- December 27, 2023
- Posted by: [email protected]
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In a remarkable turn of events, Bitcoin has surged to an impressive $43,499, marking a 0.71 percent increase on Tuesday. This notable upswing can be predominantly attributed to the growing interest in Spot Bitcoin ETFs, which are on track to surpass the combined inflows of all 150 crypto ETPs currently present in the market.
A historic proposal by Japan’s Cabinet to eliminate corporate taxes on unrealized cryptocurrency gains is adding to the bullish momentum. This move could have far-reaching implications for the global cryptocurrency landscape.
Simultaneously, in the United States, a representative has drawn attention to a series of crypto bills approved by the House Committee this year, signaling an increasing legislative interest in the crypto sector. Together, these developments underscore a pivotal moment for Bitcoin and the broader cryptocurrency market.
The cryptocurrency investment landscape is undergoing a drastic shift, with 150 crypto exchange-traded products (ETPs) amassing an impressive $50.3 billion in assets under management. Notably, Grayscale’s Bitcoin Trust, the largest player in the ETP arena, is ambitiously striving to transform into a spot ETF.
The potential for spot Bitcoin ETFs to gain traction in the United States paints a promising picture, with expectations of surpassing the entire $50 billion crypto ETP market. Analysts are making bullish forecasts, projecting a growth trajectory ranging from a robust $2.4 billion to an astounding $72 billion in assets under management over the next five years.
This potential game-changer in Bitcoin prices is further fueled by the increasing involvement of institutional entities in the cryptocurrency market.
In a landmark move, Japan’s Cabinet, led by Prime Minister Fumio Kishida, has proposed legislation exempting corporation tax on unrealized gains from cryptocurrencies. This progressive step aims to catalyze the growth of the nation’s burgeoning Web3 industry, rectifying a discrepancy in the tax treatment of third-party-issued assets compared to those held by individuals.
If enacted, this reform could level the playing field, potentially fostering the growth of Web3 enterprises within Japan by lowering fiscal barriers. The proactive stance of the Japanese government signals a conducive regulatory environment, potentially influencing Bitcoin prices positively in a significant global market.
US Congressman Tom Emmer highlights major achievements in crypto legislation for 2023, emphasizing progress made by the House Financial Services Committee. Legislative milestones include acts to lower barriers in the digital asset sector, clarify token classification, and prevent SEC enforcement using taxpayer funds until explicit jurisdiction is granted.
These legislative developments, combined with the November appropriations amendment limiting the SEC’s enforcement reach, are poised to positively impact Bitcoin’s pricing by enhancing transparency and fostering industry growth.
In today’s technical analysis of Bitcoin (BTC/USD) for December 26, the cryptocurrency is trading at $42,936, marking a 1.79% decline. Bitcoin’s movements, crucial indicators for the broader crypto market, reveal immediate resistance levels at $44,393, $45,045, and $45,975, with support at $42,772, $41,801, and $40,638.
The Relative Strength Index (RSI) at 40 suggests bearish sentiment, and the Moving Average Convergence Divergence (MACD) indicates potential downward momentum. The 50-Day Exponential Moving Average (EMA) at $43,238, with Bitcoin’s current price below it, suggests a short-term bearish trend.
Chart patterns further indicate a bearish bias below $43,238, urging traders to approach with caution and closely monitor key resistance and support levels in the coming days.
