Bitcoin fundamentals remain solid suggesting a potential bull run in the near term

Posted: 22 April 2022 11:39 pm

If Bitcoin can muster investor support around the AUD$58,500 range, the currency could potentially scale beyond AUD$68,000.

  • The island nation of Bahamas may allow its residents to start paying taxes using various digital currencies by the end of the year.
  • Bitcoin's total capitalisation currently stands at AUD$1.05 trillion, representing a crypto market share of over 39%.
  • Bitcoin's correlation with the stock market remains high, leading many analysts to believe that more volatility may be incoming.

The last 24 hours have seen Bitcoin exhibit moments of bullish momentum, taking the digital asset close to the AUD$58,500 (US$43,000) mark before sliding once again, plunging below the all-important AUD$54,500 (US$40,000) psychological barrier. BTC's monthly losses now stand at -4.4% with the cryptocurrency trading at AUD$55,231.

In terms of where Bitcoin may be headed in the near term, analysts believe that the currency is exhibiting extremely strong fundamentals and if it can surge past AUD$58,000 there is a chance that another bull run may be in order. A somewhat similar opinion is shared by independent crypto pundit Michaël van de Poppe, who believes that AUD$57,600 (US$42,300) is the crucial level that BTC needs to overcome, adding: "This is also a daily breaker. If it breaks, I'm assuming a new test of US$46,000 is around the corner and possibly US$50,000."

According to ExoAlpha CIO David Lifchitz, Bitcoin continues to remain stuck between AUD$46,000 and $61,000 because of the macro-factors currently surrounding the global finance sector. Furthermore, he highlighted that if Bitcoin's "correlation" with tech stocks continues to remain high – coupled with the Fed's ongoing interest rate hikes – the price of the flagship cryptocurrency could decline further.

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Bahamians may be able to pay their taxes using cryptocurrency soon

As per a new report, individuals residing in the island nation of the Bahamas may soon be able to make use of digital assets to pay for their yearly taxes. According to a whitepaper released earlier this week, come 2022, Bahamians will most likely be able to utilise various digital currencies – including its local central bank digital currency (CBDC) "the Sand Dollar" – for their filings. On the subject, a statement from local authorities reads as follows:

"The Government will endeavor to ensure that digital assets are not used for the evasion of taxes or sanctions, and will seek to ensure compliance with all applicable Tax information exchange agreements (TIEA) and domestic laws and agreed OECD standards."

Such moves may continue to have a positive impact on investors, leading to the market experiencing more stability in the long term.

Coinbase reportedly in talks to buy cryptocurrency exchange BtcTurk

According to Turkish media outlets, Coinbase, one of the largest cryptocurrency exchanges in the world, is currently holding negotiations with trading platform BtcTurk, with both firms having reportedly agreed to a buyout touted to be worth approx US$3.2 billion. Coinbase's move comes after CEO Brian Armstrong announced that he plans on expanding his company's footprint to every country where digital asset exchanges are allowed to operate legally.

Following Coinbase's well received Initial Public Offering (IPO) last year, the company has continued to make inroads into a number of untapped regions in recent months. As a result, the company has helped bring more legitimacy to the market as a whole, potentially helping drive the price of prominent cryptocurrencies (including BTC) higher.

Interested in cryptocurrency? Learn more about the basics with our beginner's guide to Bitcoin, dive deeper by learning about Ethereum and see what blockchain can do with our simple guide to DeFi.

Disclosure: The author owns a range of cryptocurrencies at the time of writing

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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