Rooting Out Bad Projects In The Crypto Market
When it comes to old cryptocurrencies. Bitcoin itself has proved on numerous occasions that it is resilient enough to survive even the harshest conditions. It has already been through numerous surges and crashes, not to mention events such as Mt. Gox hack. In the long term, Bitcoin will likely continue to rise, and after the market gets cleared of weak projects and scams, it will become more robust.
In other words, bad projects will likely run out of money and be forced to shut down due to their coins being worthless, while the crypto itself will survive for long enough to see prosperous times once more. The process can only be completed through weakening the market, which is the situation that is happening right now.
After the correction, a few killer startups are expected to emerge, and these will likely be the one that will lead crypto towards real mass adoption. As a direct result of bringing more crypto users and investors to the market, the value will grow, and surviving coins will likely reach new all-time highs. The token adoption will likely start through a video game sensation, perhaps a crypto-equivalent to Angry Birds. Other projects that will start implementing crypto in new, imaginative ways will appear as well, and the process will continue.
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Tax Treatment Lifts Volatility
According to the Internal Revenue Service , Bitcoin is actually considered an asset for tax purposes. This has had a mixed impact on Bitcoin’s volatility. On the upside, any statement recognizing the currency has a positive effect on the market valuation of the currency.
Conversely, the decision by the IRS to call it property has had at least two negative effects. The first was the added complexity for users who want to use it as a form of payment. Under the new tax law, users would have to record the of the currency at the time of every transaction, no matter how small. This need for record-keeping can understandably slow adoption because it seems to be too much trouble for what it is worth for many users.
Secondly, the decision to call the currency a form of property for tax purposes may be a signal to some market participants that the IRS is preparing to enforce stronger regulations later. Very strong regulation of the currency could cause the adoption rate of the currency to slow to the point at which it is not able to achieve the mass adoption that is critical for its overall utility in society. Recent moves by the IRS are not clear about their signaling motives and have therefore been giving the Bitcoin market mixed signals.
What Is The Price Of Bitcoin And Ethereum
The price of Bitcoin was £41,531.60 after the latest drop in prices , according to Coinbase.
In the last 24 hours, Ethereum had dropped to a value of £2,568.99.
Cryptocurrencies are seen as an alternative to traditional banking methods, cheaper to move money around due to not being regulated by the government or its banks.
The decision by Tesla, and announced by Musk, was seen by some as a slight on the credibility of cryptos to become a viable method of payment against physical currencies.
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Why Are Cryptos Falling
After topping $64,000 in April, bitcoin has struggled to reclaim its all-time highs since then following a series of events. It came under pressure in May after tech billionaire Elon Musk, who has driven traders into frenzies by mentioning cryptos at times, said Tesla will stop using Bitcoin as a form of payment over concerns of the cryptocurrency’s impact on fossil fuels.
Since then, cryptos have gyrated as coins such as ethereum typically to move in tandem with bitcoin.
In early June, bitcoin fell further amid concerns of its use in the Colonial Pipeline ransomware attack.
Bitcoin, for instance, briefly touched $40,000 last week and fell again Monday after China’s central bank deepened a crackdown on cryptocurrencies. China’s central bank said it ordered some banks and payment firms, including China Construction Bank and Alipay, to crack down further on cryptocurrency trading.
Bitcoin shed more than 10% on Monday, its largest one-day drop in over a month.
The I Newsletter Cut Through The Noise
Bitcoin and other leading crypto coins experienced a significant drop in share price after investors began dumping mining equipment as China announced fresh regulations.
- Bitcoin -1.21%
- Binance Coin +3.17%
- Cardano -3.82%
- Terra -5.98%
- SHIBA INU -12.24%
It follows recent crashes brought on by Tesla making a u-turn on accepting Bitcoin as payment for its products and China clamping down on initial coin offerings, block exchanges and warned against speculative trading.
A further blow was dealt when China ordered Bitcoin mining in its Sichuan province to shut down completely and furthermore told banks to stop supporting crypto transactions, in a latest wave of restrictions on cryptos.
Now the countrys central bank, Peoples Bank of China, has effectively banned digital coins after announcing all transactions of cryptocurrencies are illegal.
The decision has already had an impact on the global crypto market.
This is whats going on in the world of cryptocurrencies…
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Biden Wants To Tax Cryptos
The president of the US Joe Biden has been making significant changes to many laws. Since Biden is a democrat, his plans will consist of implementing higher taxes in order to enhance the countrys budget. This higher tax not only applies to big businesses, corporations, and wealthy individuals, but also to Crypto Holders!
Biden stated today on the 23rd of April 2021, that he is planning to tax nearly 40% individuals who are earning more than USD 1 million. Crypto whales usually affect heavily the crypto market, and many saw this speech as a threat to their capital gains. They most likely decided to liquidate earrings made to avoid paying capital taxes later when taxes are implemented. There are many crypto millionaires who sought refuge in this tax haven, but apparently, not anymore.
You might be asking, do ALL whales plan to do so at the very same moment? The answer is an obvious no, but a snowball effect usually happens in such circumstances. This comes especially after profit-taking occurred since last week. So this down market is an extension of profit-taking.
Expectation Of New Historical Highs Will Bitcoin Go Up
In general, experts believe that bitcoin volatility will be high in the near future, but will decline every day. That is, the amplitude of price movement will decrease. At the same time, it is still important for crypto investors to monitor the dynamics of American indices. As long as indices and stocks are rising, cryptocurrencies will be less interesting to investors.
Institutions are just getting ready for the resumption of trading activity. And at the stage when the correction of the US stock market begins, one can expect that capital will flow into the crypto market since the rate of its growth will significantly exceed the rate of growth of stocks and indices. Investors will go for more profit
Apparently, the current situation of uncertainty will continue on the crypto market in the next month. Experts believe that Bitcoin is likely to continue hovering around $45,000 per coin.
Nevertheless, even $30,000 per bitcoin is three to four times more than the average in 2020.
At the same time, experts regard a drop below $30,000 as unlikely, but possible. If this happens, the rate will quickly bounce back due to buying orders placed by institutional investors who expect to increase their investments in Bitcoin during correction periods.
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What Makes Crypto Go Up And Down
For those who have been following the cryptocurrency market for some time, the situation and events of recent months will seem familiar.
Some random event, for example, Elon Musks tweet that Tesla will accept bitcoins, raises the price of the currency to new heights, and people begin to say that the general public is finally accepting cryptocurrency.
Then another random event occurs, for example, Musk changes his mind, after which the rate of cryptocurrencies falls again, and all conversations about general acceptance are forgotten.
Finding Value In Cryptocurrency
If you understand the core principle of supply and demand behind what gives cryptocurrency value and the factors influencing them, you can make better cryptocurrency investment decisions. If you believe demand is going to increase for reasons X, Y, and Z and don’t think supply will keep up, that cryptocurrency could be a good investment. But be aware that governments still don’t have best practices for regulating cryptocurrency, which makes it a particularly risky and volatile investment no matter what.
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Crypto Market Smashes Record High
Its been a massive 24 hours for the cryptocurrency market, with several other leading altcoins looking to follow bitcoins all-time high with a record-breaking price run of their own.
Ethereum is now less than $100 from its ATH, while Solana is also fast approaching its own with gains of more than 20 per cent since this time yesterday.
All of the action has pushed the overall crypto market above its previous record, breaking above $2.6 trillion for the first time in its history this morning.
The Crypto Market Today
Despite the recent 2021 crypto market crash, cryptocurrencies are already bouncing back, something that is clearly shown by Bitcoins value of nearly $44,000 today . Confidence in cryptocurrency is still strong. Since the May crash, Mastercard has launched a cryptocurrency and blockchain program for start-ups and El Salvador has accepted cryptocurrency as legal tender. Additionally, decentralized finance continues to make great gains, while Ethereum progresses with its update to Ethereum 2.0, aiming to cut emissions by 90%.
There are still some bumps, as some countries such as France and Albania, push for further regulation. However, there is no fear of centralization, and arguably this regulation will further help legitimize crypto. Thus, it would seem that despite Mays crypto market crash, confidence remains high and opportunities remain on the horizon. Nothing proves this more than the huge jump in users that cryptocurrency has seen: from 143 million at the end of April to 221 million as of June.
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Which Crypto Prices Are Down
Bitcoin wasnt the only cryptocurrency to feel the initial effects, with the rest of the top 10 all experiencing dips in value.
Dogecoin, which was initially set up as a joke in 2012 before seeing its shares skyrocket, has faced the worst of it with significant double digit drops due to Chinas crackdown.
Musks influence cannot be underestimated as, even though the likes of PayPal, Mastercard and have backed cryptos, the Tesla announcement still rocked the market.
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Why Is Cryptocurrency Market Cap Going Down
Why is every cryptocurrency going down? When investors begin to buy cryptocurrency more actively during rapid growth, the growth in its value continues to gain momentum and at such a moment becomes so high that it becomes difficult for new investors to buy cryptocurrency with the same intensity as before but at a significantly increased price. At the same time, more and more sellers appear on the market who are interested in selling cryptocurrencies at a relatively high price. Consequently, supply increases, while demand decreases, which ultimately gives an impetus to the correction of the market to eliminate this imbalance. Also, its no secret that the actions of large players can have a significant impact on the rate of cryptocurrencies, which, in fact, happens from time to time.
Why is cryptocurrency going down right now? It is well known that rumors can lead to consequences that may be more significant than the consequences of the event itself. This is especially true for the open market for virtual money. Built on the principles of supply and demand, crypto depends on a positive news background, which to some extent encourages users to buy or invest. At the beginning of the article, it was said that crypto investors have not heard good news since 2018. Why cryptocurrency is going down now?
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Btc Eth Ada Xrp: Why Is The Crypto Market Down Today
Here’s what’s going on in the crypto market today
Today, risk assets are broadly down, as investors appear willing to take a breather from the hyper-bull market weve seen of late. Investors may also note that cryptocurrencies are taking a hit today as well. With the crypto market down, many speculators are feeling the effects of what looks like an economy returning to normal.
Among the factors at play today are rising U.S. treasury yields. The 10-year U.S. Treasury bond yield just passed 1.5% today for the first time in three months. Additionally, the two-year yield is sitting at an 18-month high of 0.28% at the time of writing.
While these rates are still historically low, rising bond yields suggest investors are likely to take a pause from risk assets, which are reliant on record-low interest rates for their heightened valuations. Given the fact that the crypto market is among the riskiest and most volatile markets out there, investors looking down on risk assets are taking a look at their exposure to crypto today.
That said, there are a couple other factors that appear to be driving the crypto market today. Lets dive in.
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Customer Support Is Downright Rude And Basically With Screenshot Offered No Assistance
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Everything Doesnt Always Go Up
Despite what those who have recently invested in crypto have witnessed over the last six months, Isaac Newtons law of gravity still applies. Joe DiMaggios hitting streak stopped at 56. Bettors, more often than not, lose it all on the last leg of a parlay. Making money isnt easy, even though crypto certainly made it seem that way.
In another Twitter poll that I took last week, those who voted said crypto was easier to win at than other popular ways to make money.
Of these, which do you feel is the easiest way to make money today?
Darren Rovell May 14, 2021
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