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Bitcoin Futures Reaches $50,000, Will Bitcoin Break Through $60K?

After undergoing a correction yesterday, Bitcoin’s price surged to $50K on major crypto exchanges like Binance, Huobi and Bitfinex.

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After undergoing a correction yesterday, Bitcoin’s price surged to $50K on major crypto exchanges like Binance, Huobi and Bitfinex. Bitcoin futures has already reached the 50K mark as Bitcoin gains increased interest following Tesla’s $1.5 billion endorsement. Currently, the Bitcoin market cap has reached $920 billion and may soon exceed $1 trillion.

According to Cryptoquant CEO, Bitcoin’s ascent to $50K is a war between Coinbase whales, who trade Bitcoin mainly with USD, and stablecoin whales, who trade with USDT. While Binance has been pushing Bitcoin’s price up, Coinbase Premium is not doing the same. As institutional investors typically use Coinbase, this reflects that they are not quite confident in Bitcoin’s price movement above 50K. At the time of writing, Bitcoin has pulled back from its all-time high of $50K, trading at $48,964.39.

What you should know about Bitcoin

1. One of the biggest events pushing Bitcoin’s price higher is Elon Musk’s support of the cryptocurrency. His electric automaker giant Tesla has recently publicly disclosed it has bought $1.5 billion in Bitcoin. This has ignited the craze for Bitcoin among investors and may inspire more public companies and institutions to buy Bitcoin. Elon Musk also advocates for Dogecoin, and the mere mention of the cryptocurrency has served to send the altcoin soaring to new heights.

Source: BTC/USD and DOGE/USD via TradingView 

2. PayPal(PYPL), a major electronic payment company, announced that it will launch a new service that will enable users to buy, hold, and sell cryptocurrency directly from PayPal’s account following Square(SQ) Bitcoin purchase. On Feb 10, 2021, Mastercard announced that it will begin supporting certain cryptocurrencies on its payments network at some point later this year, which will undoubtedly represent a major milestone for Bitcoin. 

3. According to the Glassnode report, long-term Bitcoin holders are taking profits while miners have reduced their selling pressure this week. 

4. New addresses keep emerging, signaling the rising interest in Bitcoin – The number of new addresses have risen to hit 535,064k on February 15,2021. As for Bitcoin active addresses, they have risen up to 888,793k today.

The increase in new BTC addresses shows that people around the world are increasingly turning to Bitcoin during the current major crypto bull run.

Source: Glassnode

Bitcoin Active Addresses historical chart

Source: BitInfoCharts  

Source:Bybt 

5. Derivatives market showing a bull market

Meanwhile, derivatives markets experienced a significant increase with interest across futures exploding to a record high of $17.29 Billion.

Source:Bybt 

Source: Bybt 

Total short liquidations are around $100.28M compared to total long liquidation of $124.82M, indicating that investors are optimistic about the future market outlook and the BTC long-short ratio is 0.98 less than 1.0.

Bitcoin Price Analysis

At the time of writing, BTC/USD is currently trading at $49,154.04, a slight pullback from its surge to touch $50,000. Our analysis shows that if today’s closing price can break through the resistance of around $49,700, Bitcoin will undergo a rapid rise. It may experience a brief squeeze, which may quickly push its price to $60,000.

If the price is rejected again near $50,000, it indicates that the shorts are actively defending this resistance, which may cause short-term investors to sell and make profits, causing the price to fall to $44,000 and then to the 20-day exponential moving average Line (around $42,684).

Source: BTC/USD TradingView 

From the daily candlestick chart of Bitcoin, we can see that the current Bitcoin price is in a triangular consolidation area and is gradually narrowing. In the short term, it may break through the entire triangle area and continue to rise in the upward channel. Bitcoin rose sharply on February 8 and reached a high of approximately $48K. A doji candlestick pattern was formed on February 9, which indicated that the bulls and bears had not yet decided on the next trend. A bearish candlestick was formed on February 10, indicating that the short-term future trend has been determined, as this hesitant attitude of buyers and sellers gradually disappeared, forming a correction wave A (point A), as shown in the figure.

According to the Elliott wave principle, as shown on the chart, when the upper channel line is touched, the fifth wave high point 5 is formed. During the period from February 9 to February 13, the adjustment of the three waves will be completed (wave A; B; C). Then, BTC/USD tried to breakout a high of $50,000 on February 14th, hitting a new high of 49,692 dollars.

Source: BTC/USD TradingView 

According to the 4-hour Bitcoin price trend change chart, after finishing the three-wave callback correction, we can see that the support line drawn before the downward decline of Bitcoin was $43,842.09, which received strong and effective support. At the same time, it can be seen that the BTC/USD trading pair encountered a strong resistance when trying to break through the pressure line of the triangle area, which approached the $50,000 mark and hit a record high of $49,692.

However, BTC/USD did not stand firmly above the pressure level of the triangle consolidation area around approximately $49,700.

It proves that the current buying power is still relatively insufficient, but from the chart, it can be observed that the triangle interval is narrowing, which indicates that the triangular consolidation will end in the short-term and may form an upward breakthrough trend.

If the bulls can push the price to $50,000 or higher and steadily break through the triangular consolidation range, then narrow fluctuations will form a new upward trend, which will rise towards an upward trend channel pressure line. The next target price for Bitcoin will be approximately US$60,000.

Image source: Shutterstock

1. One of the biggest events pushing Bitcoin’s price higher is Elon Musk’s support of the cryptocurrency. His electric automaker giant Tesla has recently publicly disclosed it has bought $1.5 billion in Bitcoin. This has ignited the craze for Bitcoin among investors and may inspire more public companies and institutions to buy Bitcoin. Elon Musk also advocates for Dogecoin, and the mere mention of the cryptocurrency has served to send the altcoin soaring to new heights.

Source: https://blockchain.news/analysis/bitcoin-futures-surges-50-000-will-bitcoin-break-through-60k

bitcoin-futures-reaches-$50,000,-will-bitcoin-break-through-$60k?

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Grayscale Plans to Offer More Digital Asset Products to Meet Rising Investor Demand

Grayscale Investments LLC has announced plans to explore other digital assets.

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Grayscale Investments LLC, the world’s largest digital currency asset manager, has announced that it is considering several new digital assets for potential new products. In this way, the New York-based company continues seeking ways to better meet the rising investor demand for exposure to digital assets through regulated, secure, and familiar investment products.

The company is currently considering the following digital assets: Aave (AAVE), Basic Attention Token (BAT), Cardano (ADA), Chainlink (LINK), Compound (COMP), Cosmos (ATOM), Decentraland (MANA), EOS (EOS), Filecoin (FIL), Flow (Dapper Labs) (FLOW), Livepeer (LPT), MakerDao (MKR), Monero (XMR), Numeraire (NMR), Polkadot (DOT), Reserve Rights (RSR), Stacks (STX), Sushiswap (SUSHI), Synthetix (SNX), Tezos (XTZ), The Graph (GRT), Uniswap (UNI), and Yearn Finance (YFI).

Grayscale CEO, Michael Sonnenshein, said: “We may not turn each of these assets into one of our landmark investment products. But as a firm that has been on the vanguard of connecting the legacy financial system with the new, digital currency-driven financial system, we view it as our responsibility to introduce investors to more diversity in this space.”

The process of establishing an investment product structured similarly to those that the company already provides a significant consideration and review, and is subject to enormous internal controls, regulatory considerations, and adequately secure custody arrangements. Therefore, there is no guarantee that the assets mentioned above list would get a corresponding investment product. The firm said that any newly-created products will be announced separately upon launch.

Grayscale currently offers eight single asset investment trusts including (Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN), Litecoin (LTC), Stellar Lumens (XLM), and Zcash (ZEC). The firm also provides one diversified fund (Grayscale Digital Large Cap Fund) that offers exposures to top cryptocurrencies by market capitalization.

Emergence of New Competitors

Grayscale’s trusts help investors gain exposure to digital assets through a more traditional investment vehicle by purchasing its publicly listed shares.

However, this year has witnessed the launch of multiple competing products. For example, Bitcoin Exchange-Traded Funds (ETFs) are gaining traction as new competitors for Grayscale are emerging. Last month, Osprey Funds LLC launched an over-the-counter (OTC) Bitcoin Trust similar to Grayscale’s Bitcoin Trust (GBTC). Besides that, ETFs seems to be taking off in Canada. During this month, the Ontario Securities Commission, Canada’s securities regulator, approved the launch of Purpose Bitcoin ETF by Purpose Investment Inc Toronto-based asset management firm. Evolve Funds Group Inc. also launched its Bitcoin ETF that started trading on the Toronto Stock Exchange.

The rising competition has impacted Grayscale’s business. Specifically, competition may erode the demand for the Grayscale Bitcoin Trust (GBTC) product, which could result in a collapsing premium or even a discount. GBTC currently holds more than 655,750 Bitcoins worth of $31.6 billion. However, this week the $31.6 billion has dropped by 21% as investors have rushed to sell off their holdings.

Image source: Shutterstock

Source: https://blockchain.news/news/grayscale-plans-offer-more-digital-asset-products-meet-rising-investor-demand

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Venture Capital Company Benchmark to Pump $50 Million into Ethereum-Based Fantasy Football Platform Sorare

Benchmark, a venture capital company that earlier backed Ebay Inc., Twitter Inc., and Uber Technologies, plans to invest a whopping $50 million into Ethereum-powered fantasy football platform Sorar

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Benchmark, a venture capital company that earlier backed Ebay Inc., Twitter Inc., and Uber Technologies, plans to invest a whopping $50 million into Ethereum-powered fantasy football platform Sorare.

Sorare’s sales skyrocket by 130 times

Sorare is a fantasy soccer video game founded on the Ethereum blockchain that enables users to build their preferred teams and trade football player cards.

These cards are limited and can be transferred as unique non-fungible tokens (NFTs). Moreover, the cards earn points on the foundation of every player’s respective real-world weekly performance.

One of Sorare’s primary goals is to boost blockchain and digital asset adoption in daily life. This has been paid off because its sales have increased exponentially by 130 times from $50,000 in January 2020 to nearly $6.5 million this month.

Benchmark, together with other investors like Reddit and Accel, intends to invest a total of $60 million into the platform as its popularity continues to grow.

Sorare hosts at least 4 billion football fans

Sorare is proving to be a force to be reckoned with in the NFT and fantasy football space because it is used by at least 4 billion football enthusiasts globally.

Nicolas Julia, Sorare CEO, noted:

“Human beings have been collecting for centuries; it’s something we do. This is a product that could bring the crypto asset class to millions of people.”

Furthermore, the platform hosts top-ranked soccer clubs like Juventus. In November last year, reigning UEFA Champions League Winners FC Bayern Munich joined Sorare, giving its fans the chance to trade digital cards based on its top players like Robert Lewandowski, Thomas Muller, and Manuel Neuer.

As more investments continue trickling into the Ethereum-based fantasy football platform, there is an enormous market to tap. NFTs are unique tokens compared to cryptocurrencies like Bitcoin because they are created in small batches to represent a digitally scarce item like football player cards.

Image source: Shutterstock

Source: https://blockchain.news/news/venture-capital-company-benchmark-pump-50-million-ethereum-based-fantasy-football-platform-sorare

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South Korean Investors Making more than $2,260 from Crypto to be Slapped with a 20% Tax in 2022

The South Korean Ministry of Economy and Finance has announced that investors making at least 2.5 million won, or approximately US$2,260 from crypto trading, will be subjected to a 20% tax from 202

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The South Korean Ministry of Economy and Finance has announced that investors making at least 2.5 million won, or approximately US$2,260 from crypto trading, will be subjected to a 20% tax starting in 2022.

The revision of the South Korean tax code

This revelation comes following the nation’s annual tax code revision, which the National Assembly permitted in December.

According to the announcement:

“The first 2.5 million won is tax-free. For instance, if an investor makes a 10 million won profit from trading Bitcoin, 7.5 million won of that amount will be subject to the 20 percent tax.”

The report further pointed out:

“Inheritances and gifts of cryptocurrency will also be taxed. In such cases, the price of the asset will be calculated on the basis of the daily average price for one month before and one month after the date of the inheritance or gift.”

Cryptocurrency taxation has been a burning issue in South Korea since the crypto taxation bill was brought up in the nation’s parliament last year.

For instance, an influential representative of South Korea’s Democratic Party, Yang Kyung Sook, proposed an amendment to re-classify digital assets and cryptocurrency as “commodities” instead of “currency.”

Yang asserted that classifying crypto as goods rather than currency is due to investor behaviour, which he believes qualifies digital assets for a capital gains tax.

The delicate balancing act in crypto taxation

Cryptocurrency investors have been finding themselves in a difficult position because of the heavier taxes imposed on their gains, as compared with stock investment. A police officer surnamed Choi noted:

“I think it’s unfair to charge that much (cryptocurrency) tax when compared to taxes on stocks.”

Therefore, the South Korean government has been struggling to figure out how to deal with crypto taxation because the standard it intends to use is for other non-stock assets like real estate.

Image source: Shutterstock

According to the announcement:

Source: https://blockchain.news/news/south-korean-investors-making-more-than-2-260-crypto-gains-slapped-20-tax-2022

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