News updates February 8, 2022
1. Bitcoin and Ethereum Keep Gains Above Key Hurdles, MATIC, SHIB, and XRP Rally
* Bitcoin price rallied above the USD 43,500 resistance zone.
* Ethereum climbed above USD 3,120, XRP surged 21%.
* MATIC rallied 14%, and SHIB is up almost 19%.
Bitcoin price remained in a positive zone above the USD 40,000 resistance. BTC cleared the USD 43,500 resistance level and spiked towards USD 44,500. It is currently (04:09 UTC) consolidating gains near USD 44,200.
Similarly, most major altcoins are gaining bullish momentum. ETH was able to settle above the USD 3,120 resistance level. XRP surged 21% and surpassed the USD 0.88 level. ADA broke the USD 1.22 resistance level.
Bitcoin price:
After a strong surge above USD 40,000, bitcoin price was able to clear the USD 43,500 resistance zone and test the USD 44,500 resistance zone. The next major resistance is near the USD 45,000 level, above which the price could accelerate higher.
On the downside, an immediate support is near the USD 43,800 level. The next key support is now forming near the USD 43,500 level, below which the price could start a downside correction.
Ethereum price
Ethereum price also gained bullish momentum above the USD 3,000 level. ETH cleared the USD 3,120 resistance and is now trading near USD 3,150 while the immediate resistance is at USD 3,200. The next key resistance is near USD 3,250, where the bears could take a stand.
An initial support is near the USD 3,120 level. The next major support is near USD 3,020, below which there is a risk of a sharper decline.
2. Other altcoins market today:
Many altcoins are up over 5%, including LUNA, AVAX, SHIB, CRO, LTC, LINK, UNI, ALGO, TRX, BCH, XLM, and FMT. Out of these, MATIC rallied 14% and surpassed the USD 2.0 level, increasing its weekly gains to 23%. SHIB jumped 19% in a day and 58% in a week, surpassing USD 0.0000338.
Overall, bitcoin price is gaining bullish momentum above the USD 43,500 level. If the bulls remain in action, BTC could even climb above the USD 45,000 level.
3. Crypto Investors Low on Funds Might Have To Cash Out To Pay 2021 Tax Bill
Accountants focused on digital assets are bracing for clients with hefty crypto tax bills, payments made more difficult by the recent crypto sell-off
As tax season ramps up, cryptocurrency accountant eyes are on looming tax bills that investors may not have earmarked enough cash for.
“If people are liquidating coins to come up with the cash for taxes for 2021, that also creates a taxable event for 2022,” said Shehan Chandrasekera, head of tax at Coin Tracker. “It’s going to get messy.”
As retail investors report 2021 cryptocurrency trading activity, they might be surprised by their tax bill — particularly newcomers, Ledgible CEO Kell Canty said.
Come April 15, a lot of investors are going to see that they had a taxable event where they either sold crypto for crypto or sold crypto for USD, and they didn’t allocate any portion of that to satisfying the capital gains,” Canty said.
4. SEC Seeks Public Consultation for Bitcoin ETFs, Metaverse ETF Price Battle Emerges
Although the U.S. SEC has been rejecting Bitcoin ETFs ON and OFF, the possibilities aren’t ending yet! The securities regulator is now reaching out to the public seeking advice on whether the exchange-traded funds linked directly to the price of Bitcoin i.e. spot Bitcoin ETFs, could be a vehicle of fraud.
Last Friday, the SEC was seeking public comments on the Grayscale product GBTC for turning it into a spot Bitcoin ETF. Previously, the SEC did the same for the Bitcoin Bitcoin ETF application.
The notice has requested public feedback on whether the proposed ETF will be susceptible to fraud and manipulation. However, it doesn’t give any surety about the SEC approving a Bitcoin ETF anytime soon. Over the last three months, the SEC has turned down major applications of Bitcoin ETFs from SkyBridge, VanEck, and WisdomTree.
A Bloomberg Intelligence report shows that despite the recent price volatility in the crypto market, demand for spot Bitcoin ETF will be sustained in the short term.
5. Russia to introduce strategies for crypto regulation by February 11
The Russian government, which is having an ongoing discussion on the future of decentralized digital currency in Russia, is expected to produce alternative scenarios for crypto regulation by February 11.
The development was disclosed in records from a meeting conducted at the White House in Moscow last week, Bitcoin.com reports citing the Russian business newspaper Kommersant.ru.
A clash between two rival views will likely decide the future of cryptocurrencies in Russia. While the Central Bank of Russia suggests a blanket ban on crypto-related activities, the Ministry of Finance is advocating for legalization under strict rules and without acknowledging Bitcoin as a payment method.
The latter has received most of the support, and if adopted, will mean that Russians owning digital money will be able to operate with them as with investment assets, such as making transactions through Russian banks, and paying taxes. All that, of course, under the watchful eye of the government.
6. Simple math says Russia could collect up to $13B in crypto tax each year
The analytic note mentioned that the estimates are purely an overview and based on a basic tax slab of 6%, which would be quite different once regulations are set in place.
7. U.S. crypto lobbying expenditure doubles in 2021 fueled by regulatory uncertainty.
Recent lobbying expenditures indicate that cryptocurrency and blockchain businesses are growing increasingly concerned about the future regulators who will be in charge of overseeing their respective industries.
Data presented by Finbold shows, that money spent on crypto lobbying increased by 116% in 2021, with $4.9 million being leveraged to try to influence lawmakers and public authorities with Robinhood, Ripple, and Coinbase dominating the amount spent on crypto lobbying.
Since 2017, the total amount of money spent on lobbying has increased significantly. Lobbying expenditures increased from $200,000 to $920,000 in 2018, representing the largest percentage increase. Nonetheless, the most substantial real increase happened between 2020 and 2021, with expenditure rising by $2.65 million more than doubling the previous year.
