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Bitcoin Flash Crashes to $48K Amid Panic over Cryptocurrency Taxation

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After Bitcoin (BTC) hit its all-time high of $64,895 on April 16, the cryptocurrency retreated downwards, plunging to its lowest level since March. It is trading around $47, 931 at the time of writing.

A tweet by FXHedge attracted widespread attention last weekend, which claimed that the U.S. Treasury Department was cracking down on money laundering with cryptocurrencies. Subsequently, BTC dropped more by than 15% over the weekend. Although there was a rebound in the next few days, the crypto market panic continued.

Affected by U.S. President Biden’s plan to nearly double the capital gains tax on the wealthy class, Bitcoin fell to its lowest level today, since March. It is currently trading at $48,338.

The advent of the U.S. tax season has made American investors in crypto assets panic. For those US investors who have held cryptocurrencies for more than one year, cashing out for selling digital assets will face the risk of high capital gains taxes. Take BTC as an example. In the past year, it has risen as high as 700% from $7,138 to $50,326  The Internal Revenue Service has also increased its taxation on the sale of encrypted assets. This may have caused many long-term investors to quickly sell in order to avoid capital gains tax.

Bitcoin Price Analysis

Source: BTC/USD Daily via TradingView

Judging from the daily candlestick, Bitcoin has fallen below its 50-day moving average price on the daily chart with the bullish momentum has faded.

At the time of writing, the bulls are actively pushing the price above the 100 day-Exponential Moving Average (120-EMA) of $49,286. If today’s closing price does not stand above the 100-EMA, then the bears will push Bitcoin’s price down to the 120-EMA of $46,897. A surge in the number of sell orders will push BTC below the 120-EMA of $46,897 support level and may trigger a more severe correction to the lowest point of this year – $43,273.

The bearish MACD index indicates that the bears are currently dominating the market. The Relative Strength Index reversed its direction towards the overselling zone, close to the zero axes. The stochastic Relative Strength Index may translate to a sharp declining trend toward the $43K level, as seen in late February this year, and it may consolidate around the zero axes for a period of time before the next segment takes off, which suggests that Bitcoin will likely experience a relative pullback.

Image source: Shutterstock Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://Blockchain.News/analysis/bitcoin-flash-crashes-48k-amid-panic-cryptocurrency-taxation

Blockchain

Japanese Assembly Seeks to Make Tokyo a ‘Crypto Trading Center’

From the latest, a member of the Tokyo Metropolitan Assembly wants to modify the Japanese capital into a “cryptocurrency trading center”. 

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Japan’s capital Tokyo is among the forefront of the world metropolitans that is steadily becoming the Cryptocurrency Trading Center, and undoubtedly, politicians in the capital city are looking to strengthen the trend even further.

From the latest, the Tokyo Members of Assembly want to modify the Japanese capital into a “trading center” for cryptocurrencies.

Japan to Transform Tokyo into Cryptocurrency Trading Center

The third term assembly member in question Yuu Ito commented on the various possibilities to strengthen the city’s financial sector by expanding its involvement with the digital asset business.

Nobuko Irie, a fellow Tokyo Metropolitan Assembly member, commented in a similar vein:

“The country is printing deficit-financing bonds in the wake of the corona. Even in Tokyo, we must create new financial resources by setting technology that can generate wealth like blockchain as a growth strategy.”

The statement from the family member came after his recent support of economic plans unveiled by Yuriko Koike, governor of Tokyo.

The major challenges to compete in financial hubs like London, Hong Kong, Macau faced by Tokyo are also being mentioned by Ito.

He believes,

“High rates in bitcoin (BTC) tax might have deterred investors and companies from being active in Japan, and that significant action is necessary to advance the industry domestically.”

Healthy Taxation Environment for Bitcoin is now Guaranteed

Irie praised how the adoption of the first digital currency has been rising worldwide. However, concerns are raised on how politicians are handling the matter. 

She urgently describes necessary action for Tokyo to become a cryptocurrency trading center along with highlighting the opportunities the challenging times have created to accelerate policy adaptation to develop a trading hub in the capital.  

Politicians should now tackle the issues of monetary policy and taxation around bitcoin. If you do it in the nation, you will lose the sense of speed, so create a special zone in Tokyo to make it tax-free in the city. I think it is the role of politicians to identify issues and clear them systematically while running. When we have to turn the economy around, we need to create a mechanism that prevents money from staying. For that purpose, virtual currency and blockchain can be used. Based on the fact that I learned this time, I think it is necessary to accelerate.

READ  Ripple Labs Scores Victory, Wins Lawsuit Against Tetragon

#Bitcoin #Japanese Assembly #Taxation Environment for Bitcoin #Tokyo Cryptocurrency Trading Center #Tokyo Metropolitan Assembly

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/japanese-assembly-seeks-to-make-tokyo-a-crypto-trading-center

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TA: Bitcoin Shows Signs of Rally, Here’s What Could Trigger More Upsides

Bitcoin price recovered losses and surpassed the $56,550 resistance zone against the US Dollar. BTC is likely to rally if there is a close above $58,000 and the 100 hourly SMA. Bitcoin remained strong above $54,000 and it climbed above $56,550 The price is now facing resistance the $57,500 level and the 100 hourly simple […]

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Bitcoin price recovered losses and surpassed the $56,550 resistance zone against the US Dollar. BTC is likely to rally if there is a close above $58,000 and the 100 hourly SMA.

  • Bitcoin remained strong above $54,000 and it climbed above $56,550
  • The price is now facing resistance the $57,500 level and the 100 hourly simple moving average.
  • There was a break above a key bearish trend line with resistance near $56,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong increase if there is a close above $58,000 and the 100 hourly SMA.

Bitcoin Price Recovers Losses

Bitcoin declined sharply after it failed to test the $60,000 resistance. BTC broke the $57,500 and $55,500 support levels. However, it found support near $53,500 and it recently started a fresh increase.

There was a decent recovery wave above the $55,000 and $56,000 levels. The price cleared the 50% Fib retracement level of the key decline from the $59,500 swing high to $53,460 swing low. There was also a break above a key bearish trend line with resistance near $56,800 on the hourly chart of the BTC/USD pair.

The pair is now facing resistance the $57,500 level and the 100 hourly simple moving average. It is also stuck near the 61.8% Fib retracement level of the key decline from the $59,500 swing high to $53,460 swing low.

Bitcoin Price

Source: BTCUSD on TradingView.com

To start a strong increase, bitcoin must clear the $57,500 barrier and the 100 hourly SMA. The next immediate resistance is near $58,000, above which the price could grind higher towards the $59,500 level. The main resistance is still near the $60,000 zone.

Fresh Drop in BTC?

If bitcoin fails to clear the $57,500 resistance or $58,000, it could start a fresh decline. An initial support on the downside is near the $56,500 level.

A downside break below the $56,500 support zone could lead the price towards the $54,850 pivot level. Any more losses might call for a fresh test of the $53,500 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $56,500, followed by $54,850.

Major Resistance Levels – $57,500, $58,000 and $59,500.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/analysis/btc/bitcoin-shows-signs-of-rally-60k/

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Palantir Q1 Earning Suggests “Firm is Bullish on Bitcoin” 

Chairperson of Billion-dollar data analytic firm Peter Thiel of Palantir has reportedly revealed its plans for accepting Bitcoin as a mode of payment.

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Chairperson of Billion-dollar data analytic firm Peter Thiel of Palantir has reportedly revealed its plans for accepting the first digital currency, Bitcoin as a mode of payment. According to the reports on earnings of Palo Alto firm’s Q1 2021, Palantir reported a $341 million revenue and 49% growth.

Palantir Update-Company’s Stance on Bitcoin

The main point to be discussed among cryptocurrency enthusiasts is the company’s take on Bitcoin. In an earnings call, Palantir confirmed that,

“It was considering adding Bitcoin to its balance sheet and accepts Bitcoin as a payment option.” 

However, Palantir’s first hint to the move into the crypto space, is not surprising to many, as he is already known for his interest in the crypto-sphere.  As per the recent declaration, Bitcoin can be a “Chinese financial weapon” soon. 

Palantir also supports stablecoin Project Reserve Protocol. The year 2021 crypto has proved to be in favor of large companies focusing on alternate modes of accepting payment. As the acceptance of crypto assets has increased tremendously. 

Institutional Interest in Accepting Bitcoin as Mode of Payment

From the latest, Tesla reveals its purchase of $1.5 billion worth of digital currency. The electric car-making company has started accepting Bitcoin as an alternate mode of payment from its clients. Other big players, including insurance firms and investment banks, have invested as interest in cryptocurrency growth.

Palantir technology has always been a matter of controversy, which is sometimes described as ‘unethical’. The technology supplies software and analytics tools for a variety of large entities, including the U.S. government and police departments. It currently has 149 customers. the evaluation hit $16.5 billion as it went public on the New York Stock Exchange last September. The share price has shot up since then, with the firm now valued at $30.44 billion. 

READ  Former CIA Chief Endorses Bitcoin, Contradicts Conventional Charges of Illicit Use

#$16.5 billion #$30.44 billion #Bitcoin #Palantir’s Q1 Earning #Palo Alto firm’s Q1 2021 #Peter Thiel

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/palantir-q1-earning-suggests-firm-is-bullish-on-bitcoin

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Globe Crypto Derivative Exchange set to offer new derivatives products this May

The nascent digital assets market continues to evolve as new products and platforms continue to flood the landscape. The Globe Crypto Derivative Exchange is set to be at the forefront of this rapidly evolving niche since it will offer a suite of innovative futures contracts and features, allowing both corporate and individual traders to trade […]

The post Globe Crypto Derivative Exchange set to offer new derivatives products this May appeared first on BitcoinerX.

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The nascent digital assets market continues to evolve as new products and platforms continue to flood the landscape.

The Globe Crypto Derivative Exchange is set to be at the forefront of this rapidly evolving niche since it will offer a suite of innovative futures contracts and features, allowing both corporate and individual traders to trade short Bitcoin (BTC), Ether (ETH), and DeFi Tokens with more leverage via perpetual futures contracts.

Globe Crypto Derivatives Exchange

Globe Crypto Derivatives Exchange aims to become a pioneer by offering exciting new derivative products. Investors can take advantage of these innovative products to boost their funds’ performance beyond what they might achieve using other crypto or traditional financial exchanges.

The derivatives trading platform is set to offer new trading products such as VIX futures, which is designed to make futures trading easily accessible to both institutional and retail investors. With its offerings, investors can speculate on the price of an underlying asset without directly trading in them.

Contracts on the Globe platform are all perpetual futures contracts, which is a type of derivative. These contracts offer traders an easy way to hold leveraged positions without expiration dates while minimizing risk from the underlying asset.

Globe will initially support future products such as ETH/USD, XBT/USD, UNISWAP/USD and XBT/VIX. The platform is backed by Y Combinator, Tim Draper, and Pantera Capital, among others. The platform is set for launch sometime in May 2021 but a definite date has not yet been announced.

GDT Token To List On May 12 After The Ongoing Liquidity Bootstrap Pool

Globe will list its token on May 12 after the ongoing Liquidity Bootstrap Pool auction is finished. Called the Globe Derivative Token (GDT), it is the native utility token of the platform and can be used in a variety of transactions such as for payment of fees, fee discounts, trading margin, and in the platform’s rewards program.

Globe is currently auctioning 14 million $GDT, which is 3.5 percent of its total supply, in a Liquidity Bootstrap Pool by Balancer. The auction started on 12:00 UTC+0, May 10, 2021, and will end at 12:00 UTC+0, May 12, 2021. Click here for more details on the LBP. For the latest updates on the project, check out the Globe Exchange’s Medium page.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinerx.com/blockchain/globe-crypto-derivative-exchange-set-to-offer-new-derivatives-products-this-may/

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