As its price dropped to the $25,000 region last week, Bitcoin (BTC), the first and still most significant cryptocurrency in the world, is still in deep danger. The full implications of the US Treasury Department’s reinvigorated campaign against traders and taxpayers will only become clear over the next few days. The “integrated approach” was urged by Prime Minister Narendra Modi for the management of crypto assets. According to data, the total market fear and greed index has a score of 35 out of 100, leaning more towards fear among investors.
Before we continue, readers should be aware that the general cryptocurrency market and coin prices are very volatile. The expected future behavior of cryptocurrencies cannot be predicted with any degree of certainty. The goal of this post is to assist investors in keeping informed of the most significant recent market developments, impending noteworthy events, and current market circumstances. Investors are urged to conduct their own research before making any decisions.
Prices Of Crypto Over The Last Week
The total value of the cryptocurrency market was $1.06 trillion as of last Monday, August 21. BTC was trading about $26,080, and ETH was trading around $1,675.
The market cap as a whole dropped to $1.05 trillion a week later.
DeFi’s total volume is currently $1.62 billion, at 9.15% of the 24-hour market volume. The entire volume for stablecoins is currently $16.43 billion, at 92.83 percent of the 24-hour market volume. According to data, the total market fear and greed index was at 35 points (out of 100) for dread.
BTC has a 48.28% market share at the time of writing.
A high of $26,722.62 was reached by Bitcoin over the previous seven days, and a low of $25,589.48 was recorded on August 23.
While August 24 saw a high of $1,688.73 and August 23 a low of $1,603.60 for Ethereum, respectively.
Crypto Events To Note
On Sunday, Prime Minister Narendra Modi spoke at the B20 Summit and underlined the importance of implementing a comprehensive plan to handle issues related to cryptocurrencies. His support for the creation of a comprehensive strategy to address worries about digital currency was particularly noteworthy.
There is a problem with cryptocurrencies, Prime Minister Modi remarked. In this case, an increasingly comprehensive approach is required. This requires the development of an international framework that addresses the needs of all parties.
A clear definition of a “broker” in the cryptocurrency space has been introduced by the US Treasury Department. The long-standing question of whether decentralized finance platforms and miners will be compelled to acquire personal information from their customers is effectively answered by this newly developed definition, which clarifies the tax reporting obligations for crypto companies and investors.
In response to the 2021 Infrastructure Investment and Jobs Act, the Treasury Department published a thorough proposed rule on Friday that is almost 300 pages long. This proposal states that certain entities, including centralized crypto exchanges, payment processors, particular hosted wallet providers, decentralized exchanges, and people or organizations that redeem crypto tokens they created will be required to comply with the reporting requirements.
Additionally, the Treasury Department unveiled the 1099-DA, a revolutionary special tax form created with these recognized brokers in mind. This action provides much-needed clarity in this area by resolving a long-standing conundrum regarding the best US tax form for taxpayers.
Miners will be exempt from the application of these tax restrictions, according to the Treasury Department’s proposed guidelines. The proposed guideline does state, however, that “certain” decentralized finance systems will not be eligible for this exemption and will be required to abide by the defined tax duties.
As of right now, it’s unclear how these changes will impact the market as a whole in the days to come.
Crypto Traders’ Opinions of the Current Market Situation
Edul Patel, co-founder and CEO of Mudrex, said, Bitcoin fluctuated around the $26,000 mark over the weekend. As a result of upbeat comments from JPMorgan analysts and declining open interest in Bitcoin futures contracts on the Chicago Mercantile Exchange, the price of Bitcoin and market sentiment both increased. Ethereum, in contrast, is currently worth around $1,650. Following a decline brought on by Chairman of the US Federal Reserve Jerome Powell’s speech on Friday, market sentiment quickly recovered. Powell stressed the continuous need to maintain a tight monetary policy in the US until inflation exhibits persistent signals of slowdown at the Jackson Hole Symposium in Kansas City. The US Treasury Department’s latest proposal for handling taxes on digital assets sparked fury on the cryptocurrency Twitter. At the B20 Summit on Sunday, Prime Minister Modi emphasized the need for a worldwide framework for cryptocurrencies as well as an integrated approach.
Rajagopal Menon, vice president of WazirX, provided his perspective. There were no significant updates in cryptocurrency the week before. However, new rounds of funding for blockchain initiatives have raised industry expectations. As important token values held stable, the market maintained its apprehension regarding interest rate increases. Trading volumes increased by over 7%, signaling a break from the downward trend of this sector’s data from the previous month.
Disclaimer: The use of NFTs and cryptocurrency products is unregulated and can be quite dangerous. Any losses resulting from such transactions might not be subject to any regulatory remedy. Due to market risks, cryptocurrency is not a valid form of payment. Before making any type of investment, readers are urged to consult with a professional and carefully study the offer document(s) as well as any relevant key literature on the issue. The reader bears the entire expense and risk of any investment made based on speculative cryptocurrency market projections.
