Bitcoin price stabilizes as adoption continues to grow

Posted: 4 February 2022 4:09 am
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Bitcoin’s value has consolidated around the $36K–$37K range over the last 72 hours, leading many to believe that a trend reversal may be in order.

  • El Salvador pushes forward with its comprehensive crypto education plan by partnering with major crypto firm Paxful.
  • Washington congresswoman Suzan DelBene looks to rescind an existing law that gives the IRS power to tax crypto transactions as low as $200.
  • Thanks to its ongoing ascent, Bitcoin has wiped out its weekly losses completely.

The last 24 hours have seen Bitcoin (BTC) hold ground above the $40,000 threshold. The flagship crypto is exhibiting daily gains of 1.3% while trading at $41,729.

The turbulence comes at a time when the US Federal Reserve continues to hint at hiking interest rates come March, sending investors into a frenzy to seek out inflation-protected bonds. Over the coming months, the Fed also looks to slow down its purchase of debt-based assets, leading many pundits to believe that even more volatility may be witnessed across markets, including commodities, stocks and crypto.

Amidst these developments, Paxful — a prominent peer-to-peer (P2P) cryptocurrency service provider — revealed that it had joined hands with the El Salvador government to educate its residents regarding all things crypto, particularly Bitcoin. The central American nation, which legalized BTC last year, has initiated a new program called “La Casa Del Bitcoin” which will provide interested individuals with a host of free learning opportunities.

How to buy Bitcoin

New law seeks to prevent IRS from taxing sub-$200 crypto transactions

Suzan DelBene, an American senator from Washington, has reintroduced a bill aiming to exempt crypto owners from paying taxes related to crypto payments under the $200 mark. To elaborate, DelBene tabled the Virtual Currency Tax Fairness Act of 2022 on Tuesday to amend the Internal Revenue Code of 1986.

If successful, she will help eliminate a certain legal requirement that necessitates US tax filers to pay taxes on capital gains accrued from any crypto transactions worth $200 or more. She recently stated:

“Antiquated regulations around virtual currency do not take into account its potential for use in our daily lives, instead treating it more like a stock or ETF. The US must stay on top of these changes and ensure that our tax code evolves with our use of virtual currency.”

Capital continues to flow into the crypto market

Earlier this week, Fireblocks, a renowned crypto infrastructure provider, revealed that it rose another whopping $550 million as part of its Series C funding round, thus helping the company’s total valuation climb up to a sum of $8 billion.

Similarly, crypto wallet provider Phantom secured a sizeable $109 million from a number of VCs, bringing the firm’s total worth to around the $1.2 billion mark. In recent months, Phantom has emerged as one of the leading wallet solutions for the Solana ecosystem, with the platform boasting more than two million monthly users.

Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing.

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