Daily Crypto Signals: Tax Clarity and Price Volatility Mark Year-End Trading
The crypto market faces increased regulatory scrutiny and price volatility as Bitcoin trades below $95,000 while altcoins show mixed performance amid holiday trading conditions.
Latest Developments in the Crypto Market
Maintaining that rewards should be taxed at receipt rather than at sale, the IRS has adopted a strong position on crypto staking taxation. Their reply to a second lawsuit contesting its tax treatment reveals this clarity. Botswana’s central bank, meantime, supports legislative frameworks while classifying bitcoin as a low-risk investment. Regarding political events, Donald Trump has named former college football player Bo Hines to head his suggested Presidential Council of Advisers for Digital Assets.
Bitcoin Under $95,000
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With a 1.2% daily drop, Bitcoin BTC/USD is under negative pressure and trades at $94,264. Technical analysts advise prospective support levels between $85,000 and $86,000; other traders believe the $90,000 level will be retested. Though institutional demand is still strong with MicroStrategy acquiring 5,262 Bitcoin from December 16-22 at an average price of $106,662, the bitcoin has witnessed a 15% fall from its previous all-time highs.
XRP Testing $1.98 Support?
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XRP XRP/USD has moved into a correcting phase following $2.90, its highest level since January 2018. Technical study indicates a possible 15–20% down to $1.98 support level from the $2.24 trade price now. Declining whale numbers and the development of a declining triangle pattern help to justify the bearish view. Long-term prospects are still bright, though, with prospective XRP ETF developments and the SEC vs. Ripple litigation outcome acting as potential trigger.
Top Altcoins to Keep An Eye On
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There is notable price activity displayed by several main altcoins:
- Solana (SOL) is testing crucial support at its uptrend line, trading at $189.04
- BNB faces resistance at $688.66 with key support at $635
- Cardano (ADA) shows bearish signals after breaking below key support at $0.91
- Avalanche (AVAX) trades below its 50-day moving average at $38.38
Macroeconomic events still affect the market, especially the Federal Reserve’s hawkish attitude on interest rates, with low prospects of rate reductions in early 2024.
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