Crypto Market Analysis: 16th August 2021

Cryptoassets continued their surge last week, with Cardano (ADA) a standout performer. ADA started the week at $1.41 but has since soared, reaching over $2.24 on Saturday – a 96% rise. At the time of writing the cryptoasset is trading around $2.14. Bitcoin continues to edge back towards the $50,000 mark as it maintains its steady recovery. Having started the week below $44,000, BTC at times traded above $48,000 as its rally progressed with some volatility. It is now trading around $47,431. Ethereum is also now trading comfortably above $3,000 following its long-awaited London hard fork two weeks ago. ETH started the week around $2,950, but despite a blip on Friday has not since fallen below $3,000. It is currently trading around $3,284. US infrastructure bill approved The $1trn infrastructure bill passed through the US Senate last Tuesday, meaning cryptoasset tax proceeds could soon help fund the US’ ambitious infrastructure requirements, with plans to raise $28bn in the next 10 years. The bill contains new regulations for US-based crypto firms to extend the definitions of what defines a crypto ‘brokerage’ to include exchanges, which will set new higher level requirements for tax reporting of users. The bill is now set to head to the House of Representatives for further scrutiny. Whilst rumours continue to persist about future regulation of the market, the Federal Reserve is still keen to foster faster payments by developing i...