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Spot Bitcoin ETFs and Japan Tax Reforms Drive Bitcoin to $43,500

Bitcoin soared to $43,499, marking a 0.71% rise driven by an upsurge in Spot Bitcoin ETFs and Japan’s proposed tax reforms on unrealized cryptocurrency gains.

Spot Bitcoin ETFs Set to Outperform Crypto ETPs

Spot Bitcoin ETFs are emerging as a major force, aiming to outshine the collective inflows of 150 existing crypto Exchange-Traded Products (ETPs), valued at $50.3 billion. These ETFs, particularly Grayscale’s Bitcoin Trust, aim to transition into spot ETFs, promising substantial growth that could surpass the entire crypto ETP market.

Experts project a bullish trajectory for these ETFs, with forecasts ranging from $2.4 billion to an impressive $72 billion in assets under management over the next five years. This shift, backed by institutional interest, could significantly impact Bitcoin prices.

Japan’s Revolutionary Tax Reforms

Japan’s Cabinet proposed groundbreaking tax reforms, seeking to eliminate corporate tax on unrealized gains from cryptocurrencies. This move aims to propel Japan’s Web3 industry growth by exempting corporations from taxes on the market and book value differences of externally issued crypto assets.

The legislation rectifies tax treatment discrepancies between third-party issued assets and those held by individuals. If enacted, this reform could attract new ventures to Japan, fostering a conducive environment for Web3 enterprises and positively influencing Bitcoin’s market dynamics.

US Crypto Legislation Progress

Congressman Tom Emmer highlighted substantial advancements in crypto legislation by the House Financial Services Committee. The committee’s focus on innovation includes provisions preventing the SEC from using taxpayer funds for crypto enforcement without explicit jurisdiction from Congress.

Key legislative milestones, such as the Blockchain Regulatory Certainty Act and the Securities Clarity Act, aim to foster transparency and industry growth, potentially impacting Bitcoin’s pricing positively.

Bitcoin’s Market Analysis

Bitcoin (BTC/USD) is currently trading at $42,936, indicating a 1.79% decline. The cryptocurrency’s pivotal point is at $43,501, with resistance levels at $44,393, $45,045, and $45,975. Immediate support lies 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) points to potential downward momentum. Bitcoin’s price below the 50-Day Exponential Moving Average (EMA) of $43,238 signifies a short-term bearish trend.

BTC’s movement below the 50 EMA line indicates a potential dominance of bearish bias. Traders should monitor key support and resistance levels, anticipating potential testing of lower support in the upcoming days, urging a cautious trading approach.

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