Bitcoin Price Prediction: Hits $40,000 Amid ETF Moves & IRS Update
In a market teeming with activity, Bitcoin’s latest surge to $40,000, marking a nearly 1% increase on Thursday, has investors and analysts revisiting their Bitcoin price predictions. This uptick comes amidst a flurry of significant developments: Chinese investors, spurred by stock market dynamics, are increasingly engaging with Bitcoin despite its prohibited status in the country.
In a parallel development, the IRS has revised the tax form questions concerning digital assets, signaling a shift towards greater regulatory clarity. Further adding to the ecosystem’s transparency, Arkham has revealed the onchain addresses associated with four major Bitcoin ETFs, a move that could potentially reshape investor sentiment and market dynamics.
Chinese Market Trends Drive Bitcoin Engagement
Amidst the nation’s economic recession, more and more Chinese investors are looking to cryptocurrencies, particularly Bitcoin, as a safe haven. Investors are accessing cryptocurrencies through unconventional means and operating in a regulatory gray area as a result of the stock and real estate markets’ downturn. People are trading on sites like OKX and Binance despite China’s prohibition on cryptocurrency trading and stringent money movement regulations.
Taking advantage of Hong Kong’s more welcoming climate for cryptocurrencies, the Hong Kong branches of significant Chinese financial institutions, such as Bank of China and China Asset Management, are investigating ventures linked to cryptocurrencies.
— CNA (@ChannelNewsAsia) January 25, 2024
Due to economic uncertainty, more Chinese investors are turning to digital assets like Bitcoin, seeing its potential in the face of obstacles in the traditional market. This trend could have a favorable effect on Bitcoin prices.
IRS Revises Digital Asset Stance in Tax Forms
All United States taxpayers must record income connected to digital assets on their federal tax return for 2023 as a result of updates and expansions made by the Internal Revenue Service (IRS) to the digital asset question on income tax forms. The updated question, which is now present in four more tax forms, focuses on transactions that incorporate digital assets like stablecoins, cryptocurrencies, and non-fungible tokens (NFTs).
The extension of the digital asset inquiry to many tax forms—such as corporations, partnerships, estates, and trusts—highlights the IRS’s increased emphasis on cryptocurrency tax compliance.
The IRS has issued a reminder that taxpayers must answer a digital asset question on 2023 tax returns, as well as report all digital asset related income when they file their 2023 federal income tax return. https://t.co/V5XJa4pWdp
— Forbes (@Forbes) January 24, 2024
Even while the news mostly affects taxpayers’ reporting requirements, greater oversight and regulatory actions in the cryptocurrency industry could have an impact on investor mood, market dynamics, and cryptocurrency prices.
Arkham Boosts Transparency with Bitcoin ETF Onchain Data
Four spot Bitcoin exchange-traded funds (ETFs) connected to financial firms Blackrock, Fidelity, Bitwise, and Franklin Templeton have been discovered by Arkham Intelligence. With a focus on blockchain intelligence, the company has now recognized half of the ETFs available in the US market.
The ETFs that have been identified are the Bitwise BITB fund, the Franklin Templeton EZBC ETF, the Blackrock IBIT ETF, and Fidelity’s Wise Origin spot Bitcoin ETF (FBTC). The disclosure improves market openness by offering lucid insights into fund holdings and activities.
Breaking: ETF addresses for Blackrock, Fidelity, Bitwise, and Franklin Templeton are now on Arkham.
Arkham has identified the on-chain location of four of the Bitcoin ETFs. We are the first to publicly identify these addresses.
Links and holdings breakdown below: pic.twitter.com/gFJAIklwtc
— Arkham (@ArkhamIntel) January 22, 2024
A more transparent bitcoin market is essential to fostering investor confidence and drawing knowledgeable participation. Even though the news mainly affects ETF transparency, it also benefits the integrity of the market as a whole and could have an impact on investor mood and Bitcoin prices.
Bitcoin Price Prediction
Top 15 Cryptocurrencies to Watch in 2023
Stay up-to-date with the world of digital assets by exploring our handpicked collection of the best 15 alternative cryptocurrencies and ICO projects to keep an eye on in 2023. Our list has been curated by professionals from Industry Talk and Cryptonews, ensuring expert advice and critical insights for your cryptocurrency investments.
Take advantage of this opportunity to discover the potential of these digital assets and keep yourself informed.
Disclaimer: Cryptocurrency projects endorsed in this article are not the financial advice of the publishing author or publication – cryptocurrencies are highly volatile investments with considerable risk, always do your own research.
The post Bitcoin Price Prediction: Hits $40,000 Amid ETF Moves & IRS Update appeared first on Cryptonews.