News that the Trump administration is considering a second round of economic stimulus has caused markets to surge, including Bitcoin.
The asset’s entire uptrend from the Black Thursday bottom has almost entirely been fueled – ironically – by the money that the Fed is printing to prop up the economy. Here’s how that’s happening and what it could mean for the future of the first-ever cryptocurrency. Bitcoin Continues To Surge On the Heels of More Stimulus
Bitcoin price may not have the momentum yet to break through $10,000 and hold, however, the leading cryptocurrency by market cap has yet to set a new lower low on daily timeframes.
Any selloffs have been quickly bought up by eager buyers. These buyers may be increasingly eager, due to the steady supply of dollars that the Federal Reserve continues to print.
The Federal Reserve’s balance sheet recently toppled over $7 trillion.
RELATED READING | GOLD CHART SHOWS WHY BITCOIN IS THE FASTEST HORSE IN RACE AGAINST INFLATION
Stimulus efforts have helped keep the stock market’s recent rally from failing, and stimulus checks reaching individual taxpayers has found its way back into assets like gold, stocks, and even cryptocurrencies like Bitcoin.
All this money in consumer’s hands, yet nowhere to go and spend it, is leading to more asset purchasing. An increase in retail trading interest has only further bolstered the trading volume and volatility in traditional markets.
Risk appetite is returning to investors in a big way. Part of this is due to the economy rebounding faster than most expected – or perhaps it never fell anywhere near as bad as expected in the first place.
The other major factor is that many smaller time retail investors are using money that was handed to them by the Fed as part of stimulus checks. With more money potentially on the way, markets have surged as a result, and so has Bitcoin. Source: Federal Reserve
The Fed’s Growing Balance Sheet Matches Crypto’s Black Thursday Rebound
The Black Thursday selloff that rocked the stock market also saw the fourth largest single-day collapse in Bitcoin’s history. In less than a month, Bitcoin fell from over $10,000 to under $4,000.
From there, however, the asset has been in a steady uptrend. From the moment the Fed announced it had figuratively plugged in its printer and turned it up to full capacity, Bitcoin price has been soaring.
RELATED READING | HOW THE 2020 US PRESIDENTIAL ELECTION MAY BE KEEPING BITCOIN AT BAY
With June halfway over, the entire quarter thus far has been nothing but positive price momentum. The momentum has unfortunately not been strong enough to break through $10,000 and hold, but another round of stimulus money may be the push that the asset needs.
Coinbase showed an immediate correlation in the amount of $1,200 BTC purchases on the exchange following the rollout of stimulus checks of the same dollar amount.
If another round has a similar impact it could supply the buying pressure needed to finally smash through the powerful resistance level.
Featured image from Shutterstock. Source: https://bitcoinist.com/the-feds-latest-stimulus-is-ironically-fueling-bitcoins-continued-rise/?utm_source=rss&utm_medium=rss&utm_campaign=the-feds-latest-stimulus-is-ironically-fueling-bitcoins-continued-rise
Popular Crypt Analyst Says These Three Altcoins Are About to Take Off
Popular crypto trader Tyler Swope gave his top altcoin recommendations for the coming weeks, including Ethereum’s transition to the 2.0 network.
Popular crypto analyst and trader Tyler Swope, who is the host of the “Chico Crypto” YouTube channel, has named three altcoins (one mega-cap and two small-cap) he thinks are about to take off in the month of December.
According to the video he uploaded to his YouTube channel on December 2, Swope predicts that Ethereum (ETH) and two small-cap altcoins are going to have a strong performance in the coming weeks.
Swope says he is bullish on Ethereum, highlighting the successful launch of Eth2’s beacon chain on December 1. He reiterated that Ethereum was still in Phase 0 of its multi-stage migration from proof-of-work to proof-of-stake, and he expects more successes for Ethereum in the coming year..
Swope also points investors to the small-cap German-engineered altcoin Unibright (UBT).
Unibright describes itself as “a team of blockchain specialists, architects, developers and consultants with 20+ years of experience in business processes and integration,” and says that it offers “consulting, low-Code-integration tools, programmable DeFi and the Universal Business Token.”
On August 3, CONA Services launched a supply chain project using Unibright.
“Without enterprise, DeFi has been able to grow to nearly $14.5 billion in total value locked (TVL). What do you think is going to happen when enterprise DeFi is unlocked? That TVL will look like peanuts.”
The popular trader also recommends Morpheus.Network (MRPH) as a project for investors to watch. According to Swope, the supply chain optimization platform has strong ties to Coca-cola.
Featured Image Credit: Photo via Pixabay.com
India Reportedly Plans to Tax Crypto Investors As Bitcoin Price and Trading Activities Soar
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.
Bitcoin Breaks 2017 ATH But Gets Rejected: The Crypto Weekly Market Update
To say that this week was interesting would be an understatement. It had a little bit of everything.
Starting off, towards the beginning of the week, Bitcoin officially surged past its 2017 high and recorded a new all-time high, clocking at almost $20,000 but couldn’t really manage to surge past that point.
Naturally, as it always happens with the primary cryptocurrency, things took a turn for the exact opposite of what many were expecting. The price took a beating ad dropped to the low $18,000s in a matter of hours. This resulted in around $800 million worth of liquidations in less than 24 hours.
The bulls weren’t finished, however. They intercepted the move, and the price started recovering. At the time of this writing, Bitcoin is trading around $19,000, and it’s interesting to see where it would take from here.
Elsewhere, there was quite a bit of positive news throughout the entire week. Just yesterday, the audio streaming giant Spotify posted a job opening that revealed that it’s contemplating cryptocurrencies for payments. The acting Comptroller of the Currency in the US, Brian Brooks, said that banning crypto is not part of the country’s plans, reassuring that positive news will follow by the end of Trump’s term.
Unfortunately, the week also presented us with some bad news. As CryptoPotato reported, a large Australian exchange accidentally exposed over 270,000 customer emails in a serious privacy breach. This is not the first time an incident of this kind happens as in late 2019, BitMEX went through something similar.
In any case, the overall sentiment within the community remains overly positive. In fact, a cryptocurrency sentiment survey conducted by Kraken revealed that investors hold that Bitcoin will hit $36,000 in 2021. Will it happen? Only time will tell.
Market Cap: $562B | 24H Vol: 139B | BTC Dominance: 62.7%
BTC: $18,915 (+13.03%) | ETH: $587.46 (+16.13%) | XRP: $0.56 (+5.61%)
Audio Streaming Mogul Spotify Considering Cryptocurrency Payments. The popular audio streaming mogul Spotify has posted a job opening that reveals its intention to potentially incorporate bitcoin and other cryptocurrencies as a means of payment. With this, Spotify follows a group of major corporations that are putting effort towards implementing digital assets in their ecosystems.
Bullish Indicator to Buy Bitcoin Has Flashed Yet Again After 5 Months. The majorly bullish indicator has flashed green once again after five months. The Hash Ribbons, as it’s referred to, preceded BTC’s rallies to $10,500 in April and the run-up to $12,500 in August. It’s interesting to see if it will be correct again and if BTC will produce yet another leg up, taking it above $20,000.
Bitcoin Arrives At Wall Street: Crypto Indexes To Be Launched in 2021 By S&P Dow Jones Indices. In another news of serious cryptocurrency adoption, the leading index provider S&P Dow Jones Indices has revealed a partnership with the crypto-based Lukka to launch cryptocurrency indexes that follow 550 of the leading coins.
Bitcoin Price to Hit $36,000 in 2021: Kraken Crypto Sentiment Survey. According to a recent sentiment survey conducted by the popular cryptocurrency exchange Kraken, a majority of the respondents believe that Bitcoin will hit $36,000 in 2021. The same also think that Ether will clock in at a price of around $1450.
Visa Partners With Circle to Integrate USDC for Payments. The payment processing giant Visa has partnered up with Circle with the intention to integrate the USDC stablecoin within its network of merchants. The report also shared that 25 other companies involved in Visa’s Fast Track program would be included in the collaboration.
Australian Crypto Exchange Accidentally Exposes Over 270,000 Customer Emails. In what seems like another serious privacy breach, an Australian cryptocurrency exchange has accidentally exposed over 270,000 customer emails. This follows another mistake of the kind that happened with BitMEX in late 2019.
This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin – click here for the full price analysis.
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.
Spotify Thinking of Accepting Bitcoin
Litecoin, Cosmos, Dogecoin Price Analysis: 03 December
IlCOIN Launches Blockchain-Powered VR First on Steam
Greenheart Punt World Debut on DigiFinex
Mining City: A Blueprint for Success?
Yearn Finance Continues Growing with Latest DeFi Acquisitions
Bitcoin, Ether, and XRP Weekly Market Update November 30, 2020
Golff Vault 2.0’s New Launch – One-Stop Services Encrypted Bank
Facebook Libra changes name to Diem
J.P. Morgan Analysts Foreshadow Further Bitcoin Declines
BREAKING: Bitcoin Miners in China’s Yunnan Province Cut off from Electricity Supply
Ripple price prediction: XRP to move towards $0.75, analyst
Nicholas Baumer Appointed Chief Marketing Officer by Tickmill
FCA Exposes 4TFX as Crackdown on Clone Scams Continues
SEC Letter Reveals China’s Crypto Ambitions Threaten US
TRON’s BitTorrent Partnered with Huawei
5 Reasons Why Bitcoin Just Hit an All-Time High Price
After Lightning-Paced Tier-1 Sellout, ClinTex’s CTi Token Lists on KuCoin Today
Wall Street Regulator Sounds Alarm over Email Phishing Scam
Coinbase Reports Delays in Processing Bitcoin Withdrawals Due to Network Congestion
$100 Million in Bitcoin From Bitfinex Hack Has Moved
Bitcoin (BTC) Gives Highest Ever Monthly Closing At $19,700 in November 2020
Bitcoin Decimates Bears With Quick Recovery Above $19,800
XRP up 170% in a Month Ahead of Flare Token Airdrop: What You Need to Know
Ethereum Classic Hashrate Rises Following Successful Thanos Hardfork
Nearly $100 million in bitcoin tied to 2016 Bitfinex hack has been moved
Further Declines in Bitcoin Price Possible Though Grayscale is Crucial, Notes JPM Analyst
JD Coin Interview on Exploring the Block
Ethereum Prices Return to $620 Resistance on ETH 2.0 Launch Day
Bitcoin and Crypto Worth $4 Billion Seized From PlusToken Ponzi Group
CoinMarketCap’s Twitter poll reveals the problem behind online voting
Crypto Market Cap Gained $30 Billion While BTC Eyes $19K
Bitcoin Worth $97M from 2016 Bitfinex Hack on the Move
BitMEX appoints Alexander Höptner as CEO
Market Analysis Report (30 Nov 2020)
Russian government to recognize bitcoin as property.
Coronavirus-Induced Poverty Will Bring More Bitcoin Crime in 2021: Kaspersky Report
Price Analysis: AAVE bulls target $100
Bitcoin SV long-term Price Analysis: 30 November
Blockchain3 months ago
Bitcoin price volatility expected as 47% of BTC options expire next Friday
Blockchain3 months ago
Blockchain Bites: Is DeFi an Inside Deal?
Blockchain3 months ago
Market Wrap: Bitcoin’s Powell-Induced Price Swing; Ethereum Still High on Gas
Blockchain3 months ago
Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto
Blockchain3 months ago
Ethereum: Is the HODLing in yet?
Blockchain3 months ago
Hackers Have Been Trying To Crack Bitcoin Wallet Worth $750 Million But Here’s The Catch
Blockchain3 months ago
YFI Founder Puts Himself Forward for Uniswap (UNI) Delegation Duties
Blockchain4 months ago
Wealthfront Lures Millenials With Crypto Memes and Tactics