The Crypto Compass Issue #49

Hello to our dear readers!

Several noteworthy developments have captured our attention. VanEck forecasts a significant rise in Bitcoin's value despite an impending U.S. recession in 2024. Meanwhile, Senator Elizabeth Warren is gaining traction with her Digital Asset Anti-Money Laundering Act, aiming to crack down on illicit uses of cryptocurrencies. Pudgy Penguins has unveiled 'Pudgy World', an immersive Web3 game, showcasing the expanding intersection of blockchain and gaming. Lastly, the bankruptcy case of the cryptocurrency exchange FTX takes a complicated turn with a massive $24 billion tax claim from the IRS, potentially delaying the resolution and return of customer funds. These events collectively highlight the dynamic and evolving nature of the digital economy and regulatory landscape.

VanEck Foresees Bitcoin Boom Amid 2024 U.S. Recession

VanEck predicts a U.S. recession in early 2024 but remains bullish on Bitcoin, expecting record highs by Q4. This optimism stems from potential U.S. spot Bitcoin ETF approvals and Bitcoin's halving in April, anticipated to drive significant investment and demand. Despite the recession forecast, VanEck's analysts believe Bitcoin could surge to $160,000, potentially making Satoshi Nakamoto Time Magazine's 'Man of the Year' if it hits $100,000 by December.

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Senator Warren Gains Support for Anti-Money Laundering Crypto Bill

Senator Elizabeth Warren, known for her critical stance on digital assets, has announced the addition of five senators as cosponsors to her Digital Asset Anti-Money Laundering Act. The bill, reintroduced in July, aims to combat the illicit use of cryptocurrencies in money laundering and terrorism financing.

The bipartisan bill, backed by various organizations and senators, is seen by Warren as a strong measure against crypto's illegal uses. She highlighted concerns over digital assets funding activities like North Korea’s missile program.

Critics suggest focusing on malicious actors rather than the technology itself, while supporters like cybersecurity expert Steve Weisman endorse the bill for addressing money laundering issues.

Pudgy Penguins Launches Web3 Game 'Pudgy World' on zkSync Era

Pudgy Penguins, a prominent NFT project, unveiled "Pudgy World," a Web3 game, at Art Basel Miami. Set for an alpha release next year, this immersive digital environment runs on the zkSync Era network. The game is open to all, but offers extra perks for NFT holders and toy purchasers. Amidst rising NFT values and a Walmart toy launch, Pudgy Penguins aims to bring blockchain gaming to a wider audience with unique in-game characters and benefits for its community.

Happenings of the week

• Avalanche's AVAX token rallies despite crypto market downturn

• Ark Invest’s Coinbase selling spree exceeded $100 million last week

• FIFA drops NFTs that offer chance at World Cup final tickets, moves to Polygon

• Bitcoin's 4% Drop Cools Overheated Funding Rates, Data Show

FTX Debtors Challenge IRS's $24 Billion Tax Claim

FTX debtors are challenging a $24 billion tax claim by the IRS, stating it could delay the return of customer funds in the bankruptcy case. The claim, initially $43 billion, was alleged without sufficient basis, according to FTX, which incurred billions in losses. Resolving this claim, which the debtors argue is baseless and time-consuming, is essential for advancing the bankruptcy proceedings.

The IRS has been investigating for months, and further delays could extend the case, with an eight-month additional investigation period proposed by the U.S. FTX's bankruptcy filing was in November last year, and former CEO Sam Bankman-Fried's sentencing is scheduled for February 2024.

Stay tuned for more updates next week! If you haven't yet, hit that subscribe button to ensure you never miss an issue. Found value in this edition? Please consider sharing it with your friends, colleagues, and fellow crypto enthusiasts. Together, let's navigate the world of crypto with clarity and insight!