Bitcoin fundamentals remain solid suggesting a potential bull-run in the near term
If Bitcoin can muster investor support around the $43K range, the currency could potentially scale beyond $50K.
- The island nation of Bahamas may allow its residents to start paying taxes using various digital currencies by the end of the year.
- Bitcoin’s total capitalization currently stands at $760B, representing a crypto market share of over 39%.
- Bitcoin’s correlation with the stock market remains high, leading many analysts to believe that more volatility may be incoming.
The last 24 hours have seen Bitcoin exhibit moments of bullish momentum, taking the digital asset close to the $43K mark before sliding once again, plunging below the all-important $40K psychological barrier once again. BTC’s monthly losses now stand at -4.4%, with the cryptocurrency trading at $39,726.
In terms of where Bitcoin may be headed in the near term, analysts believe that the currency is exhibiting extremely strong fundamentals. If it can surge past the $43K, there is a chance that another bull run may be in order. A somewhat similar opinion is shared by independent crypto pundit Michaël van de Poppe, who believes that $42,300 is the crucial level that BTC needs to overcome. He added: “This is also a daily breaker. If it breaks, I’m assuming a new test of $46,000 is around the corner and possibly $50,000.”
According to ExoAlpha CIO David Lifchitz, Bitcoin remains stuck between $46,000 to $61,000 because of the macro-factors currently surrounding the global finance sector. Furthermore, he highlighted that if Bitcoin’s “correlation” with tech stocks continues to remain high — coupled with the Fed’s ongoing interest rate hikes — the price of the flagship crypto could decline further.
Bahamians may be able to pay their taxes using crypto soon
As per a new report, individuals residing in the island nation of the Bahamas may soon be able to use digital assets to pay for their yearly taxes. According to a whitepaper released earlier this week, come 2022, Bahamians will most likely be able to utilize various digital currencies — including its local central bank digital currency (CBDC) ‘the Sand Dollar’ — for their filings. On the subject, a statement from local authorities reads as follows:
“The Government will endeavor to ensure that digital assets are not used for the evasion of taxes or sanctions, and will seek to ensure compliance with all applicable Tax information exchange agreements (TIEA) and domestic laws and agreed OECD standards.”
Such moves may continue to positively impact investors, leading to the market experiencing more stability in the long term.
Coinbase reportedly in talks to buy cryptocurrency exchange BtcTurk
According to Turkish media outlets, Coinbase, one of the largest cryptocurrency exchanges in the world, is currently holding negotiations with trading platform BtcTurk, with both firms having reportedly agreed to a buyout touted to be worth approx $3.2 billion. Coinbase’s move comes after CEO Brian Armstrong announced that he plans on expanding his company’s footprint to every country where digital asset exchanges are allowed to operate legally.
Following Coinbase’s well-received Initial Public Offering (IPO) last year, the company has continued to make inroads into several untapped regions in recent months. As a result, the company has helped bring more legitimacy to the market, potentially helping drive the price of prominent cryptos (including BTC) higher.
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