Из жизни альткоинов

An analyst broke down the strategy behind the aggressive Bitcoin acquisition being done by MicroStrategy which is gaining attention because of the rising price of the alpha crypto.

Anthony Pompliano, Founder & CEO of Professional Capital Management, understood the mathematical reason behind the company’s investment move but also warned that any investment is exposed to potential risks.

MicroStrategy’s Bitcoin Acquisition

Pompliano said that MicroStrategy is making a bold move to buy more Bitcoin and build up its crypto reserve by using convertible debt to finance the cryptocurrency’s acquisition.

The investment firm offers its shares at a higher price than the current price per share to generate funds for its Bitcoin acquisition.

Pompliano explained that MicroStrategy is selling future equity at a 55% premium to help the company buy more Bitcoin, saying that is a financially attractive move, saying, “This strategy makes sense from a financial perspective.”

The analyst said that it is a beneficial strategy for MicroStrategy because it allows the investment firm to gain significant capital which the company is now using to buy a lot of the leading crypto, saying that this approach makes sense mathematically.

The Bitcoin Investment Plan

In October this year, MicroStrategy announced that it would be conducting a Bitcoin shopping spree by raising $42 billion in new capital in the next three years to finance its goal of buying more BTC.

Some analysts consider this Bitcoin investment strategy as a bold move being eyed by the investment firm.

According to the company’s executive, the objective of MicroStrategy’s capital-raising approach is to get $21 billion in fresh capital from equity offerings and generate another $21 billion from fixed-income securities between 2025 and 2027.

As of September 2024, MicroStrategy is already the largest Bitcoin holders among the publicly traded companies worldwide. Buying more of the crypto would further boost its position at the top spot among public companies.

Associated Risks

Pompliano understood the appeal of the Bitcoin proposition, saying that the move could be lucrative for the investment company.

However, the analyst pointed out that investors must not overlook the risks associated with such investments, saying anyone who wants to embrace MicroStrategy’s approach should understand the risks before dipping their feet into it.

“Now, the counterweight to that is there’s a hell of a lot of people I see saying nothing can go wrong. I’m not in that camp,” he said.

Pompliano explained that the investment firm’s strategy is not foolproof, saying that some people assumed that nothing could derail the investment plan.

“I couldn’t sit here and tell you what can go wrong, but what I can tell you is that an alarm goes off in my head when I start seeing everyone saying nothing can go wrong,” he expressed.

He pointed out there are volatility risks when people invest in Bitcoin, adding that the uncertain regulatory environment could amplify the risks associated with the aggressive purchasing of BTC.

Featured image from Canva, chart from TradingView

Директор по маркетингу Binance рассказала, какими принципами руководствуется крупнейшая криптовалютная биржа мира, принимая решение добавить на площадку новые мемкоины.

Аналитики платформы Matrixport заявили, что при администрации нового президента США может произойти «революция децентрализованных финансов», DeFi. В таком случае интерес рынка с биткоина сместится на другие криптовалюты, сочли эксперты компании.

Сооснователь и директор исследовательского отдела компании Fundstrat Global Advisors заявил, что в 2025 году биткоин преодолеет рубеж в $250 000. В качестве главного фактора, оказывающего максимальное влияние на цену актива, эксперт назвал сокращение предложения монет.

Эксперты компаний Block Scholes и Bybit Analytics представили прогноз стоимости эфира на срок до инаугурации новоизбранного президента США Дональда Трампа. По мнению специалистов, к середине января стоимость актива может приблизиться к отметке $4000.

Crypto is coming to Europe’s popular luxury retail stores. According to reports, Printemps, a popular chain of luxury brands, will start accepting cryptocurrencies for payments.

The luxury store operator has partnered with Binance Pay and Lyzi to offer its customers an option to pay using top cryptocurrency. Binance Pay offers a contactless and secure global payment system supporting 300 cryptos.

With this deal, Printemps customers across all four brands and over 20 stores in France can enjoy the convenience and security of crypto payments. According to the company, the crypto integration will serve over 6.5 million French customers.

Crypto’s Use Cases Continue To Expand

Printemps’ collaboration with Binance Pay and Lyzi reflects the ongoing expansion of use cases for cryptocurrencies. By integrating Binance Pay and Lyzi into its cashier section, the company can now provide its over 6.5 million French crypto-consumers with secure and flexible payment options. Printemps currently runs 20 stores across the country.

Many observers say Printemps’ move will shake up the luxury retail industry. It’s the first European luxury brand to accept cryptocurrencies, underscoring the blockchain’s potential to enhance customers’ shopping experiences.

Binance Pay, Lyzi, And Printemps: An Award-Winning Collaboration

Printemps’ cooperation with Binance Pay and Lyzi will not only reshape the luxury retail shopping experience but also enhance the customer experience while enjoying the blockchain’s promised convenience and security.

The industry has already hailed the partnership, with Printemps and Lyzi collecting an award for their efforts. These companies won the Bronze Laureate Award under innovative Collaboration at the 11ᵉ Nuit du Commerce Connecté. The awards show, hosted by Républik Retail, aims to reward companies that invest in new technologies and innovation, including artificial intelligence.

Printemps Remains Committed To Innovation

According to the company, the industry recognition from Républik Retail underscores their commitment to innovation that can enhance the customers’ shopping experience. In a statement, Emmanuel Suissa, the Chief Partnership Officer, shared that they’re proud to be the first department store network in the country to accept crypto or local and international customers.

Suissa added that the company’s partnership with Lyzi and Binance Pay will enhance the shopping experience and connect customers using Web 3.0 solutions.

With a Binance Pay integration, Printemps shoppers can now pay using Bitcoin and popular altcoins and stablecoins such as USDC and Tether. Lyzi is a leading crypto payment solution that supports over 70 cryptos, including Bitcoin, Binance USD, and Ethereum.

Featured image from Blog Economie Numérique, chart from TradingView

The cryptocurrency market is no stranger to bullish predictions, particularly given the current positive market sentiment. According to a crypto market participant who goes by the name Scofield (@Crypto_Scofield) on social media platform X, there are a few altcoins with bullish potential in the coming weeks and month. 

In his recent post, Scofield shared a list of price targets for various cryptocurrencies, including well-known tokens such as Dogecoin and XRP. Among the notable predictions, he suggested that Dogecoin could reach $3, while XRP could hit $5, describing these price levels as “a matter of time.”

Price Predictions To Stir Crypto Investors

Although the post in which this analyst highlighted these bullish price targets did not come with a technical analysis and potential timelines, it nonetheless plays into the current bullish sentiment surrounding these cryptocurrencies.

XRP, for instance, has been undergoing ultra-bullish inflows and buying pressure from crypto traders, which has caused its price to be trading at its highest point in over three years. At the time of writing, XRP is trading at $1.93, which is its highest level since 2018. This impressive rally has reignited interest in the token and its only a matter of time before the XRP price surpasses the critical $2 threshold.

The XRP price is already up by 270% in the past 30 days, and reaching the predicted $5 mark would translate to a further 160% increase at this point.

Scofield’s assertion that the XRP price could surge to $5 aligns with the bullish sentiment that has surrounded the token since the US presidential elections. Additionally, the expected change in SEC leadership has also sent the XRP price surging more than many would’ve expected. However, reaching $5 would require the XRP price to overcome its current all-time high of $3.40 and maintain consistent trading volume.

Another interesting aspect of Scofield’s predictions is the projection of Dogecoin reaching $3. This prediction resonates with the ongoing enthusiasm surrounding the token, which has seen renewed attention from both retail and institutional investors.

Dogecoin, like XRP, is trading at multi-year highs, recently climbing to $0.4759. Notably, this marks the highest level the Dogecoin price has achieved in three years. For Dogecoin, reaching the predicted $3 mark would translate to a 530% increase from $0.4759.

Other Predictions: A Broader Bullish Sentiment

Scofield’s list extended beyond Dogecoin and XRP, as it covers several altcoins with equally ambitious targets. Notably, he envisions Fetch.ai (FET) climbing to $10, Fantom (FTM) hitting $5, and Injective Protocol (INJ) surging to $150. Additionally, he predicted VeChain (VET) will reach $0.25, Coti (COTI) will hit $1, and Oasis (ROSE), $0.80.   

Featured image from Pexels, chart from TradingView

As part of its efforts to keep up with changes in the financial world, the Brazil Central Bank (BCB) wants new rules on virtual currencies, especially stablecoins. The Central Bank said in a press release on November 29 that there would be a public consultation notice with a plan on how to regulate virtual asset service providers (VASs). The notice also listed situations that international capital regulations will cover.

A key rule in the new proposal is to disallow centralized exchanges from letting customers to withdraw their stablecoins to self-custodial wallets. This latest development is part of BCB’s Stablecoin Withdrawal Ban, which aims to comply with tightening financial regulations.

BCB Works To Comply With Changing Regulations

In a press release and consultation notice, the central bank will soon restrict the transfers of stablecoins or tokens in foreign currencies between locals in situations where existing Brazilian laws already permit payments in a foreign currency.

In a statement, BCB shared that the proposal is a testament to its commitment to complying with the changing realities in the digital asset landscape while protecting the integrity of global capital flows.

As contained in its crypto law passed last December 2022, the new plan lets the BCB monitor the digital currency sector. Interested parties are free to offer their opinions and views until February 28, 2025.

The central government stays as the last arbiter and enforcer of the new cryptocurrency rules even while the public can offer their recommendations. On the official website of the central bank, interested parties may access the complete proposal including guidelines on crypto providers on the withdrawal restrictions on stablecoins.

Other Things To Expect From New Crypto Proposal

According to BCB’s updated proposal, all cryptocurrency investments will be covered by existing regulatory standards that apply to traditional investments. For example, direct foreign investments, external credit, and Brazilian capital in cryptocurrencies need to comply with the current internal capital regulations.

Under the proposal, centralized exchanges must apply for foreign exchange licenses before offering services related to stablecoins.

Stablecoin Limits To Regulate The Industry

Limitations on stablecoin withdrawals highlight the expanding impact of digital assets. The Internal Revenue Service (IRS) of the nation claims that stablecoins account for almost three-quarters of $4.2 billion in September crypto transactions.

Aside from withdrawal limits, Brazil’s central bank calls for stricter rules for digital asset companies. By subjecting these companies to investment standards, users will be protected, and operations can comply with international capital regulations.

The latest move from the Brazil central bank underscores the government’s appreciation of the importance of digital assets and the need to guarantee financial stability.

Featured image from DALL-E, chart from TradingView

XRP has broken past the $1.7 level, signaling a renewed push by the bulls to dominate the market. This critical move has sparked excitement among traders, fueling speculation about its capability for further gains. As momentum builds, the spotlight shifts to whether the altcoin can sustain this strength and continue its upward trajectory.

This article examines XRP’s surge above the $1.7 resistance, exploring the factors bolstering its bullish momentum. It assesses the cryptocurrency’s potential for continued growth, considering technical indicators, resistance levels, and market trends to determine whether the rally can be sustained or if a reversal is imminent.

Analyzing The Break Above $1.7 Resistance

On the 4-hour chart, XRP is pushing to extend its gains toward its next resistance level of $1.9, maintaining a solid position above the $1.7 support level and the 100-day Simple Moving Average (SMA). Staying above these key levels underscores its strength and signals the potential for continued upward movement. As long as the asset maintains this strength, the next target will likely be higher resistance levels, driving the price even more toward $ 1.9 and beyond.

The 4-hour Relative Strength Index (RSI) at 80% indicates strong positive movement for the altcoin, signaling sustained buying pressure. While this suggests continued demand, the RSI approaching the overbought zone means traders will closely monitor for any signs of overextension or pullbacks, which could lead to a short-term correction before the rally resumes.

XRP is showing continued upward momentum on the daily timeframe after breaking through the key $1.7 resistance level and holding above the 100-day SMA as it advances to the $1.9 mark. This solid performance underscores sustained bullish strength, suggesting that the token is well-positioned for additional price growth. The 100-day SMA reinforces the possibility of continued upward movement.

Furthermore, the daily RSI has increased to 89%, well above the 50% threshold, reflecting strong upbeat strength for the asset. Significantly, this implies upside pressure and sustained buying activity, with no signs of slowing down. While entering the overbought zone, the RSI highlights the rally’s intensity, implying a persistent rise, though traders will remain cautious for possible corrections.

Price Outlook: Can XRP Secure Long-Term Momentum Above $1.7?

XRP’s price outlook is closely tied to its ability to hold above the $1.7 level. Staying above this support could provide a strong foundation for an extended upside, with the next target being its all-time high of $1.9. A successful breakout above this level could open the door to new record highs.

However, if the cryptocurrency reaches the $1.9 level and fails to break through, a pullback to the $1.7 support is likely. Furthermore, a break below this support could lead to further losses, with the $1.3 level as the next target, potentially followed by even lower levels.

XRP has surged past the $1.62 level, placing it less than 5% away from the crucial $2 mark. This impressive rally has seen the price gain over 50% since last Tuesday, capturing the attention of both investors and analysts. The bullish momentum suggests the price could continue its upward trajectory, fueled by growing optimism and strong market sentiment. However, such rapid gains also bring potential risks, particularly in volatile conditions.

CryptoQuant analyst Maartunn has highlighted critical insights, suggesting that XRP’s recent surge might be driven by leveraged positions rather than organic demand. A Leverage-Driven Pump indicates heightened speculative activity, which could lead to sharp corrections if momentum weakens. As the price approaches multi-year highs, market participants must navigate this scenario cautiously, balancing enthusiasm with awareness of possible downside risks.

The coming days will be pivotal for XRP as it nears the psychological $2 level. A successful breach of this mark could reinforce the bullish case, setting the stage for new highs. Conversely, a failure to maintain current levels might result in increased volatility and retracement. For now, it remains one of the most closely watched assets in the crypto market, with all eyes on its next move.

Can XRP Bulls Sustain This Pace?

XRP’s meteoric rise, surging over 285% in less than 30 days, has sparked debate among investors. Many are questioning whether the current pace can be sustained by the high demand needed to push prices further. While the rally has reignited optimism in the market, skeptics suggest this could either lead to a parabolic bull run or serve as an exit liquidity strategy for whales.

In the crypto space, exit liquidity refers to retail investors who buy into a rapidly rising asset, often driven by hype, allowing early investors or whales to sell off their holdings at higher prices. This concept raises concerns about the sustainability of XRP’s rally, particularly if organic demand cannot keep pace with speculative momentum.

Maartunn has shared an intriguing perspective on XRP’s recent performance. Analyzing price action alongside Open Interest (OI) data, he labeled the rally as a Leverage-Driven Pump. OI has surged by 37% during this period, indicating a substantial rise in leveraged trading activity.

While leverage can amplify gains, it also introduces heightened volatility and risk. Maartunn noted that a similar event in the past triggered a 17% drawdown, warning investors to remain cautious.

As XRP approaches key psychological levels, the next steps will be crucial. Investors must weigh the potential for continued growth against the risks of increased leverage and possible whale-driven selloffs.

Price Action: Key Levels To Watch

XRP is trading at $1.92, breaking past the critical $1.60 resistance level and continuing its streak of new highs. The price is now closing in on the previous cycle’s top at $1.96, a level that holds significant psychological and technical importance. This momentum has fueled optimism among investors, who are eyeing the $2 mark as a confirmation of XRP’s long-term bullish structure.

A breakout above $2 would solidify bullish sentiment, marking a critical milestone in XRP’s ongoing rally. Such a move could pave the way for even higher price targets as confidence surges in the market. However, traders remain cautious about the potential for a retracement. If XRP fails to sustain gains above $2, a correction could send prices back to key support levels, particularly around $1.60, where significant demand has been observed.

The next few days will be critical in determining whether the price can maintain its upward trajectory or face a temporary pullback. As the asset nears its all-important $2 mark, investors should keep an eye on trading volumes and market sentiment, which will likely dictate XRP’s direction in the short term.

Featured image from Dall-E, chart from TradingView

Following a week-long period of sideways movement, XRP has resumed its bullish trajectory gaining by 19.81% on Friday to reach a local peak of $1.84. During this price rally, market shares of the prominent altcoin rose to $104.96 billion, as it became the fifth-largest cryptocurrency brushing past Binance Coin (BNB).

Related Reading: Ripple CEO Reacts To Trump’s Billionaire Treasury Secretary Nominee

XRP Set To Reach $5, But Major Correction Awaits – Analyst 

Amidst the high bullish sentiments in the XRP community, renowned analyst EGRAG Crypto has painted a potential price trajectory for the altcoin. According to EGRAG Crypto, if XRP’s current price gain is to mirror a previous pattern from 2017 where it experienced a major increase of over 1273%, the crypto asset is likely to trade as high as $5.2 – $5.3.

This prediction rallies with previous forecasts by analysts where the altcoin is tipped to reproduce its first major price explosion recorded in early 2017, following a 200% price surge in the last month. However, EGRAG’s version of this bullish prediction warns that XRP is likely to experience a 63% price decline following an ascent to above $5. 

Albeit, the analyst highlights that this potential price fall to around $1.94-$1.96, a price range that is higher than the coin’s all-time high recorded in 2021 suggesting much possibility of a massive price rally in the coming bull run.

Nevertheless, EGRAG also warns that while XRP’s current price action is similar to 2017-2018, the timeline of the anticipated price surge will likely change. The analyst explains in a “SPACETIME thesis” that the digital coin may experience a similar level of percentage price gain but not within the same time frame as previously seen.

XRP Price Overview

At the time of writing, XRP trades at $1.84 reflecting a 19.81% gain as earlier stated. The token’s daily trading volume is also up by 143.48% indicating a high level of market interest.

In regards to short-term price movements, XRP has recently surpassed a major resistance zone at $1.76 setting the stage for a potential rally to the token’s current all-time high of $3.84. 

This price trajectory seems quite plausible considering the consistently heightened bullish sentiments around the fifth-largest crypto asset following recent developments.  

For example, former chairman of the US Commodities Futures and Trading Commission (CFTC) Chris Giancarlo has recently suggested the US Securities and Exchange Commission (SEC) is likely to drop its lawsuit against Ripple in line with the pro-crypto policy of US President-elect Donald Trump.

Developments such as this in addition to a potential spot ETF are likely to boost the demand for XRP as the crypto bull run prepares to take off.

The Dogecoin price chart hints at a potential ascending triangle pattern formation, which could propel its price to new levels. In an X (formerly Twitter) post, a crypto analyst revealed that if the popular meme coin succeeds in creating this bullish technical pattern, it could trigger a price surge to $0.56.

Dogecoin Price Eyes $0.5 Surge 

According to crypto analyst Rekt Capital, Dogecoin is showing signs of forming a possible Ascending Triangle pattern on its price chart, signaling a potential breakout to a new price target at $0.56 target. Typically, an Ascending Triangle forms when a cryptocurrency breaches the upper horizontal trend line with a subsequent rise in volume. This technical indicator is often flagged as bullish as it forms during an uptrend as a continuation pattern. 

Rekt Capital’s Dogecoin chart highlights the cryptocurrency’s price action this Q4, pinpointing a potential Ascending Triangle formation that appears to have started following DOGE’s recent price rally. Earlier this month, the Dogecoin price skyrocketed from around $0.2 to over $0.4, recording impressive gains as the demand for meme coins surged. 

Based on the analyst’s statements, this bullish trend could be augmented if the Ascending triangle formation is confirmed. Rekt Capital has revealed that if the current pattern in the Dogecoin chart is indeed an Ascending triangle, the cryptocurrency could witness a significant price increase to $0.569. 

The analyst also reveals that if Dogecoin successfully forms this triangle pattern, it could increase investor confidence and trigger money flow into other meme coins. Similar to how a Bitcoin price rally influences the trajectory of lower-cap altcoins, a Dogecoin price surge also impacts other meme coins in the market.  

More often than not, meme coins like Shiba Inu (SHIB), Pepe (PEPE) and others tend to follow Dogecoin’s bullish trend, experiencing major price increases after the DOGE’s momentum diminishes slightly. 

For the Ascending Triangle pattern to be confirmed, Rekt Capital has revealed that Dogecoin needs to close a daily candle above the resistance level at $0.43. This means the meme coin must trade above this level to move towards $0.56 or higher. 

Analyst Says Dogecoin’s Real Target Is Above $2

Prominent crypto analyst Bluntz has disclosed that the real price target for Dogecoin this cycle is $2.2. The analyst acknowledged that the Dogecoin price could reach $1, but this target was a bit underwhelming for the popular meme coin. 

Bluntz has also revealed that the DOGE/BTC pair has had an impressive performance this year, and he expects it to hit a new all-time high this cycle. Currently, at 0.00000436, the analyst projected a rise to 0.00002, marking a 373.68% increase at the 1.618 Fibonacci level. 

Currently, the price of Dogecoin is $0.42, reflecting a 6.5% surge in the last 24 hours despite declining by over 6% in the past week. CoinMarketCap’s data has also revealed that the Dogecoin daily trading volume is up 82%, underscoring increasing interest and demand from investors. 

Ripple Labs is on the verge of receiving approval from New York’s top crypto regulator for its new stablecoin, RLUSD. According to a Fox Business report, the New York Department of Financial Services (NYDFS) is expected to greenlight the stablecoin, with a potential launch date set for December 4.

Ripple Set To Launch RLUSD Stablecoin

If approved, Ripple will legally be able to offer RLUSD to the public, solidifying its position as a major player in New York’s regulated digital finance market and expanding its footprint to the broader stablecoin ecosystem. 

However, both Ripple Labs and the regulator have yet to comment on the matter or provide any official communication to further corroborate the information gathered by Fox’s sources.

Ripple’s primary business revolves around its decentralized global payments network, RippleNet, which leverages blockchain technology to facilitate faster, cheaper, and more efficient cross-border transactions for banks and businesses. 

This approach serves as an alternative to the traditional global bank settlement system, SWIFT. Ripple’s native token, XRP, acts as a bridge currency for settlement, although its status remains uncertain due to ongoing legal challenges with the US Securities and Exchange Commission (SEC). 

The SEC has argued that XRP should be classified as an “unregistered security,” a claim Ripple contests in an appeals case currently before the Second Circuit.

The legal battle has had significant implications for XRP’s market performance. Following the SEC’s lawsuit in late 2020, XRP’s price plummeted over 50%, resulting in a market cap loss of approximately $16 billion. Since then, XRP has fluctuated, often remaining below the $1 mark as Ripple navigates its legal challenges. 

However, recent developments, including Donald Trump’s election victory on November 5, ant the official departure announcement by the SEC chair Gary Gensler, have spurred optimism among investors, boosting XRP’s price to $1.89 and positioning it as the fifth largest cryptocurrency by market cap, exceeding $107 billion.

Competing With Established Stablecoins 

By entering the stablecoin market with RLUSD, Ripple aims to provide a stable alternative for customers seeking to utilize digital currencies without the volatility associated with XRP.

To operate within this regulatory framework, the firm is expected to obtain a limited purpose trust charter, allowing it to offer specific digital asset-related services without the complexities associated with traditional banking regulations. 

Additionally, the NYDFS offers a BitLicense, which enables exchanges such as Coinbase and Robinhood to provide trading and custody services for cryptocurrencies.

Ripple’s entry into the stablecoin sector comes at a time when other firms, including Paxos and Gemini, have already secured approval to offer their stablecoins, PAX and GUSD, respectively. 

Keith Grossman, president of Enterprise at MoonPay, expressed enthusiasm for the new entry into the stablecoin market, highlighting the importance of “well-capitalized, highly regulated players” in the evolving global financial landscape.

Featured image from DALL-E, chart from TradingView.com 

The call of the Bitcoin price reaching $100,000 cooled off this past week, especially after the premier cryptocurrency slipped beneath $93,000 during the last seven-day span. Fortunately, BTC has somewhat recovered from the slump, climbing as high as $98,500 on Friday, November 29.

Following the recent Bitcoin price decline, investors have been left wondering if the market cycle top is close — or if there is still more room for growth. A prominent on-chain analytics firm has revealed that the crypto market is still in a bullish phase.

Bitcoin Still In A Bull Market, But Blockchain Firm Sounds Warning

In its latest report, the market analytics platform CryptoQuant has put forward a target for the Bitcoin price top in the current cycle. According to the blockchain firm, the market leader’s price top is more in the range of a six-figure valuation.

The major rationale behind this projection is based on the realized price valuation metric, which measures the price at which each coin was last transacted. From a historical perspective, this Bitcoin price band has often acted as an indicator of the market top in past cycles.

According to CryptoQuant, the realized price metric is currently pointing to $146,000 as the possible peak in this cycle. As shown in the chart below, the price band (the red line), currently around $147,000, acted as the market top around April and May 2021.

Furthermore, the holdings of new investors are yet to reach an extreme level, which was a signal in the past two market tops. As of now, the value held by new Bitcoin investors represents a little above 50% of the total money in BTC; this figure significantly pales compared to 90% and 80% witnessed in 2017 and 2021, respectively.

CryptoQuant warned:

Bitcoin price tops typically occur when new investors enter the market to buy at extremely high prices, which causes them to hold a large proportion of the total value invested.

Moreover, the retail trading activity is yet to hit levels often associated with Bitcoin price peaks. Historically, bull cycles have been seen to top out when BTC retail investors are accumulating coins aggressively. However, this phenomenon is still absent in the current market condition.

It is worth mentioning that CryptoQuant expects a pullback for the Bitcoin price in the short term. According to the on-chain intelligence firm, MicroStrategy’s stock price is becoming overheated relative to the company’s Bitcoin holdings value.

Bitcoin Price At A Glance

As of this writing, the price of Bitcoin stands around $96,500, reflecting an almost 3% increase in the past 24 hours. While this single-day rally has helped shave off some of BTC’s loss in the past week, the premier cryptocurrency is still down by over 2% within the timeframe.

Featured image created by DALL-E, chart from TradingView

While the crypto market eagerly anticipates Bitcoin (BTC) breaking the $100,000 price level, the premier cryptocurrency may have even more room for growth in 2025 as the global M2 money supply expands.

Global Liquidity Surge: A Catalyst For Bitcoin?

In a detailed analysis on X, Jamie Coutts, chief crypto analyst at Real Vision, brought his follower’s attention to the expansion and contraction of the global M2 money supply over the past few years. 

Coutts noted that after bottoming out at $94 trillion in Q4 2022, the global M2 money supply has risen to $105 trillion. Over the same period, Bitcoin’s market capitalization soared fivefold, from approximately $400 billion to nearly $2 trillion at the time of writing. He added:

In other words, 10% of the new money supply has leaked from the fiat system into the emerging global reserve asset of Bitcoin (gold, equities etc have absorbed new money as well). What happens if M2 expands by the usual $30T this cycle?

Notably, the global M2 money supply is projected to surge past $127 trillion in 2025 due to global liquidity concerns – an increase of more than 18% from the current $107 trillion. Assuming that 10% of this increased liquidity – about $2 trillion – is captured by BTC, the digital asset’s price could skyrocket in 2025.

To reinforce his argument, Coutts shared the following chart comparing the Federal Reserve’s balance sheet expansion, U.S. M2 money supply growth, U.S. real wage changes, and Bitcoin’s price performance. The data reveals that BTC has significantly outperformed other instruments, especially as the US dollar depreciates with increasing supply.

Mixed Views On BTC And Money Supply Correlation

While some analysts foresee Bitcoin benefiting from the expanding money supply, opinions differ regarding the strength of this correlation. The global M2 money supply, which includes all cash and short-term bank deposits, is expected to peak by January 2026 before contracting to $118 trillion later that year. Along this trajectory, Bitcoin could potentially reach $150,000.

In contrast, however, crypto analyst Joe Consorti cautioned that BTC’s correlation with the global M2 money supply could drag it down 20% to 25%, all the way down to $70,000. In reply, entrepreneur David Quintieri said BTC is too volatile to be meaningfully tracked against anything.

2024 has been a pivotal year for the leading cryptocurrency, with the approval of spot Bitcoin exchange-traded funds (ETF) in the US, the Bitcoin Halving, rising institutional adoption, and the victory of pro-crypto Donald Trump in the November election.

Against such bullish backdrop, it’s not surprising to see ambitious BTC price targets being shared by institutional investors. BTC trades at $97,944 at press time, up 3.1% in the past 24 hours.

On-chain data shows the Ethereum Exchange Supply Ratio has continued to move flat around 2016 lows, a sign that may be bullish for ETH.

Ethereum Exchange Supply Ratio Has Been At Lows Recently

In a CryptoQuant Quicktake post, an analyst has talked about the recent trend in the Ethereum Exchange Supply Ratio. The “Exchange Supply Ratio” is an on-chain metric that keeps track of the ratio between ETH’s Exchange Reserve and its total supply in circulation.

The “Exchange Reserve” here refers to a measure of the total amount of the cryptocurrency that’s currently sitting in the wallets connected to centralized exchanges.

When the value of this indicator goes up, it means the investors are depositing their coins to exchanges. As one of the main reasons why holders would transfer to these platforms is for selling-related purposes, this kind of trend can have a bearish effect on the asset’s price.

On the other hand, the metric registering a decline suggests a net amount of the supply is exiting from the exchanges. Generally, investors take their coins off into self-custodial wallets whenever they plan to hold into the long-term, so such a trend may turn out to be bullish for ETH.

Now, here is the chart shared by the quant that shows the trend in the Ethereum Exchange Supply Ratio over the past decade:

As displayed in the above graph, the Ethereum Exchange Supply Ratio hit a peak back in 2020. During this high, the exchanges held more than 30% of the asset’s entire circulating supply.

Since then, however, the indicator has been in a constant decline, despite the fact that the asset’s supply has gone up. This means that the investors have pulled out coins at a rate exceeding the supply expansion.

This year, the metric has fallen to sideways movement, suggesting an equilibrium has been reached in the sector. Interestingly, this flat action has come despite the price appreciation that Ethereum has been enjoying.

The trend would naturally imply that not many investors of the cryptocurrency are ready to part with it yet. At the same time, though, a consistent accumulation like before isn’t happening, either, so it’s not like there aren’t any sellers at all.

Nonetheless, the fact that the indicator has at least remained in balance throughout this rally could be a positive sign for its sustainability. The metric could now be to keep an eye on in the future, just to make sure that the trend continues.

Any reversals to the upside would, of course, signal that the investors have started to sell, which may mean the Ethereum bull run could be approaching its climax.

BTC Price

At the time of writing, Ethereum is trading around $3,600, up more than 9% over the last week.

In a major move towards successfully regulating digital assets in the country, Russian President Vladimir Putin has signed a law that creates a new legal framework for taxing Bitcoin mining and transactions, recognizing them as property and setting the stage for formal taxation.

Russia’s New Bitcoin And Crypto Tax Law

According to local media reports, digital currencies, including Bitcoin, will be classified as property under the new law. This classification extends to currencies utilized for foreign trade settlements within the Experimental Legal Regime (EPR) framework in digital innovation. 

Notably, the law stipulates that mining and selling digital currencies will be exempt from value-added tax (VAT), which could incentivize further investment and participation in the crypto market.

One of the law’s key provisions requires mining infrastructure operators to report to tax authorities regarding the users of their services for cryptocurrency issuance. Failure to provide this information promptly could result in a fine of 40,000 rubles ($380).

Regarding income tax implications, cryptocurrency obtained through mining will be categorized as “in-kind income,” a term typically used to describe non-cash payments made in the form of goods or services. 

The value of the mined cryptocurrency will be determined based on prevailing market quotes. This income will be subject to a progressive tax scale, allowing for deductions related to mining expenses.

25% Tax Rate Starting In 2025

The law also outlines a two-tier taxation system for income generated from the acquisition, sale, or other forms of cryptocurrency circulation. 

Income up to 2.4 million rubles ($22,600) will be taxed at a rate of 13%, while any income exceeding this threshold will incur a 15% tax. These earnings will be included in the same tax base as income from securities, bank deposits, and other financial sources.

For corporations engaged in Bitcoin mining, a standard income tax rate of 25% will be applied starting in 2025. However, the legislation limits the tax regimes available to organizations and individual entrepreneurs (IPs) involved in cryptocurrency activities. 

Specifically, these entities will not be permitted to adopt a single agricultural tax, utilize a simplified taxation system, or benefit from the “Automated Simplified Taxation System.” The patent system and self-employed regime will also not apply to Bitcoin mining and transactions.

The law is set to take effect upon official publication, with certain provisions subject to different timelines. Transitional provisions have also been included to facilitate the implementation of these regulations.

At the time of writing, the leading crypto is trading at $98,500 after a brief 7% correction earlier this week, inching closer to its all-time high of $99,500.

Featured image from DALL-E, chart from TradingView.com 

Французский универмаг класса люкс с 159-летней историей, Printemps, стал одним из первых крупных ретейлеров Европы, принимающих платежи в криптовалютах.

Taiwan has accelerated the introduction of its regulatory Anti-Money Laundering (AML) framework for crypto businesses. The new regulations, set to start nearly a month in advance, require Virtual Asset Service Providers (VASPs) to comply with the registration mandate to prevent stricter penalties.

Taiwan Fast-Tracks New AML Mandate

Taiwan’s Financial Supervisory Commission (FSC) recently announced it would advance the implementation of its crypto AML registration regulation from January 1, 2025, to November 30, 2024.

The AML overhaul, announced in October, will introduce stricter AML guidelines for VASPs and require all crypto firms to complete the AML registration with the Taiwanese government by September 2025.

The businesses that fail to register will not be authorized to offer services in the country and could face a two-year prison sentence or fines of up to 5 million NTD, worth around $155,000.

Per the new regulations, the listing and delisting of digital assets will be closely monitored, and crypto firms are expected to establish measures against illicit trading and report any suspicious activity related to trading volume and price movement.

Moreover, FSC requires registered crypto service providers to prepare an annual risk assessment report and detail client assets. The regulator mandated digital asset custodians to hold customer assets in trust or separate them from the platform’s assets.

To register, firms must submit a form that outlines their business nature. Any changes to the information provided in this form should be updated within five business days with the Securities Over-the-counter (OTC) Trading Center.

The new regulatory framework will replace Taiwan’s current system for VASPs. Companies that completed the previous AML regulations must comply with the new system and complete the registration process.

After the announcement, the FSC fined two local exchanges, MaiCoin and BitoPro, for violating AML guidelines related to customer due diligence (CDD), transaction monitoring, record-keeping, and suspicious transaction reporting.

More Crypto-Related Laws To Come

This year, Taiwan has been working to update its regulatory framework to implement crypto-related laws that expand on its seemingly cautious but friendly approach. The country’s Ministry of Finance recently announced it would work on a framework that addresses crypto tax evasion.

As reported by Bitcoinist, Finance Minister Chuang Tsui-yun and Director-general of the Taxation Administration Sung Hsiu-ling pledged to review the current regulations within the next three months to “better enable the government to tax cryptocurrency gains.”

The finance minister admitted that the country had not implemented a system that effectively collects digital asset-related taxes from individuals despite having policies to collect business and corporate income taxes from the 26 crypto exchanges that completed the AML registration.

Legal experts noted that the financial authorities might face challenges addressing this issue with the current tax laws as investors can evade scrutiny “by disguising the transactions as overseas activity conducted in U.S. dollars.” As a result, Taiwan’s regulators must amend these regulations to address crypto tax evasion.

Автор книги о финансах «Богатый папа, бедный папа», бизнесмен и инвестор, поделился в Х мнением о том, почему споры между сторонниками биткоина и золота не имеют смысла.