Good morning, crypto enthusiasts! As we begin yet another week, let’s review the interesting developments unfolding in the world of blockchain and digital currencies.
Bitcoin and ether are both experiencing a strong start this week, with Bitcoin staying above the $30K mark and ether witnessing a 1.3% increase, reaching $1,901. This mini-bull market is being driven by multiple applications for spot BTC ETFs. Analysts believe that this upward trend could lead to a continued rally for both currencies. However, volatility remains a concern, and if Bitcoin maintains its position above $30K, we could witness another leg up.
Crypto trading over the weekend saw a slight edge for traders with short positions. In the past 24 hours, there were $9.5 million in liquidated long positions and $7.10 in liquidated short positions, with open interest growing from $11.7 billion at the start of last week to $14.6 billion. On the regulatory front, the SEC has yet to announce any decision on pending spot Bitcoin ETFs from companies such as BlackRock, Invesco, and WisdomTree. The inclusion of a surveillance-sharing agreement might just be the key to getting that much-awaited approval.
In an interesting update from Japan, the National Tax Agency has amended the nation’s tax law to exclude unrealized gains of self-issued cryptocurrencies from taxation. This is a significant relief for crypto startups that issue their own tokens, as taxing unrealized gains can negatively impact entrepreneurial endeavors. Japan’s continued trend of regulatory adaptability has been praised by stakeholders, including Ripple’s policy lead for Asia, Rahul Advani.
According to Advani, Japan has established clear regulations and standards for cryptocurrency exchanges and has even prioritized customer protection over creditors in its bankruptcy laws, thus creating a healthy environment for crypto startups and investments. The country’s approach stands in stark contrast to the United States, where specific rules for the future of cryptocurrency taxation and regulation are still lacking.
As for recent developments in the crypto space, Bitcoin’s 20% price gain since last Thursday has caught attention, but experts suggest the market may witness a breather soon. Meanwhile, Prime Trust, a crypto custody firm, has been reported to have a shortfall in customer funds and is unable to meet withdrawal requests. Additionally, Coinbase’s market share in ether staking has dropped to its lowest since May 2021 amid regulatory pressure from the SEC.
In conclusion, while the world of cryptocurrencies continues to grapple with issues such as price volatility, regulatory challenges, and market fluctuations, Japan’s recent tax amendment signifies a step forward in creating a more adaptive environment for crypto startups. As the industry matures, there’s hope that other countries will follow suit and establish policies that prioritize crypto’s growth and stability.
Source: Coindesk
