Investors appear to be growing optimistic about the future of the cryptocurrency market, which could lead to more upside price momentum. Key Takeaways

The cryptocurrency market is back in the spotlight after a bullish impulse pushed up prices for most digital assets. Indicators show further upward potential for Ethereum, XRP, and Litecoin, though important resistance levels are holding them down.

Since the Mar. 12 crash, Ethereum has been making a series of higher highs and higher lows. The bullish momentum has taken its price up more than 117%.

The smart contract giant surged from a low of $90 to a recent high of $190.

Despite the substantial price recovery over the last month, the TD sequential indicator estimates that Ether may have more upwards potential.

This technical index presented a buy signal the moment the current green two candlestick began trading above the preceding green one candlestick. If the bullish formation is validated by a further spike in demand, ETH could enter an upward countdown all the way up to a green nine candlestick.

Such a positive scenario seems likely given the amount of interest returning to the cryptocurrency industry, especially as Bitcoins halving event approaches.

Nonetheless, IntoTheBlocks In/Out of the Money Around Price model suggests that for Ether to continue reaching higher highs it would first need to move past the $200 resistance level. Approximately 1.2 million addresses bought nearly 7.8 million ETH around this price level.

An increase in the buying pressure behind Ether could allow it to break above this massive supply wall. If this happens, the bulls will likely take control of ETHs price action, validating the outlook presented by the TD sequential indicator.

Under such circumstances, the next levels of resistance to watch out are provided by the 127.2% and 161.8% Fibonacci retracement levels. These resistance barriers sit around $223 and $260, respectively.

Although everything seems to indicate that Ethereum has more room to go up, the global economic environment tells otherwise. Thus, an important support level to pay close attention to sits around the 78.6% Fibonacci retracement level and the rising trendline.

A daily candlestick close below $172 may invalidate the bullish outlook and increase the odds of a further decline towards $155 or $142.

For the first time since December 2018, the TD sequential setup suggests that it is time to buy XRP based on the 1-month chart. This technical indicator presented a bullish signal in the form of a red nine candlestick that has morphed into a green one candle due to the price action seen this month.

If Mays candlestick manages to move above Aprils monthly close, the bullish formation would likely be validated. This would indicate that XRP may surge for one to four monthly candlesticks or begin a new upward countdown.

Adding credence to the bullish outlook, the parabolic stop and reverse, or SAR, presented a buy signal on XRPs 1-day chart. Every time the stop and reversal points move below the price of an asset, it is considered to be a positive sign.

The parabolic SAR flip estimates that the direction of the trend for the cross-border remittances token changed from bearish to bullish.

Now, XRP would have to close above its 75-day exponential moving average to continue advancing further. By turning this resistance level into support, the odds for a move towards the 200-day exponential moving average, which sits around $0.23, increases substantially.

It is worth mentioning that XRP has been in a multi-year downtrend since the January 2018 peak. Since then, this altcoin is making a series of lower lows and lower highs. As a result, until it closes above the Feb. 15 high of $0.35, every bullish signal must be taken with caution.

Like the altcoins previously mentioned, Litecoin is also signaling that it is ready to resume its uptrend and climb higher. However, the 50-day exponential moving average is holding strong, preventing LTC from achieving its upside potential.

Since the beginning of the month, this barrier has been able to reject the price of Litecoin twice. Considering that resistance weakens the more times it is tested, sooner or later it could turn into support.

Breaking above the 50-day exponential moving average might send LTC towards the 100 or 200-day exponential moving average. These resistance levels sit at $49 and $54, respectively.

On the downside, however, investors pay close attention to the 23.6% Fibonacci retracement level since failing to hold could jeopardize the bullish outlook.

An increase in the selling pressure behind LTC that allows it to close below this support level could trigger a sell-off among market participants. Such a bearish impulse would likely send Litecoin down to try to find support around $39.

Regardless of the havoc that the pandemic has caused in the global financial markets, investors appear to be growing optimistic about what the cryptocurrency industry has to offer. Now, even Bloomberg analysts are bullish on Bitcoin, stating that this year it could transition toward a quasi-currency like gold.

The TIE has also seen an impressive rise in the number of Bitcoin tweets mentioning the halving. The cryptocurrency insights provider affirmed that halving mentions on Twitter surged over 63%. Meanwhile, the overall conversations on social media about BTC are up 6%.

As the block rewards reduction event approaches, the focus appears to be shifting towards Bitcoin. Nonetheless, the high levels of correlation in the cryptocurrency market suggest that an increase in the price of the flagship cryptocurrency could see the entire market following suit.

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Ethereum, XRP, Litecoin Turn Bullish on Bitcoins Strong Performance - Crypto Briefing

Tezos (XTZ) continues to impress analysts as its price recovers rapidly from the crypto-wide crash in March.

The digital asset is trading at $2.37 at time of writing, up from around $1.36 in mid-March. A pseudonymous analyst who goes by the name Teddy tells his 30,000 followers on Twitter that Tezos is now flat out defying the laws of gravity.

Fellow analyst and Cointelegraph contributor Michal van de Poppe says the asset is currently battling an important line of resistance. If it can break through, a move to $2.60 could be in the cards. If not, a correction is likely in store.

Tezos is a smart contract proof-of-stake blockchain designed to allow holders of the coin to help power the network and earn rewards in return. XTZ is currently the 10th largest crypto asset by market cap, according to CoinMarketCap.

Weiss Rankings also recently ranked Tezos first among 120 cryptos in terms of technology, beating out leading cryptocurrencies like Bitcoin, Ethereum and XRP.

As Tezos and other assets continue to recover from Marchs Covid-19-related plummet, crypto whales appear to be accumulating Bitcoin at levels not seen since 2017.

The number of trading entities holding at least 1,000 BTC increased prior to the price drop last month and then accelerated during and after the crash, according to crypto analytics firm Glassnode.

Researchers say this is an optimistic sign that the largest crypto investors on the ledger believe BTC is poised for further growth. Analyst Cole Carner agrees.

Meanwhile, analyst Josh Rager saysBTC is still significantly correlated with the stock market, and a plunge in traditional markets could trigger another move to the downside.

BTC still moving steady with stock market. Again, not a 1:1 correlation, but no reason to draw $2k to $3k BTC meme charts. Unless the S&P 500 tanks, Bitcoin will hold above $6k. Potential future pullbacks in both markets but until stocks drop, Im not bearish on Bitcoin price.

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Analyst Says One Cryptocurrency Is Defying Laws of Physics As Bitcoin (BTC) Whales Rise in Record Numbers - The Daily Hodl

Apr 25, 2020 at 09:29 // News

As cryptocurrencies and blockchain technology gain root in the world, governments are becoming more involved in the industry through taxation.

Various countries have expressed various moods to cryptocurrencies. The truth is, cryptocurrencies have taken the world by storm, after it first launched in 2009 and grew a hundredfold in a short span. Many countries are still in the process of developing laws that touch every aspect of the crypto industry, including taxation. Given the volatile and virtual nature of cryptocurrencies, it has been a bit of a challenge to policymakers to cover it in full.

For instance, the United States now wants every citizen with savings in their cryptocurrency wallets to pay an income tax. The US Internal Revenue Services (IRS) sent at least 10,000 emails to cryptocurrency users urging them to clear off their taxes, as coinidol.com, a world blockchain news outlet, has reported.

Recently, Singapore has also joined the league of countries presently imposing some sort of fiscal policy to guide the crypto industry in the world. The Inland Revenue Authority of Singapore (IRAS), in a 14-paged statement titled Income Tax Treatment of Digital Tokens released on its official site on April 17, 2020, clarified on a number of income tax treatments for transactions involving digital tokens. The same modification also touched Initial Coin Offering (ICO) operations.

The good news is that the countries that are regulating cryptocurrency operations through fiscal policies are not totally banning the use of such tokens, but want some return. Most countries are friendly to cryptocurrency in this or that way. According to the list of the most tax-friendly countries for cryptocurrency, compiled by Law & Trust international law firm, Australia has the best taxation climate for the growth of the industry, followed by Argentina, Belarus, Bulgaria and the UK.

Generally, governments are concerned about the issue of cryptocurrency taxation. Without a proper framework, cryptocurrency might be used for concealing profits and avoiding being taxed, which is good for the shadow economy growth.

The implication of such moves on the cryptocurrency world either be negative or positive. Supportive fiscal policies will see a boom in crypto investment, while stricter rules lead to reduced investments. For instance, Singapores waiver on some cryptocurrency transactions is hoped to attract more interest in the crypto industry. Moreover, the stricter management of transactions by ministry could also help reduce cybercrime involving cryptocurrencies.

Notwithstanding the recent government interventions, cryptocurrencies are here to stay and the growth of digital currencies is inevitable.

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Taxes Revolutionizing the Cryptocurrency Industry, Singapore Sets New Rules - Coin Idol

Since the inception of Bitcoin, volatility has been a part of the cryptocurrency narrative even before exchanges and the current mainstream mentions. Now that traditional markets are showing volatility further exacerbated than anti-fragile cryptocurrency during the coronavirus pandemic, the community is seeing how traditional marketplaces like the New York Stock Exchange handle equity and commodity volatility through circuit breaker implementation.

In cryptocurrency and decentralized finance, liquidation auctions have been the answer for periods of market turbulence. The prominence of the traditional marketplaces triggering the circuit breakers has led some cryptocurrency exchanges to implement similar measures. So as the community debates the needs for mechanisms to protect investors versus decentralization, there are a few options and scenarios to consider.

When speaking on circuit markets and market volatility in a conversation with Cointelegraph, Vadym Kurylovych, the founder of STEX a regulated cryptocurrency exchange based in Estonia said:

Trading derivatives on the offshore exchanges looks similar to playing roulette in Madagascar casino. You knew you'd get busted the minute you joined but the potential payout entices you to take the risk.

While the popularity of derivatives and financial products continues to grow within the cryptocurrency ecosystem, educating investors is an important step that exchanges are now beginning to take. While this does not fully prepare non-sophisticated investors in advance for when strong solutions are developed, crypto is left borrowing protection mechanisms from the traditional space. For clarity, protection mechanisms in cryptocurrency will be broken down into circuit breakers at the exchange level as well as the token level.

Mimicking the traditional market, some cryptocurrency exchanges have implemented protection mechanisms in the form of circuit breakers to safeguard their users, while others are resistant to this level of control citing decentralization or other measures to meet demand during periods of high liquidation. So, should exchanges implement circuit breakers to protect users from plummeting prices?

The New York Stock Exchange implements three circuit breaker thresholds that measure a decrease against the prior days closing price of the S&P 500 Index -- 7% (Level 1), 13% (Level 2), and 20% (Level 3). When the first two levels are reached, a 15-minute suspension of trading occurs. At the level 3 threshold, daily trading ceases. In a conversation with Cointelegraph, Ryan Salame, head of OTC for Alameda Research which manages over $100 million in digital assets and trades $600 million to $1.5 billion per day stated:

[It] seems to me more like a philosophical debate than anything else, but I imagine you get a more stable market with circuit breakers thus a larger audience would be in favor of them. I personally love a 24/7 market with no circuit breakers and 100x leverage with high volatility, but can certainly see the argument against it.

The difference may be in the type of product being offered to the financial community. While Bitcoin is decentralized, other financial products in the cryptocurrency space may need circuit breakers to protect against black swan events just like the traditional market has experienced.

The cryptocurrency market has many large liquidation events to point to, but recently, the now-infamous Black Thursday on BitMex is a great example. The massive sell-off was reportedly triggered by two DDoS attacks causing a flash crash in the Bitcoin (BTC) price. This attack did major damage to investors, and it is being reported that Binance now tops BitMex for Bitcoin Futures. BitMex lacks circuit breakers and therefore benefits financially in times of market volatility. While the financial benefit may have been large for BitMex, the fallout from not protecting users may cost the platform in the long run.

Currently, Binance has not implemented any form of circuit breakers in their exchanges. In a recent interview with Cointelegraph, the exchanges CEO Changpeng Zhao touched upon circuit breakers, but did not give out any indication of future Binance plans for them. He did, however, remark that blockchain is much fairer in solving the fundamental problems of the old system, which means the fiat-based system. This lends credence to Binance upholding its decentralized philosophy and resisting the development and implementation of circuit breakers.

Jake Stott, the founder of blockchain think tank dGen, lent his insight in a conversation with Cointelegraph, saying, With circuit breakers, we start to see a cryptocurrency market that betrays some of the fundamental reasons for it to exist. He went on to add:

Without circuit breakers, we may never see products such as a Bitcoin ETF, due to the huge price variations that could occur between the 24 hour and traditional exchange-traded product. Im personally in favour of the circuit breakers because it appears much of the recent problems were caused by margin traders uncovered shorts and subsequent clogs in the Bitcoin and Ethereum networks. Price crashes were much more extreme for those reasons.

So what will cryptocurrency exchange circuit breakers look like? A circuit breaker introduced by the Huobi exchange may give some insight into how the industrys trends could traverse. The liquidation circuit breakers only allow partial liquidation of orders rather than full liquidation, which previously was the case. The circuit breaker acts differently than traditional market circuit breakers, which are used to curb panic-selling. The Huobi circuit breaker will terminate liquidation orders on positions where the margin ratio is 0% when abnormal price deviation between the market price and liquidation price is identified.

Related: What Is a Circuit Breaker and Why Do Exchanges Need Them?

While there have been calls to ban shorting, such a move could disrupt liquidity, while an approach like the one Huobi developed protects users funds first. While Huobi may be on the right path, Jens Willemen, a partner at Kairon Labs Market Making which provides liquidity to exchanges outlined implementation struggles for circuit breakers, saying that for the smaller tokens, the ones that are just getting listed a circuit breaker would be a good thing, adding that overall:

Circuit breakers do make sense for the larger, more liquid tokens to add in a bit more stability to the markets. In practice we believe this will be very hard to implement in the crypto space. Most tokens are listed on a number of different (unregulated) exchanges, getting all these exchanges to agree on when and how to implement these circuit breakers will be very difficult to say the least.

A similar sentiment was shared by Michael Creadon, a board advisor at Inveniam Capital Advisors a digital financial instruments tool for private capital markets told Cointelegraph that traders would be caught out either with or without circuit breakers in place:

Circuit breakers wont work because there are too many exchanges and no centralized rule-making body. If Coinbase freezes up but the market moves another 50% on Binance, you won't be able to get out. So youre damned if you do, damned if you dont. For long term hodlers, I think this is less important. For day traders, this is very important. Circuit breakers are a good thing, but hard to deploy when there are hundreds, if not thousands, of trading venues.

Understandably, competition and high trade volume is beneficial to exchanges, which lends itself to a future where not all will implement circuit breakers. Exchanges will continue to ensure they make money even if practices may harm investors and prevent wipeouts due to system overloading and attacks.

While exchange circuit breakers take the first step in protecting investors, the shortcomings appear to stem from the difficulty of widespread implementation and consensus on best practice. Additionally, individual tokens have the ability to implement governance circuit breakers and reserves in an effort to protect users.

While discussing the potential of seeing token-level circuit breakers in any upcoming projects and launches with Cointelegraph, Leslie Lei, listing director for Cointiger the first cryptocurrency exchange to introduce an equity mechanism through their native token remarked:

The decentralized goal of the cryptocurrency industry will not be left up to the exchanges alone and a project we are aware of is already implementing circuit breakers like investment downside protection. We see innovative projects developing and launching daily that strive to meet the needs for the whole ecosystem in a decentralized fashion. Most options exchanges implement present major centralization issues with everyone running on different APIs, so the token-level approach may be a preferred solution while keeping users interests first.

While DeFi companies seek an alternative to overarching exchange circuit breakers, the potential solution could also lie in non-correlating reserves. While this is possible and currently being implemented with DAI, Dmitri Laush, CEO of GetID an omnichannel Know Your Customer solution noted to Cointelegraph:

The Crypto industry is still in the Wild West zone in survival mode, with monopoly or duopoly on this market finally we can see those rules, but it will not in the near future. And as altcoins usually reflect BTC and ETH in their drops and raises, the circuit breakers can help traders dealing with altcoins and tokens as well.

The dependence on volatile assets such as Bitcoin and Ether (ETH) places strain on reserves and values of tokens. A recent example is Ethereums crash creating issues for DAI during Black Thursday. MakerDAO remedied the dependence on a volatile Ethereum and implemented another reserve that utilizes USD Coin (USDC), a fiat-pegged stablecoin. Liquidity through demand or reserves is necessary, yet only reserves can be legally controlled.

Eventually, cryptocurrencies may need to add their own circuit breakers to protect the baseline value of assets. For example, during the DAI Auction, a number of users won liquidation auctions for 0 DAI because of a bug. While the Ethereum used to create the DAI was not worth 0, the drop in price caused mass auctions to occur. These failures triggered a $28 million lawsuit against the Maker Foundation.

For this reason, reserves themselves may need to act as a circuit breaker. For example, Gemini Dollar does not see major exchange fluctuations because it is minted and burned at a 1:1 ratio to the fiat currency it tokenizes. Likewise, Bancor-based reserves produce slippage on available funds in a transparent way to disperse liquidations.

The community appears split on whether cryptocurrency and exchanges should implement circuit breakers and is even more divided on whether those circuit breakers should be at the exchange level or token level. However, one piece seemed clear throughout all the opinions and developmental research: Projects that focus on the success of investors and users will come out of this as winners.

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Crypto Industry Divided Over Introducing Circuit Breakers on Exchanges - Cointelegraph

A fan of Ripple and long-time XRP investor is going viral on Reddit after saying hes concerned about the future ofthe third-biggest crypto asset on the market.

His post, entitled Long-term hodler losing confidence, shot to the top of the r/Ripple subreddit. The trader questions the level of XRP adoption among financial institutions and whether Ripples crypto-based payments product, called On Demand Liquidity (ODL), will boost the price of the cryptocurrency.

In particular, he says comments made by Ripples executives, including chief executive officer Brad Garlinghouse, stating that a significant number of banks would utilize XRP, have not yet come to fruition.

Garlinghouse and Schwartz mentioned dozens of banks would be using XRP, Ripple would be working with major household names, but two years have passed and very little has been made public Perhaps the developments continue to happen behind the screens, but so far the use case/ODL have not had any positive impact on price and XRP continues to move along with BTC.

The investor says he first bought XRP back in 2017 and says hes not planning on selling.

The top response to the investors criticisms indicates a more positive trend: rising volume for Ripples XRP-based liquidity product.

Ripple has publicly stated (XRP 2019 Q4 Markets Report) that they will be introducing a new market in Latin American, Asia-Pacific, and Europe in 2020 Crypto holders have been waaaayyyy out in front of their skiis for several years now. Being frank, XRP is the only asset that is delivering on its use case in Production on any scale today.

Ripple raised $200 million in a Series C funding round in December and says it will use the funds to grow its XRP-based remittance platform, boost development on the XRP Ledger, onboard new talent and better serve its customers.

XRP is outperforming traditional markets in 2020. It began the year at $0.1936, shot to $0.3372 during the crypto-wide bull run in February, and then returned to January levels. The digital asset is currently trading at $0.1938 at time of publishing.

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XRP Investor Goes Viral, Says Hes Losing Confidence in Ripple and Third-Largest Cryptocurrency - The Daily Hodl

Tether has replaced XRP, the native token of the San Francisco-based blockchain payment firm Ripple Labs, to become the third-largest cryptocurrency by market capitalization.

Top cryptocurrency tokens by market cap as on April 22 | Source: Messari.io

The dollar-pegged stablecoin, which protects traders from the extreme volatility associated with Bitcoin and similar crypto-assets, saw its reported valuation surpassing $7.5 billion on Wednesday. Meanwhile, the size of the XRP market squeezed under $5.5 billion as its prices fell into negative territory on a year-to-date timeframe.

The rise in Tethers market capitalization followed a voluminous flight to cash in the first quarter of 2020. Data aggregator Messari wrote in a client note that demand for stablecoins, especially USDT, was as high as it was in the entire 2019, indicating that traders anticipate wilder price volatility in the rest of the crypto market.

The sentiment takes cues from the ongoing macroeconomic crisis caused by the Coronavirus pandemic. As equities and commodities crashed to their record lows in mid-March, they also prompted bitcoin and other digital assets to pursue a similar downward trajectory.

The crypto market capitalization on whole fell by circa $60.25 billion in March 2020.

Crypto market cap is recovering following global central banks stimulus programs | Source: TradingView.com

XRP was one of the victims of the March crash, falling 24.32 percent to close the month at circa $0.17. On the other hand, traders appetite for Tether, the topmost stablecoin, surged, making it the top crypto beneficiary of the Coronavirus pandemic.

The largest beneficiary of the March volatility was Tether, said Ryan Watkins, research analyst at Messari. Its fitting that the top 3 crypto assets now feature the top 3 verticals in blockchain technology: Money, DeFi, and Stablecoins.

At the same time, Mr. Watkins anticipated the demand for stablecoins to head higher as the world comes face to face with a US dollar shortage. He said USDT, as well as its competitors, including USDC and BUSD, could quadruple their growth in 2020.

With the announcement of Libra and the growth of stablecoins last year, many consider 2019 as the year of stablecoins, said Ryan Watkins, research analyst at Messari. But if trends from the past quarter persist, 2020 could very well give 2019 a run for its money.

Photo by Maico Amorim on Unsplash

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Tether Surpasses XRP to Become the Third-Largest Cryptocurrency - newsBTC

Leading cryptocurrency tax software firm TaxBit simplifies the process of filing taxes to just a few clicks for cryptocurrency traders. TaxBit offers cryptocurrency holders and investors a slew of robust services including the easy calculation of profits, losses, tax liabilities, and generation of IRS-compliant tax forms, to make crypto trading a pleasant experience for traders.

Filing taxes doesnt particularly rank high in the list of tasks one would ideally want to do. Add to it the element of cryptocurrencies, and the process starts sounding all the more cumbersome. Fortunately, TaxBit is here to relieve crypto traders from this ordeal.

Headquartered in Salt Lake City, Utah, TaxBits is the only cryptocurrency tax software founded developed by industry-leading blockchain CPAs and cryptocurrency tax attorneys. A leader in the cryptocurrency tax software space, TaxBit provides tax solutions for more than 4,200 cryptocurrencies, equities, commodities, and all fiat currencies.

TaxBit reduces the process of filing taxes to just a few clicks. TaxBit enables its users to connect their exchanges via its read-only API keys to the software in less than a minute. This rapid process allows TaxBit to pull the users entire cryptocurrency transaction history and feed the data into its tax engine.

Once the trading data has been fed into the engine, users can then see the real-time tax impact of their digital currency transactions. They can also download their yearly tax reporting forms to facilitate quick tax filing with the tax regulators.

As mentioned earlier, TaxBits innovative user interface has been carefully designed by top blockchain CPAs and cryptocurrency tax attorneys. TaxBits cryptocurrency tax engine holds the capacity to process millions of transactions with the highest accuracy.

Most notably, TaxBit takes immense pride in providing a fully immutable cryptocurrency tax audit trail to its users. This essentially means that during an audit, the users CPA or IRS investigator can narrow-down into any single transaction to determine how exactly their cost-basis and subsequent gains or losses were calculated.

The tax software provides its users with a suite of ready portfolio analytics tools that can help them track the performance of their crypto holdings throughout the year. Thanks to its dynamic tax-reporting mechanism, TaxBit displays users real-time portfolio metrics as and when they trade rather than producing a tax-form at the end of the financial year.

Additionally, TaxBit gives its users the option to calculate individual tax rates both federal and each state for their gains or losses so they can have a fair idea about the estimated total tax liability or refund.

Last but not the least, with TaxBit, users can generate one-click IRS 8949 cryptocurrency tax forms. TaxBit users are only required to connect their exchanges to the software to generate and download the IRS cryptocurrency tax forms in their account. Its Plus and Pro plans allow users to retrospectively amend prior years (up to 2014) tax forms for cryptocurrency transactions.

TaxBit treats user security and privacy with the utmost respect. This shows in its various security mechanisms reviews to date.

As TaxBit only gains access to read-only API keys, the platform, essentially, has access to view a users crypto transactions and not their actual digital assets. Basically, it means that TaxBit has absolutely zero access to view a users crypto portfolio or any data pertaining to their actual crypto holdings.

This privacy-preserving mechanism ensures that in the hypothetical event of a hack, the perpetrators would only be able to view a users transactions and not their total crypto holdings.

Its also worth highlighting that TaxBit stores no user personal information at all including their social security numbers or tax identification numbers.

TaxBit has cemented itself as a pioneer in the cryptocurrency tax filing space. Having partnered with various leading cryptocurrency exchanges, TaxBit enjoys goodwill in the rapidly growing cryptocurrency industry.

Backed by some of the most influential and reputable VC firms in the fintech and crypto space, including the likes of Peter Thiels Valar Ventures and Winklevoss Capital, TaxBit is playing a significant role in shaping the tax facet of the cryptocurrency industry as we know it.

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TaxBit Simplifies Cryptocurrency Taxes with Innovative Reporting and Audit Tools - BTCMANAGER

Cryptocurrency prices are quite susceptible to news, according to a recent paper. While, somewhat unsurprisingly, adverse announcements lead to immediate sharp declines, the establishment of clear regulations tends to mark serious market gains.

The report compiled by the Federal Reserve Bank of Dallas initially questioned the efficiency of instituting actual regulations on cryptocurrencies. It argued that digital assets can function without institutional backing and are intrinsically borderless.

Thus, regulations, more specifically national, could not provide the necessary effect. Yet, upon completion of the study, the report informed that at the current juncture, authorities around the globe do have some scope to make regulation effective.

The paper examined what the consequences in terms of price developments following particular newsworthy announcements on the matter are:

News indicating possible novel legal frameworks tailored to cryptocurrencies and initial coin offerings (ICOs) coincide with strong market gains.

The document specified that the introduction of a non-security legal framework generates even more favorable returns. Most likely as those frameworks generally come with oversight rules that are milder than those under securities law, the paper reasoned.

Bitcoin, used as an example, sees serious gains in a one-day and ten-day period, as the graph above illustrates after news of clear regulations.

Although the cryptocurrency market operates under no formal legal homes and is available for international trading, it still relies on regulated institutions to convert regular currency into cryptocurrency. The papers conclusion estimated this to be the primary reason behind the price developments in light of regulations.

The report, rather expectedly, is quite clear on the matter. The cryptocurrency market marks a rapid adverse reaction on anything even remotely negative.

Besides general bans on [cryptocurrency] usage for financial transactions, news events related to their possible treatment under securities market law have strongly adverse impacts, as do events explicitly signaling that they will not be treated as a currency.

Regulatory news regarding anti-money laundering or combating the financing of terrorism (AML/CFT) measures and limits on the interoperability of cryptocurrencies with the regulated financial system adversely impacts cryptocurrency markets. the paper explained.

For instance, back in 2019, when the Chinese government clarified that digital assets are (still) illegal, Bitcoins price dropped to a 6-month low almost immediately.

However, the document also informed that unspecific general warnings and news regarding central bank digital currency issuance and regulation have no outlining effect.

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Clear Regulations Have A Positive Impact On Cryptocurrency Prices, Federal Reserve Bank of Dallas Reports - CryptoPotato

There is a lot of talking going on about Bitcoin halving. The idea of Bitcoin becoming one of the successful payment systems is here to stay, and there are no signs of it fading away. Bankers are never going to agree to the Bitcoin superiority, and this is why they say dont ask a banker about the Bitcoin (BTC).

@CryptosBatman state: People who think the halving is priced in should take a look at the previous cycles. The halving is not priced in. But dont expect an immediate price increase after the halving. The increase may take some time.

The economy is falling and is in a confused to state due to the pandemic. Bitcoin seems like the only option per enthusiasts.

IVAN on Tech opined that hyperinflation is baked into the design of all fiat. He also stated that the gold and real estate might not protect. Further stated that Bitcoin is the only solution.

Of note, Ivan on Tech is running the biggest blockchain academy educating smart money.

@IvanOnTech recently tweeted about having launched a Monster Privacy Course. The course is all about cryptography and the privacy provided in Bitcoin, Monero, ZCash, Dash, Tari, Dandelion, MimbleWimble, Beam, Verge, Aztec, Incognito and others.

Ivan opined that the school systems are failing and that it is important to learn about the nature, creation, and distribution of the currency early in life. Without learning the basics of Blockchain, he stated that our wealth is being taken away from us without even us noticing.

Sydney Ifergan, the crypto expert, tweeted: Learning about #Bitcoin (BTC), cryptos and blockchain is very important @IvanOnTech is right when he says, when we do not learn these tech we will be losing money without noticing.

Bitcoin is proving itself to be crisis-proof. Bitcoin has been up since January when several other assets were significantly down. Despite all these, people are continuing the idea of Bitcoin being risky and irresponsible.

It is important to adopt a thought pattern that will help understand Bitcoin (BTC). And for those who are thinking if this is the right time to invest in the Bitcoin during the markets going crazy, the ideal answer will be to spend enough time studying the concepts and ideals in the blockchain space and to take a discretionary decision.

Enthusiasts opine that eventually, all roads will lead to Bitcoin.

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Bitcoin (BTC) and Other Cryptocurrency Based Blockchain Privacy and Cryptography Course - The Cryptocurrency Analytics