Crypto newsletter: Bitcoin returns above 47k. Ethereum's popularity is rising

• Walmart’s is looking for digital currency and crypto product lead 
• US Treasury to provide clearer crypto tax guidelines
• Bitcoin popularity plummets 

The past week was a positive one for the cryptocurrency market. Bitcoin reached its highest levels since mid-May, however major cryptocurrency is losing popularity to Ethereum. Bitcoin's market dominance decreased to 43.7%. The capitalization of all digital assets in circulation rose to 2.0 trillion for the first time in nearly 3 months, while an average daily trading volume is registered at $114.6 billion.

Walmart seeking to hire digital, cryptocurrency lead

Walmart, the largest U.S. retailer is looking to hire a digital currency and cryptocurrency product lead. Role includes driving the company's currency strategy and identifying crypto-related partnerships and investments. It's not clear what products the person would launch. The job ad was released weeks after rumors swirled that Walmart rival Amazon was poised to make a big entrance into the crypto market. 

US Treasury is preparing guidance on the crypto tax reporting provisions in the infrastructure bill

According to Bloomberg, one of the officials has reported that the Treasury Department is planning to clarify the definition of “broker” in the recently passed infrastructure bill. This source claimed that developers, miners and wallet providers won’t be subjected to the new reporting requirements, provided they don’t also act as brokers. The Treasury Department has yet to confirm publicly whether these plans are true, but the unnamed individual explained that the guidance is being discussed internally but could be made public as soon as next week.

Bitcoin bounced off 200 SMA (red line) and broke above strong resistance at $ 46,672 which coincides with 50% Fibonacci retracement of the last downward wave. If the current sentiment prevails, the next target for bulls can be found at the 61.8% retracement around $50,882. On the other hand, should there be a change in the current sentiment, then the next major support is located at the $ 42,465. Source: xStation5

Rising popularity of Ethereum

According the cryptocurrency exchange Gemini, Ethereum has become the most popular cryptocurrency among Singapore investors - 78%own Ethereum and 69% have Bitcoin.  Ethereum’s rising popularity can be attributed to the increase in the number of deflationary blocks being produced since EIP-1559 went live with the London hard fork $165 million worth of ETH has been burned in the past ten days. Also surge in demand for ether was on display in Coinbase's second-quarter earnings, with the publicly traded exchange and brokerage firm reporting that ETH trading volumes topped bitcoin volumes for the first time during that period.

As more Ethereum is pulled out of circulation, analysts note a rise in Total Value Locked (TVL) on DeFi and a spike in volume of Ethereum staked in the ETH 2 contract. Source: Glassnode

In addition, the growing functionality of Ethereum affects its popularity. In a new paper released by Microsoft’s research department, with the participation of researchers from Alibaba and Carnegie Mellon University, the software giant studied a Ethereum blockchain and may use it to fight piracy.

Ethereum price continues to tread within an ascending wedge pattern, forming higher highs and higher lows. Today's price again approaches major resistance at $3345.00 which coincides with the upper limit of the formation and 61.8 Fibonacci retracement of the last downward wave which started in May. Should a break higher occur, then the next target for bulls is located around $3790.00. Meanwhile 50 SMA (green line) and lower limit of the channel should act as nearest support. Source: xStation5