bridge21 weekly update
If you care about crypto and live in the US, it’s time to call your legislators (more below). The USD:MXN rate bounced of 19.8:1 levels, trading at over 20:1 this morning. Bitcoin rallies again; it’s presently trading over 46k USD!
Political call to action in the US: Call your Legislators!
We try to avoid politics in these updates, but sometimes we need to make an exception.
The sprawling US infrastructure bill contains language in its 2,700 pages that requires crypto “brokers” to file 1099s on transactions. The issue? The language defining “brokers” is so poorly worded that it is likely to apply to miners, stakers, and software developers creating Bitcoin wallets and other technologies.
If the bill passes through the House unamended, it will force financial surveillance into all aspects of cryptocurrency and effectively criminalize the most innovative parts of the industry. It will put startups out of business and drive software developers offshore.
If you reside in the US, please take five minutes out of your day to call your Congressional representatives. This site makes it easy for you and even gives you scripted language to use.
It is unlikely the language will apply to bridge21 and its customers (as we do not exchange cryptocurrency directly with customers). Still, if the bill goes to the House unamended and passes, vast swaths of the cryptocurrency industry will be decimated in the United States. Presently there’s a standoff between Republicans and Democrats in the Senate, and amendments cannot be added to the bill without unanimous consent. The time to act is now!
Short-term USD:MXN forecast
The USD:MXN rate dropped and bounced off of 19.8:1 levels before rallying above 20:1 as of this writing.
Our best guess is that we’ll see modestly higher rates in the coming days, followed by a correction later in the week.
Bitcoin rallies over 46k USD!
Bitcoin is in a short-term uptrend. Ethereum is also rallying, largely due to the NFT craze and EIP-1559, which burns Ethereum when it’s used, reducing supply. We think a correction may be likely over the next week or two, with big risks coming from the US infrastructure bill.
If we are wrong and the uptrend breaks 64k USD levels for Bitcoin, all bets are off and the bull market is back on!
Longer-term USD:MXN rate forecast
Our long-term forecast is still higher for the USD:MXN exchange rate through 2021.
Best regards,
Will -bridge21.com
The content in this update is for informational purposes only. You should not construe any information or other material in this update as legal, tax, investment, financial, or other advice. While we took care to share correct information from reputable sources, bridge21 cannot guarantee the accuracy or timeliness of the information.
