Spanish rehab center adds crypto trading addiction to services list

A luxury rehabilitation center in Spain has recently added services aimed at treating a relatively new kind of addiction — crypto trading.The center, called “The Balance,” is a Switzerland-founded wellness center, with its main facility located on the Spanish island of Mallorca along with representations in London and Zurich.While it has been known to treat addiction ailments such as alcohol, drugs and behavioral health — it has now recently begun offering services aimed at combatting crypto trading addiction, according to a report from the BBC.The Feb. 5 report revealed that one of the center’s clients reached out so that he could “wean off crypto” after reportedly pouring in $200,000 worth of crypto trades each week.The treatment involves a four week stay — which comprises of therapy, massages and yoga. The bill can be upwards of $75,000.In another part of the world, Castle Craig Hospital — a Scottish-based addiction rehabilitation clinic treating high-adrenaline crypto traders since 2018 — has seen over 100 clients come in with “dangerous” cryptocurrency problems.Castle Craig’s rehabilitation facility. Source: Castle Craig.In Asia, Diamond Rehabilitation — a Thailand-based wellness center operating since 2019 — has also added services dedicated to cryptocurrency addiction rehab and treatment. The organization said it approaches rehab through the use of Cognitive Behavioral Therapy (CBT), Motivational Interviewing (MI) and Psychodynamic Theory (PT) as part of its comprehensive, multi-stage approach to help traders overcome their addiction. Related: How to control stress and depression in a crypto winter It is believed that the euphoric highs and crushing lows of the fast-paced, 24/7 cryptocurrency trading arena have brought in real demand for rehabilitation centers to offer services for trading addicts.An article by Family Addiction Specialist estimates based on gambling disorder statistics that about 1% cryptocurrency traders will develop a severe pathological addiction, while 10% will experience other problems beyond that of a financial loss.The 24/7 nature of crypto trading has caused many to constantly check price charts. Source: Family Addiction Specialist.Symptoms of this addiction according to Family Addiction Specialist, includes constantly checking the prices online — particularly in the middle of the night.

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Crypto needs ‘adult supervision’ and turmoil to ‘grow up’ — Microstrategy co-founder

High-profile crypto bankruptcies and a hearty price crash are necessary evils to help the industry grow, while greater regulation is a must, according to Microstrategy co-founder Michael Saylor. In a Feb. 3 interview on CNBC’s Squawk on the Street, Saylor opined on potential incoming United States crypto regulation after the bankruptcy of FTX, saying:“The crypto meltdown was painful in the short term, but it’s necessary over the long term for the industry to grow up.”He added the industry “has some good ideas” — implying the Bitcoin (BTC) Lightning network — but added some in the space “implemented those good ideas in an irresponsible fashion.”Today’s interview with @MorganLBrennan covered the success of @MicroStrategy, global adoption of #Bitcoin and #Lightning⚡️, the evolution of the crypto industry, and the digital transformation of money. pic.twitter.com/bEnLOVbpiJ— Michael Saylor⚡️ (@saylor) February 3, 2023Saylor said the crypto space needs direction from entities long-involved in the traditional financial markets and input from regulators — in particular the Securities and Exchange Commission (SEC).“What [the industry] needs is adult supervision. It needs the Goldman Sachs’ and the Morgan Stanley’s and the BlackRock’s to come into the industry. It needs clear guidelines from Congress. It needs clear rules of the road from the SEC.”This “meltdown,” according to Saylor, educated many on crypto while simultaneously revealing that it’s “time for the world to provide a constructive, transparent framework for digital assets” so the financial system can move “into the 21st century.”Saylor on Munger’s crypto criticismSaylor also responded to criticisms leveled by Charlie Munger, the vice chair of insurance and investment firm Berkshire Hathaway, saying the 99-year-old investment veteran should take time to study Bitcoin.On Feb. 1, Munger opined that crypto is “not a currency, not a commodity, and not a security” instead calling it “gambling” and believing the U.S. should “obviously” bring in laws to ban crypto.Related: Film review: ‘Human B’ shows a personal journey with BitcoinSaylor agreed Mungers crypto-criticism wasn’t “totally off” but there are “10,000 crypto tokens which aren’t gambling,” adding:“Charlie and the other critics, they’re members of the Western elite and they’re continually prodded for an opinion on Bitcoin and they haven’t had the time to study it.”He added if Munger “spent 100 hours studying” Bitcoin then “he would be more bullish on Bitcoin than I am.”Saylor pointed to emerging markets such as Lebanon, Argentina and Nigeria which have high crypto-use rates and use cases spanning from inflation hedging to remittances.“I’ve never really met someone […] that spent some time to think about it that wasn’t enthusiastic about Bitcoin.”

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Bitcoin, Ethereum and select altcoins set to resume rally despite February slump

After the impressive rally in January, Bitcoin (BTC) seems to be taking a breather in February. This is a positive sign because vertical rallies are rarely sustainable. A minor dip could shake out the nervous longs and provide an opportunity for long-term investors to add to their positions.Has Bitcoin price bottomed?The opinion remains divided, however, on whether Bitcoin has bottomed out or not. Some analysts expect the rally to reverse direction and nosedive below the November low while others believe the markets will continue to move up and frustrate the traders who are waiting to buy at lower levels.Crypto market data daily view. Source: Coin360In an interview with Cointelegraph, Morgan Creek Capital Management founder and CEO Mark Yusko said “the crypto summer” could begin as early as the second quarter of this year. He expects risk assets to turn bullish if the United States Federal Reserve signals that it will slow down or pause interest rate hikes. Another potential bullish catalyst for Bitcoin is the block reward halving in 2024. Could the altcoins continue their up-move while Bitcoin consolidates in the near term? Let’s study the charts of Bitcoin and select altcoins that may outperform in the next few days.BTC/USDTBitcoin has been gradually correcting since hitting $24,255 on Feb. 2. This indicates profit booking by short-term traders. The price is nearing the strong support zone between $22,800 and $22,292. The 20-day exponential moving average ($22,436) is also located in this zone, hence the buyers are expected to defend the zone with all their might.BTC/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA and the relative strength index (RSI) in the positive territory indicate that bulls have the edge. If the price turns up from the support zone, the bulls will again attempt to catapult the BTC/USDT pair to $25,000. This level should act as a formidable resistance.On the downside, a break below the support zone could trigger several stop losses and that may start a deeper pullback. The pair could first drop to $21,480 and if this support also fails to hold up, the next stop may be the 50-day simple moving average ($19,572).BTC/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the price is trading inside an ascending channel but the RSI has been forming a negative divergence. This suggests that the bullish momentum may be weakening. A break and close below the channel could tilt the short-term advantage in favor of the bears. The pair could then fall toward $21,480.Alternatively, if the price rebounds off the support line of the channel, the bulls will again attempt to kick the pair above the channel. If they manage to do that, the pair may resume its uptrend.ETH/USDTEther (ETH) has been trading near the $1,680 resistance for the past few days. Usually, a tight consolidation near an overhead resistance resolves to the upside. ETH/USDT daily chart. Source: TradingViewWhile the upsloping 20-day EMA ($1,586) indicates advantage to buyers, the negative divergence on the RSI suggests that the bulls may be losing their grip. If bulls want to assert their dominance, they will have to propel and sustain the price above $1,680. If they do that, the ETH/USDT pair may rally to $1,800. This level may again act as a resistance but if bulls do not allow the price to dip below $1,680, the rally may stretch to $2,000.Instead, if the price turns down and plummets below the 20-day EMA, the ETH/USDT pair could tumble to $1,500. This is an important support level to monitor because a bounce here could keep the pair range-bound between $1,500 and $1,680. On the other hand, if the $1,500 support cracks, the pair may dive to $1,352.ETH/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears have pulled the price below the 20-EMA. This is the first indication that the bulls may take a step back. There is a minor support at the 50-SMA but if it fails to hold, the pair may slide to $1,550 and then to $1,500.Conversely, if the price turns up from the moving averages, the bulls will again attempt to thrust the pair above the overhead resistance. If they succeed, the pair may resume the uptrend.OKB/USDTWhile most cryptocurrencies are well below their all-time high, OKB (OKB) hit a new high on Feb. 5. This suggests that bulls are in command.OKB/USDT daily chart. Source: TradingViewSome traders may book profits near the overhead resistance of $44.35 as it may act as a formidable resistance. If the price turns down from the current level but rebounds off the 20-day EMA ($37), it will suggest that bulls continue to buy the dips. That could increase the possibility of a break above $45. The OKB/USDT pair could first skyrocket to $50 and thereafter to $58.If the price turns down and breaks below the 20-day EMA, it will indicate that the traders may be rushing to the exit. The pair could then drop to $34 and later to the 50-day SMA ($30).OKB/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears are trying to protect the $44.35 level. The pair could turn down and reach the moving averages, which is an important support to keep an eye on. If the price bounces off the moving averages, the bulls will again try to overcome the barrier at $45 and start the next leg of the uptrend.Contrarily, if the price breaks below the 50-SMA, the selling could intensify and the pair may slump to $36 and then to $34. Such a move could delay the resumption of the uptrend. Related: Fantom’s 5-week winning streak is in danger — Will FTM price lose 35%?ALGO/USDTAlgorand’s (ALGO) recovery reached the breakdown level of $0.27 on Feb. 3. The bears defended this level but the bulls have not given up much ground. This suggests that the bulls expect the relief rally to continue.ALGO/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA ($0.24) and the RSI in the positive territory indicate that bulls have the upper hand. If the price turns up from the 20-day EMA, the likelihood of a break above $0.27 increases. The ALGO/USDT pair could then travel to $0.31 where the bears may try to offer strong resistance.If the price turns down from this level but bounces off $0.27, it will suggest that the downtrend could be over in the short term. The pair could then attempt a rally to $0.38.This positive view could invalidate in the near term if the pair turns down from the current level and slides below $0.23. The pair could then dive to the 50-day SMA ($0.21).ALGO/USDT 4-hour chart. Source: TradingViewThe 4-hour chart shows that the bears are guarding the $0.27 level but a minor positive is that the bulls have not allowed the price to stay below the 50-SMA. If the price turns up from the current level, the bulls will again try to clear the overhead hurdle. If they do that, the pair could pick up momentum and surge toward $0.31.Contrary to this assumption, if the price continues and breaks below the moving averages, the pair risks a drop to $0.23. The bears will have to smash this support to gain the upper hand.THETA/USDTTheta Network (THETA) successfully completed a retest of the breakout level on Feb. 1, indicating that bulls have flipped the downtrend line into support.THETA/USDT daily chart. Source: TradingViewThe bulls will try to push the price to the overhead resistance at $1.20. This level may act as a minor hurdle but if bulls do not give up much ground from $1.20, the THETA/USDT pair could extend its up-move to $1.34. This is an important level for the bears to defend because if this resistance crumbles, the pair could soar to $1.65.If bears want to stop the bulls, they will have to quickly pull the price back below the 20-day EMA. The pair could then fall to $0.97 and later to the 50-day SMA ($0.89).THETA/USDT 4-hour chart. Source: TradingViewThe pair bounced off the $0.97 level, which becomes an important level to watch out for on the downside. A breach of this level is likely to tilt the advantage in favor of the bears and open the doors for a possible drop to $0.85.The rally is facing resistance near $1.20 but the upsloping 20-EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers push the price above $1.20, the momentum should pick up for a rally toward $1.34.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Bitcoin price may retest $20K on US CPI amid absence of soft landing — trader

Bitcoin (BTC) could face a retest of $20,000 and the United States fail its plans for a “soft landing” on inflation, new analysis says.In a YouTube update on Feb. 5, Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, warned that the tide is due to turn for risk assets.U.S. “probably” headed for recession — Van de Poppe Amid confusion over how incoming U.S. macroeconomic data may affect market sentiment, there is an increasing chance that the rebound seen in crypto and stocks this year may flip bearish, Van de Poppe says.Bitcoin, for example, put in 40% gains in January, but like some others, he believes that a disappointing February is a real possibility.“I think that people should understand that there is no soft landing, that there is likely a continuation of this downwards trend on the markets,” he said about the longer-term status quo.The U.S., Van de Poppe continued, would “probably have” a recession thanks to the extent of the Federal Reserve’s interest rate hikes.Should a comedown begin to show itself, for BTC/USD, a potential retest target lies between $20,000 and $21,000.Much depends on the outcome of Consumer Price Index (CPI) data for January, due Feb. 14. Should it show that inflation is slowing less than expected or even disrupting that downtrend, the results could benefit the U.S. dollar while taking the wind out of the risk asset rally.The U.S. dollar index (DXY), as Cointelegraph reported, is currently in the process of consolidating after dropping 13% since mid-2022, when it circled twenty-year highs.“In this case, the next week will probably bring a case of the dollar starting to rally, or the week after with CPI and PPI, so that’s why it’s very important to keep an eye on this chart,” Van de Poppe added.U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingViewBitcoin bears “stuck in cash”Ahead of a less significant macroeconomic week, meanwhile, others continued to debate the potential for a BTC price pullback.Related: Bitcoin clings to $23.5K as trader says BTC ‘identical’ to 2020 breakoutA higher low would provide a better entry point for longs, popular trader Crypto Tony suggested, arguing that the bear market remained in play”Even if this was the start of a bull market, and personally I am still in the camp we are not You can still get a good safer entry on the higher low pullback,” he told Twitter followers on the day.Some familiar bullish voices were as active as ever, however, including cypto and market education, analysis and prediction tool, IncomeSharks.”People still seem to be confused as to why it’s been up only,” it summarized in a tweet on Feb. 3. BTC/USD traded at around $23,400 at the time of writing, according to data from Cointelegraph Markets Pro and TradingView, with around 15 hours until the U.S. weekly close.”Just remember majority of bulls are still holding and not selling. Bears are stuck in cash. Slowly but surely the bears are caving in and buying. The stubborn ones keep shorting driving price up further.”BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewThe views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Is it possible to achieve financial freedom with Bitcoin?

Over the last 14 years, investors have been attracted to Bitcoin (BTC) for many reasons — from being a potential solution to the economic woes of the existing fiat economic system to reaching the unbanked and diversifying portfolios. However, a large portion of the general public sees Bitcoin as a gateway to financial freedom amid growing fiat inflation and geopolitical uncertainties.Traditional banking systems have, time and again, served as a tool for centralized governments to dictate financial access, especially during emergencies. Most recently, the Ukraine-Russian war served as a case study for how cryptocurrencies helped the displaced and the unbanked access funds for basic necessities. As intended by the creator Satoshi Nakamoto, Bitcoin seeks to bring power back to the people. No amount of regulations, sanctions or bans can stop people from using Bitcoin as money. Beyond that, a calculated investment in Bitcoin has the potential to bring people closer to attaining their dream of financial freedom. But how can people achieve that?HodlThe massive volatility of cryptocurrencies coupled with the restlessness of an investor is a recipe for an instant loss. Many fail to understand that Bitcoin — unlike other cryptocurrencies — is a long-term investment. Hence, Bitcoin veterans recommend holding the asset during bull markets and buying the dips during bear markets.According to data from UpMyInterest, setting aside a few off-years, Bitcoin holders witnessed a mean annual return of 93.8%, which in its best-performing year, spiked to 302.8%.Historical summary of Bitcoin annual returns. Source: UpMyInterestAs simple as it sounds, hodling (crypto lingo for holding assets) has proved difficult for investors. Some factors that trigger abrupt Bitcoin selling include the spreading of FUD (fear, uncertainty and doubt) and price movements.While it makes sense in the short-term to earn profits off Bitcoin’s volatility, zooming out the price chart reveals a long-term greater incentive in holding. Moreover, investors owning Bitcoin will always have the option to utilize this spending across geographical boundaries without losing value.Dollar-cost averagingConsidering Bitcoin as a viable long-term investment option, many investors tend to implement the dollar-cost averaging (DCA) strategy. This involves setting aside a predetermined dollar amount from a regular income to be reinvested in Bitcoin every day, week or month. While El Salvador was initially criticized for adopting Bitcoin as a legal tender amid crippling inflation, the country could repurpose the resultant unrealized gains to fund social projects, such as building hospitals and schools.With the Bitcoin bull run running out by 2022, Salvadoran President Nayib Bukele followed a strategy similar to DCA, wherein the country would purchase 1 BTC every day.We are buying one #Bitcoin every day starting tomorrow.— Nayib Bukele (@nayibbukele) November 17, 2022When Bukele announced his plan for buying Bitcoin, it was priced roughly at $16,600, as shown by data from Cointelegraph Markets Pro and TradingView. Bitcoin price movement ever since Nayib Bukele announced plans to purchase 1 BTC every day. Source: TradingViewSince then, BTC’s price has surged 40.46%, providing much-needed relief to Salvadorans. Investors looking for financial freedom must pursue a similar strategy while reacting to market changes and public sentiment.Self-custodyWhen it comes to the long-term holding of Bitcoin, the key is not to trust any other third-party entity with the assets’ private keys. Investors who store Bitcoin on crypto exchanges unknowingly give away complete control of their assets. Ever since the FTX fraud came to light, the case of self-custody grew stronger. Investors that suffered losses owing to the alleged misappropriation of funds realized the importance of self-custody. Maintaining ownership of the private key — via self-custodial wallets — becomes paramount for those that seek financial freedom in its truest sense.Will be sending an email every week strongly advising our people to never keep savings on any exchange, including @paxful This is the way ! Self custody your savings ALWAYS! pic.twitter.com/DI95Gaa5Y6— Ray Youssef (@raypaxful) December 11, 2022

The FTX fallout also forced crypto exchanges to prove the existence and safety of users’ funds in order to avoid a low liquidity situation.Binance Releases Proof of Reserves System | Binance Support https://t.co/pdA2OdvAKG— CZ Binance (@cz_binance) November 25, 2022

Although hardware alternatives for crypto self-custody require an upfront investment, it is up to the users to choose an ideal method of storing the private keys, even if it means writing the private keys on a piece of paper.The three practices mentioned above — hodl, DCA and self-custody — form the main pillars of financial freedom. However, users are not limited from trying other strategies that suit their needs.Achieving financial freedom with Bitcoin is possible. Given the nascency of the crypto ecosystem, investors are advised to focus on the long-term benefits of Bitcoin while reaping short-term gains in the process.

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Bitcoin clings to $23.5K as trader says BTC ‘identical’ to 2020 breakout

Bitcoin (BTC) circled $23,500 on Feb. 4 as bulls refused to give up support in out-of-hours trading.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin price conjures 2020 memoriesData from Cointelegraph Markets Pro and TradingView showed BTC/USD holding a narrow range in place since the Feb. 3 Wall Street open. Macroeconomic data releases from the United States provided modest volatility but no overall trend change as traders bided their time heading into the weekend.Opinions on the longer-term outlook were mixed, however, with some maintaining that there was little reason to trust that Bitcoin’s rally would continue.“Seeing $50,000 calls already on Bitcoin and we have yet to complete a higher high and higher low market structure change,” popular trader Crypto Tony summarized in part of a tweet on the day.More optimistic was fellow trader Credible Crypto, who doubled down on a theory that compared current BTC price action to that of late 2020, just after Bitcoin had passed its old 2017 all-time high.“Price action has developed beautifully off our lows, mimicking the bottom formation that preceded our last impulse from 10k-60k+. Current consolidation (circled in green) also looks identical to PA from that impulse,” he wrote in an update to a corresponding Twitter thread. “BTC may continue to pump while most wait for a pullback…”BTC/USD comparative charts. Source: Credible Crypto/ TwitterOthers were concerned about a turnaround in the fortunes of the U.S. dollar, which could impact risk assets across the board if it were to continue.The U.S. Dollar Index (DXY) was “ringing up alarm bells” for popular trader Bluntz, who revealed a segue into stablecoins.“After such a long and deep sell-off, do we think the DXY is already done on the upside? I don’t. Lotta shorts to squeeze yet,” macro investor David Brady commented about the dollar’s decline from twenty-year highs in Q3 2022.U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingViewRSI poised for “bullish continuation”Focusing on monthly timeframes, meanwhile, trader and analyst Rekt Capital eyed a potential cue for Bitcoin to dip before continuing higher.Related: Bitcoin due new ‘big rally’ as RSI copies 2018 bear market recoveryThis came in the form of its relative strength index (RSI), which in January bounced from all-time lows to reclaim a key support level.While acknowledging that historically, Bitcoin markets “haven’t really seen double bottoms” in RSI, he argued that there was still a chance that a higher low could come next.“Now just reaffirming and keeping these levels consistent and stable — that’s what we really want to see for bullish continuation, ” he concluded in a YouTube video released on Feb. 3.Bitcoin relative strength index (RSI) annotated chart (screenshot). Source: Rekt Capital/ YouTubeA Twitter survey from Rekt Capital likewise delivered a narrow consensus that a dip should come for BTC/USD.The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Tax strategies allow crypto investors to offset losses

2022 was tough for the crypto market. A recent report published by security services platform Immunefi found that the crypto industry lost a total of $3.9 billion in 2022. Detrimental losses such as these are often concerning for crypto investors, yet there may be a silver lining behind decreasing assets for investors reporting crypto on their taxes. Lisa Greene-Lewis, a certified public accountant at TurboTax, told Cointelegraph that while crypto investors made huge gains in 2021, this changed drastically in 2022. “We have seen a crypto winter occur, and TurboTax wants to help investors cope with their losses,” she said. According to Greene-Lewis, tax-loss harvesting is the most important notion to keep in mind when it comes to saving money when filing taxes. She said: “With crypto, you can offset gains with losses. Any leftover losses can be offset up to $3,000 against ordinary income like wages. Losses exceeding $3,000 can be carried forward to the next tax year.”Greene-Lewis explained that as new, young investors enter the crypto market, awareness around tax-loss harvesting is becoming more critical. According to a Pew Research Center survey cited in TurboTax’s latest tax trend report, 16% of Americans have invested in, traded or used cryptocurrency. Individuals between the ages of 25 and 34 are more likely to have cryptocurrency sales transactions than any other age group. “Many of these individuals are unaware of tax-loss harvesting,” Greene-Lewis said.Percentage of tax filers with cryptocurrency transactions. Source: TurboTaxWhile the last day for tax-loss selling for 2022 passed on Dec. 30, Greene-Lewis reiterated that crypto investors can still perform this action since those losses roll forward. Steven Lubka, vice president of Swan Global Wealth — Swan Bitcoin’s private client services arm — further told Cointelegraph that tax-loss harvesting is a great option for Bitcoin (BTC) investors. “This is probably the most actionable tax strategy. Swan Global Wealth works with private clients to provide valuable market insights, yet most individuals did not know that tax-loss harvesting was an option,” he said.Recent: What crypto hodlers should keep in mind as tax season approachesLubka further pointed out that tax-loss harvesting is beneficial because there is currently no “wash sale rule” applied to crypto, which would prevent the tax break if an investor bought that same asset 30 calendar days before or after the sale. “This means that crypto investors can sell their assets and then instantly buy those back while locking in the loss on their taxes.” While this is certainly advantageous, Lubka believes that this process will likely change in the near future.Donating to charity is another way for crypto investors to reduce their taxable income, which can be a good strategy during a bull market. Alex Wilson, co-founder of The Giving Block — a crypto donation platform — told Cointelegraph that donating cryptocurrency is tax efficient because it allows investors to avoid capital gains tax. He said:“If an investor bought Bitcoin at $1 and sold it at current market prices, that would normally be taxed. But if you donate the Bitcoin to a nonprofit, it becomes tax deductible. These deductions are even higher when donated to a 501(c)(3) charity.”Wilson shared that The Giving Block has seen an increasing number of crypto donations over the past year, especially as investors become more aware of the benefits. “I expect this year to be big for donations because crypto is already on the rise,” he said, adding that nonfungible token (NFT) philanthropy is gaining momentum. “The Giving Block has seen almost 30% of its donations coming from NFTs.” According to Wilson, NFT donations function the same as crypto donations. 17.75037 ETH, $28,455.64~ to @FeedingAmerica Approximately 320,000 meals provided so far.https://t.co/yp8grV4pl5— @jackbutcher (@jackbutcher) January 29, 2023Individual retirement accounts, or IRAs, are yet another way for crypto investors to reduce their taxable income. Similar to a 401(k), assets held in traditional IRAs will grow tax-deferred, meaning investors won’t have to pay income tax until assets are taken out.While there has recently been controversy around United State citizens purchasing digital assets using funds in IRAs, Lubka noted that crypto-focused IRA options are improving. For instance, he explained that in the coming weeks, Swan Bitcoin will launch a low-fee Bitcoin IRA accessible to all the platform’s users. “Traditional IRAs charge exorbitant fees. The only yearly fee with Swan’s Bitcoin IRA is .25%,” he said. Such a product is likely to gain traction with crypto investors, with a Charles Schwab survey recently finding that many zoomers and millennials would like to have crypto as part of their 401(k) retirement plans. Things to consider moving forwardAlthough there appear to be several benefits associated with reporting cryptocurrency when filing a tax return, there is still a lack of awareness among many crypto investors. To put this in perspective, the “2023 Annual Crypto Tax Report” from CoinLedger — a crypto and NFT tax software company — found that 31% of investors surveyed did not report their crypto on their taxes, with half not doing so because they didn’t make a profit and 18% not even knowing crypto was taxable. David Kemmerer, co-founder and CEO of CoinLeder, told Cointelegraph that the Internal Revenue Service and other government agencies need to provide better guidance to educate crypto investors about taxes. For instance, he pointed out that it’s important for crypto holders to understand how the 2021 infrastructure bill may impact the crypto tax reporting landscape.According to CoinLedger’s 2023 report, the 2021 infrastructure bill will likely result in “cryptocurrency brokers” having to send 1099-Bs — a specific type of 1099 that reports capital gains and losses from securities or properties — to the IRS for the 2023 tax year. As of now, crypto tax reporting rules detailing such procedures have been delayed because the IRS still needs to develop the definition of a “crypto broker.”Recent: Bitcoin’s big month: Did US institutions prevail over Asian retail traders?Pat White, the CEO of Bitwave — a crypto tax, accounting and compliance platform — further told Cointelegraph that crypto investors should be concerned that the IRS might impose wash trading rules in the future. However, he noted that there are still options for tax-loss harvesting in the case of this scenario. “Investors could find ways to exit their coin positions into different assets. For example, Bitcoin could go into wrapped Bitcoin, which could satisfy the wash trading rules but would also harvest a loss,” he explained. White further remarked that individuals running an Ethereum 2.0 node are technically receiving rewards daily. As such, he noted that these users would have to consider whether or not rewards would be recognized as income in 2022. This will become critical following the Shanghai upgrade allowing for the withdrawal of staked Ether (ETH). He said:“The Shanghai fork will eventually drop, and people will be able to withdraw rewards. If you are reporting your taxes correctly, you will want to recognize this as income. However, users may be able to make advantageous tax decisions depending on when they want to recognize those rewards.”This article does not contain investment advice or recommendations for tax report. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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Sri Lanka against Bitcoin adoption, rejects Draper’s anti-corruption pitch

On a recent visit to Sri Lanka, American billionaire Tim Draper pitched the idea of adopting Bitcoin (BTC) as a legal tender to fight against the corruption that contributed to hyperinflation in the island country. However, a key Sri Lankan authority — central bank Governor Nandalal Weerasinghe — believed doing so would worsen the country’s economic situation.Taking time from a TV shoot in Sri Lanka, Draper met President Ranil Wickremesinghe and Weerasinghe to recommend Bitcoin as a viable option for getting out of financial problems. Tim Draper in Sri Lanka speaking about economic development. Source: YouTubeDuring the meeting, Draper pointed out a key concern staring right at Sri Lanka:“Have you seen Sri Lanka in the news? It’s known as the corruption capital. A country known for corruption will be able to keep perfect records with the adoption of Bitcoin.”As he recommended using “decentralized currency” to the head of Sri Lanka’s central bank, he received a short “we don’t accept” reply. Weerasinghe further stated:“Adoption of 100% Bitcoin won’t be a Sri Lanka reality ever.” Instead, Weerasinghe believed that having Sri Lanka’s own fiat currency was critical for monetary-policy independence and would ensure efficient inclusion and disburse electronic welfare payments.“We don’t want to make the crisis worse by introducing Bitcoin,” Weerasinghe concluded.Related: Australia introduces classification for crypto assetsMicroStrategy, a software analytics company co-founded by Michael Saylor, shared plans to continue offering BTC trading services despite incurring an unrealized loss of $1.3 billion in 2022.During a Feb. 2 earnings call, MicroStrategy’s chief financial officer, Andrew Kang, said:“We may consider pursuing additional transactions that may take advantage of the volatility in Bitcoin prices, or other market dislocations that are consistent with our long-term Bitcoin strategy.”According to Kang, MicroStrategy held 132,500 BTC (worth $1.84 billion) as of Dec. 31, 2022. Of the lot, 14,890 BTC were held directly by the business and the rest by its subsidiary MacroStrategy.

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Protocol Labs, Chainalysis and Bittrex add to crypto layoff season

Several crypto firms have made job cuts this week amid the ongoing crypto winter, retaining “impactful” employees as they prepare for a “longer downturn.”At least 216 jobs were slashed between three crypto firms – open-source software laboratory Protocol Labs, blockchain data firm Chainalysis and U.S. cryptocurrency exchange Bittrex, with reductions of 89, 83 and 44 employees respectively.Juan Benet, CEO of Protocol Labs, the parent company of Filecoin (FIL), announced the job cuts in a blog post on Feb. 3 stating that the company has had to focus its headcount “against the most impactful and business critical efforts.”He stated that the company’s decision to cut “89 roles,” approximately 21% of its workforce, was to ensure it is well positioned to “weather this extended winter.”Benet suggested that the company must “prepare for a longer downturn,” given it has been an “extremely challenging” time for the crypto industry.Meanwhile Bittrex employees were informed by CEO Richie Lai over email on Feb. 1 that the company has made a reduction to its workforce to “ensure the long-term viability” of the company.The email was leaked via Twitter on Feb. 2, in which Lai stated that despite the leadership team “working aggressively” to reduce expenses and increase efficiencies over the last several months, the efforts have not produced the “results necessary.”Lai added that the market conditions have forced the company to reset their strategy and balance its “investments with the new economic environment.”According to Washington State employment data on Feb. 2 it was revealed that Bittrex cut 83 jobs.Related: Crypto recruitment execs reveal the safest jobs amid layoff seasonMaddie Kennedy, director of communications at Chainalysis, told Forbes on Feb. 1 that those “primarily in sales” at the company were let go, as 44 of its 900 employees, approximately 4.8% of the workforce, were slashed.These layoffs come after news that at least 2,900 staff were cut across 14 crypto firms in January.Coinbase had the largest layoffs amongst those firms, cutting 950 of its staff on Jan. 10.Meanwhile competitor exchanges Crypto.com, Luno and Huobi had reductions of approximately 500, 330 and 320 staff respectively.Cointelegraph reached out for comment from Protocol Labs, Chainalysis and Bittrex but did not receive a response by the time of publication.

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Price analysis 2/3: BTC, ETH, BNB, XRP, ADA, DOGE, MATIC, DOT, LTC, AVAX

Bitcoin’s (BTC) rally in 2023 has been boosted by expectations that the United States Federal Reserve will slow down the pace of its rate hikes as inflation has started cooling down. Some even anticipate a rate cut by the end of the year. That assumption received a jolt on Feb.3 when the U.S. employment data for January beat expectations and unemployment hit its lowest level since May 1969.If markets do not react negatively to news perceived as bearish, it’s a sign that the sentiment has turned positive. Traders may then shift their focus to the next important economic data release. Trading firm QCP Capital said in its latest market update that the Consumer Price Index print on Feb. 14 could move markets. They believe the risks to the data are to the upside.Daily cryptocurrency market performance. Source: Coin360The current crypto bear market seems to have driven the institutional investors to the sidelines. According to a new survey conducted by JPMorgan, 72% of institutional traders said they do not plan to “trade crypto/digital coins” in 2023. Only 14% of the respondents showed an inclination to trade this year.Will Bitcoin and altcoins witness profit booking in the near term? Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USDTBitcoin bounced off the $22,800 support on Feb. 1, indicating that bulls are buying the dips to this level. The bulls pushed the price above $24,000 on Feb. 2 but they could not sustain the higher levels. BTC/USDT daily chart. Source: TradingViewThe rising moving averages and the relative strength (RSI) in the overbought zone indicate that the path of least resistance is to the upside. If the price turns up from the current level or $22,800, the BTC/USDT pair could surge to $25,000. This level is likely to act as a formidable barrier.The first sign of weakness will be a break and close below the 20-day exponential moving average ($22,279). That could trigger the stops of several short-term traders and the pair could then fall to $21,480.ETH/USDTBuyers propelled Ether (ETH) above the overhead resistance of $1,680 on Feb. 2 but they could not sustain the breakout. The price gave up all the gains on the day and closed below $1,680.ETH/USDT daily chart. Source: TradingViewThe upsloping 20-day EMA ($1,571) and the RSI in the positive territory indicate that bulls are in control. They may again attempt to overcome the overhead barrier at $1,680 and start the journey to $2,000. The $1,800 level may provide some resistance but it is likely to be crossed.If bears want to gain the upper hand, they will have to sell aggressively and yank the price back below the 20-day EMA. If they can pull it off, the ETH/USDT pair may decline to $1,500 and if this support cracks, the pullback could eventually reach $1,352.BNB/USDTBNB’s (BNB) tight-range trading between the 20-day EMA ($306) and the overhead resistance at $318 resolved to the upside on Feb. 2.BNB/USDT daily chart. Source: TradingViewAlthough bears sold the rally on Feb. 2, a positive sign is that the buyers did not allow the price to slide back below the breakout level of $318. This suggests that the bulls are trying to flip the $318 level into support. If they can pull it off, the BNB/USDT pair could skyrocket to $360 as there is no major barrier in between.If bears want to halt the up-move, they will have to pull the price back below the 20-day EMA. The pair could then drop to the 50-day simple moving average ($276).XRP/USDTXRP (XRP) once again turned down from the $0.42 resistance on Feb. 2, indicating that bears are trying to protect this level.XRP/USDT daily chart. Source: TradingViewThe price is getting squeezed between the 20-day EMA ($0.40) and $0.42. This suggests a breakout may be around the corner. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate that bulls have the upper hand. This increases the possibility of a break above $0.42. If that happens, the XRP/USDT pair could soar to $0.51.Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, the decline could extend to the 50-day SMA ($0.37).ADA/USDT Attempts by the bears to sink Cardano (ADA) below the 20-day EMA ($0.37) failed on Feb. 1. The bulls fiercely defended the level as seen from the long tail on the candlestick.ADA/USDT daily chart. Source: TradingViewThe negative divergence on the RSI points to weakening momentum but the upsloping 20-day EMA suggests that buyers have the edge. If the price turns up from the current level, the bulls will again try to catapult the ADA/USDT pair toward the overhead resistance at $0.44.On the contrary, if the price turns down and breaks below the 20-day EMA, it will signal that traders may be booking profits. That could open the doors for a potential drop to the 50-day SMA ($0.31).DOGE/USDTThe long tail on Dogecoin’s (DOGE) Feb. 1 candlestick shows that the bulls aggressively purchased the dip to the 20-day EMA ($0.08). However, buyers failed to build upon this strength and overcome the barrier at $0.10.DOGE/USDT daily chart. Source: TradingViewThe DOGE/USDT pair is stuck between the 20-day EMA and $0.10. The gradually upsloping 20-day EMA and the RSI in the positive territory indicate that buyers have a slight edge. If the price once again rebounds off the 20-day EMA, the bulls will try to overcome the resistance at $0.10. If they manage to do that, the pair could rise to $0.11.On the other hand, if the price slips below the 20-day EMA, the pair could drop to the 50-day SMA ($0.08). This is an important level for the bulls to defend because if it cracks, the pair could retest $0.07.MATIC/USDTPolygon (MATIC) turned up from the breakout level of $1.05 on Feb.1 and reached above $1.25 on Feb. 2. The long wick on the day’s candlestick suggests that short-term traders may have booked profits at higher levels.MATIC/USDT daily chart. Source: TradingViewA positive sign is that the bulls did not cede ground to the bears and are attempting to push the price to the target objective at $1.30. This level may again act as a strong barrier but if buyers bulldoze their way through, the MATIC/USDT pair could reach $1.70.Alternatively, if the price turns down sharply from the current level, the MATIC/USDT pair could drop to $1.05. This is an important level to keep an eye on because a bounce off it could keep the pair range-bound between $1.05 and $1.30 for a few days. Related: Bitcoin’s big month: Did US institutions prevail over Asian retail traders?LTC/USDTLitecoin (LTC) continued its northward march and skyrocketed above the psychological level of $100 on Feb. 1. This rise may have tempted short-term traders to book profits.LTC/USDT daily chart. Source: TradingViewThe LTC/USDT pair could enter a minor correction but the bulls are likely to buy the dip to the 20-day EMA ($90). If the price turns up from the current level or rebounds off the 20-day EMA, the bulls will try to extend the up-move to $107.This positive view could invalidate in the near term if the price turns down and breaks below the 20-day EMA. Such a move will indicate that the bulls may be rushing to the exit. The pair could then slump to $81 and later to $75.DOT/USDTPolkadot (DOT) bounced off the 20-day EMA ($6.21) on Feb. 1 and broke above the overhead resistance of $6.84 on Feb. 2. The bulls could not maintain the higher levels as seen from the long wick on the Feb. 2 candlestick.DOT/USDT daily chart. Source: TradingViewA positive sign is that the bulls did not allow the price to break back below the resistance line. This indicates that traders are trying to flip this level into support. Buyers will have to sustain the price above $7 to gain control. The DOT/USDT pair could then surge to $8 where it may face strong resistance from the sellers.If bears want to regain control, they will have to quickly sink the price back below the 20-day EMA. The pair could then enter a corrective phase and plummet to $5.50.AVAX/USDTAvalanche (AVAX) soared above the overhead resistance at $22 on Feb. 2 but the long wick on the day’s candlestick shows that bears are selling on rallies.AVAX/USDT daily chart. Source: TradingViewThe rising moving averages suggest that bulls are in command but the negative divergence on the RSI indicates that the momentum may be weakening. If buyers do not give up much ground from the current level, the likelihood of a break above $22 increases. The AVAX/USDT pair could then attempt a rally to $30.Contrarily, if the price slips below $20.50, the pair could reach the resistance line. The bears will have to sink the pair below this support to tilt the advantage in their favor. The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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