Crypto Industry News:
Senators Patrick Toomey (belonging to the Republican Party) and Kyrsten Sinema (Democrats) prepared a joint bill. It aims to exempt cryptocurrency transactions up to $ 50 from capital gains tax.
A draft of a new law that would release small amounts from cryptocurrency trading has entered the US Senate. Previously, similar proposals had been presented to Congress, which were to set a benchmark of $ 200. The latest draft assumes that the law would apply to transactions below $ 50, subject to an adjustment of this ratio with inflation.
At the moment, the tax office in the United States treats cryptocurrency assets as property transactions. Transactions made in digital assets, however, are considered investments, not payments. This means Americans are required to pay taxes on capital gains whenever they exchange or sell their cryptocurrencies.
This state of affairs dramatically hinders the potential use of this asset class in mainstream trading. This fact, in turn, has been used many times by critics of cryptocurrencies and regulators. They use this tact as an argument against the usefulness of cryptocurrencies as a means of payment.
Technical Market Outlook:
At the beginning of the week, the ETH rate fell, but on Tuesday it rebounded from the demand zone in the range of $ 1,350-$ 1,400. At the moment, it has reacted upwardly to the decisions of the FED. From a technical point of view, you can see that the price is moving towards the resistance line of $ 1700. This is a place where you can look for further possible downward reactions. As a reminder, the macroeconomic and geopolitical situation still does not provide positive indications of a possible return to the long-term growth path, so the potential extent of a demand recovery may only be a form of correction.
Weekly Pivot Points:
WR3 - $1,776
WR2 - $1,660
WR1 - $1,592
Weekly Pivot - $1,545
WS1 - $1,476
WS2 - $1,429
WS3 - $1,313
Trading Outlook:
After the 13 consecutive weekly down candles on Ethereum, the down trend might have been terminated at the level of $880. So far every bounce and attempt to rally is being used to sell Ethereum for a better price by the market participants, so the bearish pressure is still high, but the bulls had managed to increase the price of ETH by 90% so far. The next target for bulls is seen at the level of $1,710 and $1,954.
