentiment is once again in greed territory, despite the fact that the largest cryptocurrency is priced $38,000 lower today than it was in November 2021. Moreover, Bitcoin is still 65% below its ATH.

Is the “greed” on the Fear and Greed Index a signal of an upcoming bull market?

However, arguments can be drawn from the above data for a potential bullish trend reversal. Historically, the recovery of the “greed” area has been associated with a prediction of an upcoming surge in Bitcoin price.

So far, 3 times in the history of Fear and Greed Index data, it has regained an area above 60 points after previously diving into extreme fear levels below 20 (red dots). It turns out that after each of these events, Bitcoin price experienced large increases:

  • On February 22, 2019, the index increased to 63 and the BTC price was $3779; over the next 124 days, BTC surged 254% and peaked at $14,000.
  • On July 28, 2020, the index increased to 76 and the BTC price was $10,954; over the next 260 days, BTC surged 486% and peaked at $64,500.
  • On July 31, 2021, the index increased to 60 and the BTC price was $41,719; over the next 102 days, BTC surged 66% and reached an all-time high of $69,000.
Look into bitcoin chart
Source: lookintobitcoin.com

Averaging, historically Bitcoin has taken 162 days to generate a 269% profit after the Fear and Greed Index entered greed territory above the 60 level. If such increases were to occur now as well, counting from the current valuation, the closest peak can be expected at $86,000 on July 11, 2023.

This would not only be a breakthrough of the current ATH, but also an unprecedented achievement of new peaks in the BTC price before halving. According to current estimates, this event is scheduled for March 28, 2024. In previous cycles, Bitcoin has reached a bull market peak about 12-18 months after halving.

Bitcoin season

In the context of the positive data from the Fear and Greed Index, it is worth looking at one more indicator. Many cryptocurrency market participants look at the Bitcoin market with as much interest as they pay great attention to altcoin prices. It is on their charts that investors look for the biggest gains when the altcoin season emerges.

One of the best indicators of a potential altcoin season is the Altcoin Season Index created by BlockchainCenter.net. It has three versions: monthly, annual, and quarterly (90 days). And it is the latter that is considered the best measure of the cryptocurrency season.

The Altcoin Season Index ranges from 0 to 100. Values below 25 indicate a Bitcoin season, while values above 75 indicate an altcoin season. The range between 26 and 74 is a neutral area, where Bitcoin and altcoins perform equally well or equally badly.

The indicator performance over the past two months oscillates in the 25-35 area, while today Altcoin Season Index points to 27. This means that however, altcoins are trying to keep pace with Bitcoin, and the market is clearly leaning towards the dominance of the orange cryptocurrency.

Moreover, in the chart below, we can also see that the short altcoin season took place between August and September 2022. If the chart continues the downward trend, we could soon have a big Bitcoin season.

bitcoin altcoin season
Source: blockchaincenter.net

For BeInCrypto’s latest crypto market analysis, click here.


BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. You comply and understand that you should use any of this information at your own risk. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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Gemini Customers Upset Over Misleading FDIC Statements


Customers of Gemini exchange whose funds were frozen say they were misled into thinking their money was protected by the Federal Deposit Insurance Corporation (FDIC).

Gemini customers claim the exchange misled them regarding the FDIC status of their GUSD stablecoin deposits on the platform through ambiguous terminology in marketing materials and customer support.

Gemini Customers Criticize Ambiguous FDIC Statements

Several Gemini customers said that the exchange failed to distinguish the FDIC status of its own bank deposits of stablecoins and Gemini’s customer products, prompting the New York Department of Financial Services to investigate the exchange.

It is illegal under U.S. Federal law to make misleading statements about FDIC insurance.

When enquiring about the FDIC status of the GUSD stablecoin held in his interest-bearing Gemini Earn account, Gemini’s customer support told one customer that his GUSD at other financial institutions was eligible for FDIC insurance. The customer’s GUSD in the Earn account is currently frozen.

Gemini offered Earn customers up to 7% annual interest on crypto deposits. Gemini suspended withdrawals from its Earn product after lending partner Genesis Global Capital paused withdrawals and loan originations on Nov. 16, 2022.

Genesis generated interest for Earn customers by lending their deposits to other institutions at a higher interest rate. Gemini allegedly collected up to 4.29% of accrued interest as an agent fee. Genesis filed for bankruptcy on Jan. 19, 2023, reportedly owing its top 50 creditors around $3.5 billion. It owes over 300,000 Gemini Earn customers about $900 million.

The U.S. Securities and Exchange Commission is investigating Gemini and Genesis for offering the Earn product as an unregistered security.

Marketing Campaigns Reinforced Winklevoss Aura

Some investors put their money in Gemini because of the reputation of its founders, Cameron and Tyler Winklevoss.

Aggressive marketing campaigns with slogans like “Crypto Without Chaos,” and “The Revolution Needs Rules,” splashed on subways and taxi roofs in 2019, painted Gemini and the Winklevii as the harbingers of order in a largely chaotic industry.

In a 2019 blog post, the Winklevii championed the exchange’s philosophy of “ask for permission, not for forgiveness.”

Gemini also marketed its registration as a limited-purpose trust company with the New York Department of Financial Services as a sign of its trustworthiness.

“We chose this path because we believed that in order to build the future of money, we had to first build trust in this new asset class,” the blog post reads.

Dennis Kelleher of Better Markets, a market oversight advocacy group, believes Gemini intentionally misled its investors.

“Everybody knows the value in terms of investor comfort and confidence in something that is FDIC insured,” he told Axios. He criticized the exchange for lulling investors into a sense of “false comfort” through the appearance of legitimacy.

But it is unclear whether the FDIC will take any enforcement action. Its only major enforcement action since 2008 resulted in a fine of only $100,000.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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Can A Federal Reserve’s Counterattack Stop Crypto Bull Run?


The crypto industry may be facing a major setback as the Federal Reserve (FED) appears to be losing control of the markets. This new status quo could lead to even more hawkish measures impacting the traditional and cryptocurrency markets. 

A report released on January 29 by Michael J. Kramer – founder of Mott Capital, suggests that the FED needs to “push back against the market before it’s too late.” Since the December Federal Open Market Committee (FOMC) meeting, financial conditions have eased dramatically. 

This easing of financial conditions has led to a rise in commodity prices, a drop in mortgage rates, a weakening dollar, and a rally in stocks and significant crypto assets, including Bitcoin, Ethereum, and others. 

According to Kramer, the February Federal Open Market Committee (FOMC) meeting will be crucial because the FED will need to roll back the current easing of financial conditions. In addition, the Mott Capital founder believes that these current market conditions are at the same level as when the FED began raising interest rates.

For Kramer, pushing back at this point maybe even more complex and trickier than when Fed Chair Jerome Powell gave his Jackson Hole speech. The financial institution has the challenge of restoring price stability by “softening” labor conditions. 

As a result, the Fed has been hiking interest rates. Their objective is to bring down inflation, leading them to use “forceful tools to bring supply and demand into a better balance.” 

Furthermore, according to Kramer’s report, investors know the FED is closer to the end of its hiking cycle than the beginning. The market also expects inflation to continue its downward trend. Thus, any aggressive measure by the financial institution could surprise the legacy and crypto market, causing more significant than expected losses. 

In his analysis, Michael J. Kramer says the FED has two options: raise rates by 50 basis points (bps), which could be a big surprise for the markets, or signal that financial conditions have eased too much, which could prolong the rate tightening cycle.

What Cards Does The FED Has Left Under The Sleeve

The FED’s options are limited at this point. Kramer claims the market does not believe the FED when it wants monetary policy to be sufficiently restrictive and is willing to endure the current market conditions to kill the inflationary impulses that still exist.  

For Kramer, the FED can go against the collective belief that it will only raise rates by 25 basis points and instead raise rates by 50 basis points. Powell could also deliver a more vital message than he did at Jackson Hole last year. 

Otherwise, the FED may need to raise the issue of possibly increasing the pace of quantitative tightening and balance sheet unwinding. In short, Kramer believes that anything other than the above options would suggest that the FED is comfortable with the current easing of financial conditions and is willing to let the market take control and drive monetary policy.

How Will The Crypto Market React?

The crypto industry has great expectations of the Federal Market Committee meeting this week and Powell’s speech. Digital assets are facing major resistance lines after the volatility spikes since the beginning of 2023. 

It seems like a race against time and government action to see how investors and prices react to potentially more hawkish measures. The crypto market’s capitalization has increased, and the tightening measures may result in another crash for cryptocurrencies.

BTC moving sideways on the daily chart. Source: BTCUSDT Tradingview

The vast majority of cryptocurrencies follow the price action of Bitcoin (BTC), and since the weekend, Bitcoin has suffered a slight correction. As of press time, Bitcoin has failed to gain higher territory, falling 1.6% in the last 24 hours, auctioning at $23,140, an 1.9% gain in the last seven days.

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Crypto Investors Seek Real Utility, Moving Beyond Hype


Investors in the crypto market are searching for more than just a flashy product. While cryptocurrencies with low market capitalization might look tempting, they aren’t necessarily good investments.

The real question for potential buyers is what the token is used for. It’s not enough to have a product that’s innovative and well-designed – there needs to be a clear purpose for buying and holding onto the coin.

Crypto Investors Search for Real Utility

As the crypto market continues to grow and mature, investors are becoming more savvy and discerning in their choices. They are looking for projects with real token utility – something that they can actually use and benefit from in their daily lives.

This shift in focus has led companies to re-evaluate the role of their token in their ecosystem, as crypto investors want to know what they’re buying into. In response, many companies are now thinking creatively and critically about the value that their token offers.

Some companies are even exploring new use cases for their tokens, such as incentivizing user engagement or providing access to exclusive services.

One example of a company that has successfully leveraged token utility is Compound, a decentralized finance (DeFi) platform. Compound’s COMP token is used to vote on protocol changes, provide liquidity, and earn rewards. This has led to high demand for the token, and has resulted in its market capitalization growing from $0 to $1 billion in just one year.

Source: BeInCrypto

Another example is Chainlink, a decentralized oracle network that connects smart contracts to real-world data. Its native token, LINK, is used to pay for services on the network and incentivizes node operators to provide accurate data. This has helped make Chainlink one of the most widely used decentralized oracle platforms in the blockchain industry.

Despite the growing interest in token utility, not all companies have succeeded in delivering real value. Many coins are still considered speculative investments, with no clear purpose or underlying value.

High Risk in Low Cap Tokens

Investing in cryptocurrencies with low market capitalization and no real utility can be a risky proposition. A token’s utility refers to its purpose and usefulness within the ecosystem it operates in. In the world of cryptocurrencies, the market capitalization of a token is largely dependent on its perceived value, which is derived from its utility.

Crypto investors need to consider the purpose and use case of the token. Tokens with low market capitalization and no real utility may not be backed by any tangible assets or have any inherent value. As a result, these tokens are subject to wild price swings, and their value can plummet quickly and without warning.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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Fantom (FTM) plans to introduce fUSD V2

  • fUSD v2 will allow for an on-chain fee system and help unlock Fantom to further institutional adoption.
  • The migration to fUSD v2 will allow for a predictable, budget-friendly on-chain fee system.
  • Liquidations of FTM positions will occur, although users will have ample time to sort such scenarios.

Layer-1 blockchain platform Fantom plans to migrate from fUSD version 1 to fUSD version.

The Fantom Foundation said in a blog announcement on 29 January that the stablecoin migration is a key goal as the developer team seeks to make the scalable next-gen blockchain more predictable and cost-effective for builders, partners and users.

 fUSD V2 will see Fantom users allocate fees in the native FTM or fUSD, with this making it easier to predict future costs based on the network usage. 

According to Fantom Foundation’s Andre Cronje, moving toV2 and allowing for an on-chain fee system will not only introduce consistency when it comes to planning, but also help unlock more institutional products.

FTM liquidations ahead of v2 launch

Fantom supports the use of FTM and fUSD in decentralised finance (DeFi), with users able to access services such as lending and borrowing. It’s for this reason that the Fantom Foundation has highlighted potential liquidations as migration from fUSD v1 begins.

The liquidations, Cronje pointed out, will occur in scenarios where the fUSD debt is either equal to or greater than the FTM or staked FTM (sFTM) backing it. In case of sFTM, Fantom says the stake will be unstaked immediately, with all rewards thereof claimed. 

The same cause of action will be taken against validators with less than the minimum stake, with this group unable to produce blocks or claim block rewards.

The timeline for v2 going live hasn’t been provided, but Fantom will help users as they look to close out positions ahead of the launch. This includes the ability to swap DAI for the Fantom stablecoin using a newly created swap tool. 

Users will get enough time to sort out themselves and benefit from advance notifications before any liquidation.

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Crypto Assets See Stunning Return of Inflows


Cryptocurrency investment products saw the largest amount of inflows since July last year, as part of a recent comeback for digital assets.

Inflows into digital asset investment products amounted to $117 million over the past week, according to the latest CoinShares report. Concurrently, total asset under management (AuM) managed to reach $28 billion, a 43% appreciation from the recent nadir in Nov.

The report remarked that trading volumes had risen dramatically in the past week, reaching $1.3 billion. This figure is up 17% compared to the year-to-date average, although investment products remain only 1.4% of total volumes on trusted exchanges. Such demand is also being seen across the broader crypto markets, which have seen average weekly volumes grow some 11%.

While healthy inflows came from both North America and Europe, Germany by far saw the largest share this past week. At $46 million in inflows, this represented roughly 40% of last week’s total. Other major contributors included Canada, the US and Switzerland, which saw $30 million, $26 million and $23 million respectively. Meanwhile, Brazil saw minor outflows of $6.3 million.

Bitcoin Takes the Lion’s Share

Almost the entirety of inflows last week went to Bitcoin-base investment products, at $116 million in inflows. However, the report pointed out that mild inflows of $4.4 million into short-Bitcoin products suggested that opinion remained polarized.

The largest outflows occurred for multi-asset investment products, which in its ninth consecutive week amounted to $6.4 million. The report said this demonstrated a preference for select investments, highlighting minor inflows for altcoins like Solana, Cardano and Polygon. Platform tokens on the other hand saw minor outflows, such as Bitcoin Cash, Stellar and Uniswap. Finally, blockchain equities achieved inflows of $2.4 million.

Crypto Rebounding?

The spike in sales figures over the past week represents the resurgence cryptocurrencies have been experiencing recently finally reaching investment products. The price of Bitcoin has risen nearly 40% since the beginning of Jan., from just under $17,000 to $23,000. Ethereum has been no slouch either, rising some 30%, from $1,200 to just under $1,600. Over the past month, total cryptocurrency market capitalization has risen back above $1 trillion. 

Crypto markets have also reacted favorably towards the sentiment offered by the release of recent economic figures. With inflation cooling, and the economy still in good form, markets are increasingly hopeful of a “soft landing.” The Federal Reserve and other central banks are expected to slow rate hikes at meetings later this week.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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Bitcoin 41% Rally Causes Mining Revenues to Top $24 Million


Bitcoin mining revenue rose $8 million, and mining difficulty spiked 5% in January 2023 as rising Bitcoin prices incentivized greater deployment of mining hardware.

Mining difficulty rose about 4.7% from two weeks ago to almost 40 trillion at press time, while revenues grew from around $15.3 million on Jan. 1, 2023, to roughly $24 million at press time.

Revenue Driven by Bitcoin Rally

Bitcoin’s 41% surge since the start of 2023 significantly increases the value of the block reward miners receive, incentivizing them to deploy more resources.

BTC/USDT Daily Trading Chart | Source: TradingView

Bitcoin miners are rewarded with Bitcoin by expending computing power to guess the correct hash of a block of Bitcoin transactions. Miners use special computers called ASICs to vary a value called a nonce to generate a hash value less than a predefined number.

The Bitcoin algorithm adjusts mining difficulty once every 2016 blocks or roughly every two weeks. It increases the difficulty if the average time to guess correct hashes for the previous 2016 transaction blocks is less than ten minutes. Lower verification time usually corresponds with increased computational power on the network.

To keep the block time at ten minutes, the algorithm increases the difficulty, making it harder for the new computers to guess the correct hash. Conversely, if fewer machines are online, the algorithm increases the hash threshold.

At press time, the difficulty was about 39 trillion, up from around 37.5 trillion two weeks ago.

BTC Mining Difficulty
BTC Network Difficulty | Source: Blockchain.com

A higher difficulty corresponds with a lower hash value threshold, requiring more guesses of the hash per second.

BTC Hash Rate
BTC Daily Hashrate | Source: Blockchain.com

At press time, the hash rate of the Bitcoin network was around 290 exahashes-per-second.

Mining Industry Set to Consolidate in 2023: CoinShares

The 2022 bear market saw miners with high levels of debt struggle to remain profitable.

New York-based mining firm Greenidge sold machines to the New York Digital Currency Group as part of a debt restructuring plan. Core Scientific switched off a contingent of mining machines it operated on behalf of collapsed lender Celsius after the lender failed to pay for rising energy costs. Sydney-based Iris Energy chose to shut down a facility struggling to service a $108 million loan. At the same time, Argo Blockchain recently sold off its Helios facility in Dickens County, Texas, to crypto financial services firm Galaxy Digital. Stronghold Digital Mining recently extinguished about $18 million in amended notes in exchange for Class C amended shares.

CoinShares’ Matthew Kimmel suggested that while 2022 was brutal for most mining companies, 2023 will continue to flush out insolvent outfits and consolidate mining operations.

A steady Bitcoin price driven by the flushing out of companies built on aerated foundations of irresponsible debt and risk management will mean that mining companies can plan better, he predicted.

Miners with better cash flow can invest in more efficient mining machines, reducing their energy usage per hashing operation since the profitability of a mining operation depends heavily on the cost of electricity.

Sufficient debt eradication and lower overhead costs would also help companies stockpile Bitcoin for 2024, when the number of Bitcoin awarded to miners drops to 6.25 BTC per correctly guessed hash.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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How the US Inflation Reduction Act Will Impact the Crypto Market


The Inflation Reduction Act that went into effect on January 1st, 2023. It has introduced several new taxes aimed at certain corporations and industries that could also affect the crypto market.

Indeed, these new taxes are expected to have a significant impact on the crypto industry, which has been growing in popularity as a decentralized alternative to traditional financial systems.

The Inflation Reduction Act and Crypto

The five new taxes introduced by the Inflation Reduction Act will likely result in higher prices for various products and services. This will likely affect every person living in the US.

The first tax is a regressive tax on American oil and gas development. It is expected to increase the cost of household energy bills. The tax could drive up the price of natural gas and electricity, which will impact the cost of living for many families.

The second tax is a 16.4 cents-per-barrel tax on crude oil and imported petroleum products. It will also lead to higher gas prices. Finally, the third tax is a significant increase in the tax rate on coal mining. It is expected to result in higher electricity bills.

In addition to these taxes, the Inflation Reduction Act also has a broader impact on the economy. It essentially increases the cost of doing business. This increase in cost will likely result in higher prices for goods and services, which will impact consumers directly.

Source: CRFB.org

The crypto industry is expected to be impacted by these new taxes in several ways. For one, the increased cost of doing business will likely result in higher fees for cryptocurrency exchanges. This will make it more expensive for individuals to trade and store their digital assets. Additionally, the increased cost of energy could make it more expensive for crypto miners to validate transactions and earn rewards for their efforts.

Despite the potential challenges posed by the Inflation Reduction Act, the cryptocurrency industry is likely to continue growing. This is due to the increasing recognition of cryptocurrencies as a legitimate form of currency, as well as their decentralized and secure nature.

The Inflation Reduction Act and its new taxes have far-reaching implications for the US economy and the cryptocurrency industry. While there are potential challenges, the cryptocurrency industry is expected to continue growing in popularity as a decentralized alternative to traditional financial systems.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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Shrinking Interest Rate Hikes Expected From Fed, ECB, BoE


Analysts expect the Federal Reserve (Fed) and other central banks to continue decelerating their interest rate hikes at upcoming policy meetings this week.

The Federal Reserve is widely expected to ease its monetary policy tightening amid mounting signs of cooling inflation. Members of the Federal Open Market Committee (FOMC) have signaled in favor of a 0.25 percentage point increase. This would raise the benchmark federal funds rate to a range of 4.5% to 4.75%.

This prospective raise, the second consecutive downshift by the Fed, would mark a return to more normal rates. The central bank had raised rates by 0.5 percentage points at its last meeting, after four straight hikes of 0.75 percentage points last year. Other prominent central banks are also poised to follow suit amid signs their efforts have been taming inflation.

Europe Also Braced for Hikes

Markets anticipate that the European Central Bank will also raise rates by 0.5 percentage points later this week. ECB President Christine Lagarde recently emphasized that the monetary authority would “stay the course” with regard to robust rate hikes. This suggests another 0.5 percentage-point increase, following its last session, raising the deposit rate to 2.5%.

One expert explained that a resilient economy and persistent core inflation will require the ECB to repeat this decision. However, after a further 0.5 percentage points in March, he expects a drop to 0.25 at the following sessions. At this point, he said inflation would peak at 3.5%.

Markets are also pricing in a 0.5 percentage-point rise by the Bank of England at its meeting this week. From a historical low of 0.1% in late 2021, this raise would take the bank rate up to 4%. This is the highest it has been since 2008.

Will Recession Threat Abate?

These decisions have come amid consecutive indicators that efforts to raise rates have been having an effect on cooling inflation. The Consumer Price Index actually declined 0.1% in Dec., compared to the previous month, the lowest since Oct. 2021.

Its year-on-year increase of 6.5%, while high, still represented a decline for the sixth straight month. While rising rates seemed to have dampened inflation, recent data show that GDP growth remained robust in the fourth quarter.

With inflation cooling and the economy intact, markets’ hopes are rising of a “soft landing” to any impending recession. Crypto markets have also responded accordingly, with Bitcoin on the rebound this month.

Both the leading cryptocurrency and runner-up Ethereum have seen a 30% appreciation this month as economic prospects emerge. However, the Fed’s actions will also ultimately be dictated by other relevant economic data expected this week.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

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