Bitcoin price stabilises as adoption continues to grow
BTC's value has consolidated around the AUD$51K–$53K range over the last 72 hours, leading many to believe that a trend reversal may be in order.
- El Salvador has continued to push forward with its comprehensive crypto education plan by partnering with major crypto firm Paxful.
- Washington congresswoman Suzan DelBene is looking to rescind an existing law that gives the IRS power to tax crypto transactions as low as US$200.
- Thanks to its ongoing ascent, Bitcoin has been able to wipe out its weekly losses completely.
The last 24 hours have seen Bitcoin, the world's largest cryptocurrency by total market capitalisation, continue to hold ground above the AUD$51,500 threshold. As a result, the flagship crypto is exhibiting daily gains of 1.3% while trading at a price point of AUD$52,380.
The turbulence comes at a time when the US Federal Reserve has continued to hint at the possibility of hiking interest rates come March, sending investors into a frenzy to seek out inflation-protected bonds. Over the coming months, the Fed will also look to slow down its purchase of debt-based assets, leading many pundits to believe that even more volatility may be witnessed across markets such as commodities, stocks, crypto, etc.
Amidst these developments, Paxful – a prominent peer-to-peer (P2P) cryptocurrency service provider – revealed that it had joined hands with the El Salvador government to educate its residents regarding all things crypto (particularly Bitcoin). The central American nation, which legalised BTC last year, has initiated a new program called "La Casa Del Bitcoin" which will provide interested individuals with a host of free learning opportunities.
New law seeks to prevent IRS from taxing sub-$200 crypto transactions
Suzan DelBene, an American senator from Washington, has reintroduced a bill aiming to exempt crypto owners from paying taxes related to crypto payments under the $200 mark. To elaborate, DelBene tabled the Virtual Currency Tax Fairness Act of 2022 on Tuesday in an effort to amend the Internal Revenue Code of 1986.
If successful, she will help eliminate a certain legal requirement that requires US tax filers to pay taxes on capital gains accrued as a result of any crypto transactions worth US$200 or more. On the subject, she was recently quoted as saying:
"Antiquated regulations around virtual currency do not take into account its potential for use in our daily lives, instead treating it more like a stock or ETF. The US must stay on top of these changes and ensure that our tax code evolves with our use of virtual currency."
Capital continues to flow into the crypto market
Earlier this week, Fireblocks, a renowned crypto infrastructure provider, revealed that it had been able to raise another whopping US$550 million as part of its Series C funding round, thus helping the company's total valuation climb up to a sum of US$8 billion.
Similarly, crypto wallet provider Phantom was able to secure a sizeable US$109 million from a number of VCs, bringing the firm's total worth to around the US$1.2 billion mark. In recent months, Phantom has emerged as one of the leading wallet solutions for the Solana ecosystem, with the platform boasting of more than 2 million monthly users.
Disclosure: The author owns a range of cryptocurrencies at the time of writing.