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Bitcoin Retargets $10,000 on Fed’s Corporate Bond-Buying Program

Bitcoin pared its Monday losses after logging a surprising intraday trend reversal. The cryptocurrency rebounded by as much as 7.82 percent from its session low near $8,895. It is now back to targetting $10,000 as the Federal Reserve announced it would extend its corporate bond-buying plan. Bitcoin price climbed Tuesday, logging a dramatic retracement after the Federal Reserve signaled its latest efforts to support the U.S. economy through the ongoing pandemic. The BTC/USD exchange rate […]

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Bitcoin pared its Monday losses after logging a surprising intraday trend reversal.
The cryptocurrency rebounded by as much as 7.82 percent from its session low near $8,895.
It is now back to targetting $10,000 as the Federal Reserve announced it would extend its corporate bond-buying plan. Bitcoin price climbed Tuesday, logging a dramatic retracement after the Federal Reserve signaled its latest efforts to support the U.S. economy through the ongoing pandemic.
The BTC/USD exchange rate swung by as much as 7.82 percent after settling an intraday low yesterday at $8,895. Buying demand in the world’s leading cryptocurrency got a boost after the Fed announced that it is purchasing up to $250 billion in individual corporate bonds. Bitcoin price chart from TradingView.com showing its recovery. Source: TradingView.com
Earlier, bitcoin had plunged by more than 10.10 percent from its June 10 high of $10,011. Its downside move came mostly in the wake of a similar correction trend in the U.S. stocks. The positive correlation between Bitcoin and the U.S. benchmark S&P 500 has grown since March 2020 crash.
The proximity between the two markets continued this week. Both fell drastically on Monday, with Bitcoin leading the losses after taking cues from the S&P 500 futures. Nevertheless, opportunistic traders jumped back into the markets as the sessions were on, pushing them up using the Fed narrative.
“This is yet another sign the Fed is going to do everything under their power to help liquidity,” Ryan Detrick, a senior market strategist for LPL Financial, told WSJ. “Worries over a second wave? No worries, the Fed is here.”
More Gains Ahead for Bitcoin
The Fed’s stimulus efforts so far have helped push both Bitcoin and the S&P 500 from their March 2020 lows. Analysts believe that the central bank would keep acting like a stabilizing force for these markets against fears of a second wave of virus infections in the U.S. and China.
Traders are looking bullish on Tuesday as well. Futures tied to the S&P 500 were up 1.43 percent ahead of the European session open. It hints that the U.S. benchmark would open the day in the green after the New York opening bell. Similarly, Dow Jones and Nasdaq Composite are also looking at a healthy start. Table from WSJ.com showing futures market data. Source: WSJ.com
As Bitcoin’s erratic correlation with the U.S. stocks grow this week, the cryptocurrency could capitalize on the optimistic U.S. stock market to test its hardcore resistance level of $10,000.
“For as long as the FED can print money and do whatever they want, your technical analysis is useless calling tops is pointless,” a pseudonymoyus trader wrote on Twitter.
Overbought Rallies
Meanwhile, specific technical metrics in the stock market, such as the Relative Strength Indicator, warns that the equities stand overbought. That amounts to a negative correction, which, in turn, poses risks to Bitcoin’s bull run towards or above $10,000.
“After hours for stocks are all up. Kind of feels like a trap. We had all day to make some moves and nothing happened. Kind of has me worried,” said another trader.
Bitcoin’s Relative Strength Indicator, in comparison to stocks, reads neutral. The cryptocurrency has adequate room to move in either direction. Source: https://bitcoinist.com/bitcoin-retargets-10000-on-feds-corporate-bond-buying-program/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-retargets-10000-on-feds-corporate-bond-buying-program

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Injective launches gold synthetic commodities on Solistice Testnet

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Injective Protocol announced the launch of their first synthetic commodity market on the Solistice Testnet. According to the announcement, users can now trade gold perpetual markets with up to 20x leverage. The price oracles utilized will enable real-time feeds which further allows traders to trade gold 24/7 on Injective.

“We have chosen to begin with the introduction of gold as it is currently one of the most highly traded assets worldwide.”, stated the protocol, further adding that user interest derived from a survey from their community also aided this decision.

The layer two DEX is reportedly exploring the addition of both new synthetic assets and new markets not available anywhere else, a few days after the introduction of initial markets on the testnet.

The initial markets will include the following: Injective, Bitcoin, Ethereum, Binance Coin, Polkadot, Elrond, ChainLink, Uniswap, and Yearn Finance.

These markets were also supposedly chosen based on an analysis of user sentiment and traction across channels – an indication that this selection of coins was the most popular amongst the larger crypto community.

Injective Protocol is backed by a prominent group of stakeholders including Pantera Capital, and the leading cryptocurrency exchange, Binance.

The diversification of its product offering into synthetic assets sees it joining a list of protocols that have recently ventured into the same space, the newest example being the newly launched Mirror Protocol, which tracks the price of stocks, futures, exchange-traded funds, and other traditional financial assets.

As the DeFi industry continues to evolve, the emergence of new asset classes such as synthetic commodities will soon be a part of this ecosystem of alternative finance.

Source: https://eng.ambcrypto.com/injective-launches-gold-synthetic-commodities-on-solistice-testnet

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Ethereum community explodes over proposed stablecoin act from U.S. representatives

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The crypto community was slammed with news earlier this week that U.S. House representatives are looking to crack down on stablecoins.

The Office of Congresswoman Rashida Tlaib, who is heading this new proposed legislation, wrote in a press release announcing this move:

“The COVID-19 Pandemic has exposed numerous barriers to accessing and utilizing mainstream financial institutions, leaving many to look to the financial technology sector to meet the financial servicing needs of low- and moderate-income (LMI) consumers for everything from faster direct payments, access to loans, and even access to bank accounts. LMI consumer vulnerabilities could be exploited and obscured by bad actors looking to issue stablecoins.”

This “STABLE Act” would require that any issuer of a stablecoin must comply directly with banking regulations. This would basically harm the DeFi space by only allowing KYC-ed individuals to transact with decentralized applications.

Further, supporters of the act on Twitter, including one professor/digital currency specialist at Stanford, Rohan Grey, has basically said that nodes should be disallowed from processing illegal stsablecoin transactions:

“You’re taking the Ethereum network as a fixed variable and saying that it’s impossible for node validators on it to know what transactions they are verifying. I’m saying running Ethereum itself is a *choice* and if that’s an issue then change the code or run a diff network.”

The crypto space, especially the Ethereum community, is not taking this lying down.

Ethereum & crypto community fires back over STABLE Act

Scott Lewis, the founder of projects like DeFi Pulse, wrote that a key advocate of this STABLE Act is making some dangerous and incorrect assumptions about Ethereum and cryptocurrencies as a whole.

The advocate, Nathan Tankus, said that Ethereum users are subject to “mediation conducted by the Ethereum Foundation when they use the Ethereum Network” because no Ethereum users actually run their own nodes.

Many in the space have fired back against these assertions, pointing to their own nodes and evidence showing that cracking down on stablecoins would actually harm the disenfranchised.

CoinCenter, a key advocate for positive and logical crypto regulation in Washington, has received tens of thousands of dollars of donations since the STABLE Act was released.

Stablecoins still gain traction

While stablecoins are coming under fire, they are seeing support from institutions.

The U.S. government itself was revealed to be working directly with Circle, the issuer of USDC, to distribute relief payments to Venezuelans in need.

Further, it was more recently revealed that Visa is teaming up with Circle to allow businesses to accept payments in USDC.

Posted In: Regulation

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Source: https://cryptoslate.com/ethereum-community-explodes-over-proposed-stablecoin-act-from-u-s-representatives/

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India Reportedly Plans to Tax Crypto Investors As Bitcoin Price and Trading Activities Soar

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Barely ten months after the Indian Supreme Court lifted the RBI’s ban on cryptocurrency transactions, fresh reports from yesterday revealed that the country’s tax authority is now keeping a close watch on crypto traders as Bitcoin’s price continues its bullish trend.

Taxing Crypto Gains

According to local media, the Indian Tax Department is already in possession of data belonging to investors who invested in Bitcoin or cryptocurrencies through banking channels before the RBI’s ban in 2018. 

This development is coming after data shows a tremendous increase in crypto trading activities in India. Since the crypto ban was lifted earlier this year, retail investors between the ages of 25 and 40 have been spending millions of dollars on crypto trading every day. 

Over $25 Million Daily

Two of India’s largest crypto trading platforms, Binance-acquired WazirX and CoinDCX, saw a significant increase in activities over the last six months. According to an earlier report, WazirX recorded a massive 125% increase in user signups in the last two quarters. The exchange also has a daily trading volume of $19-26 million, with more than 85% of the transaction coming from Indian traders. 

Some experts believe it will be difficult for the country to tax crypto because there’s no regulation in place for crypto dealings. They feel a regulatory framework will provide the needed clarity to make taxation easier. While India is yet to release its crypto regulation, an earlier report suggests that the country may regulate crypto as commodities.

Declaring Bitcoin Profits As Capital Gains

Although it is unclear how India plans to implement the tax law, sources familiar with the matter claimed that the country’s taxman is already preparing to collect tax on the gains made from Bitcoin. And notice may be sent out to investors if “something goes out of this.”

Experts believe that the tax authorities may classify crypto gains as business income, and investors may have to pay up to 30% tax on profits made from selling cryptocurrencies. 

However, some tax experts are advising their clients to declare their Bitcoin earnings as capital gains, which is similar to profits generated from shares.

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Source: https://cryptopotato.com/india-reportedly-plans-to-tax-crypto-investors-as-bitcoin-price-and-trading-activities-soar/

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