Bitcoin has seen very little movement in the past 24 hours, with prices trading in a narrow range as the holiday season keeps activity low. Market conditions remain calm, and there have been no major breakouts so far. At the time of writing, Bitcoin is holding above an important short-term support zone near $85,500. As …
As Bitcoin (BTC) struggles to maintain its position below the $90,000 threshold, market sentiment appears to be shifting toward the possibility of a new bear market. Notably, analyst Ali Martinez has drawn comparisons with historical market cycles to forecast Bitcoin’s trajectory. Bitcoin Market Patterns In a recent social media post, Martinez highlighted a recurring pattern that suggests it typically takes around 1,064 days for Bitcoin to transition from a market bottom to a market top, followed by approximately 364 days from a market peak back to the next bottom. Related Reading: Ethereum Fails To Surpass $3,000: Predictions For The Final Days Of The Year In the first cycle, the market bottomed out in January 2015 and reached its peak in December 2017, exactly 1,064 days later. This was followed by a bear market that lasted 364 days, culminating in the bottom in December 2018. The second cycle mirrored this pattern: the market bottomed in December 2018 and reached its apex in November 2021, again over a span of 1,064 days. Subsequently, another downturn followed, leading to a bottom in November 2022, when Bitcoin traded around $15,500. Next Bottom At $37,500? Currently, the analyst highlights that the market is in what could be the third cycle, having witnessed a market bottom in November 2022 and a current peak above $126,000 reached back in October. Applying the historical patterns of these cycles, it suggests that Bitcoin is now within the 364-day correction window, indicating a potential bottom could materialize around October 2026 — approximately 288 days from now. Related Reading: Altcoin Struggles: What The Future Holds And The Potential For A 2026 Revival Examining past bear markets offers additional context for projecting potential downside. The bear market from 2017 to 2018 saw a correction of approximately 84%, while the market decline from 2021 to 2022 experienced a retracement of roughly 77%. Averaging these two corrections, Martinez suggests an expected retracement of around 80%, positioning Bitcoin’s next market bottom at around $37,500. Currently, the market’s leading cryptocurrency is trading slightly above the $88,290 mark, which is a 30% gap from the current peak. Featured image from DALL-E, chart from TradingView.com
A new report by blockchain analytics firm AMLBot has revealed major differences in how the two largest stablecoin issuers, Tether and Circle, handle the freezing of crypto assets linked to illegal activity. According to the report, between 2023 and 2025, Tether froze around $3.3 billion worth of USDT, while Circle froze about $109 million in …
The Ethereum price has struggled to reclaim the critical $3,000 mark for the past 48 hours, raising concerns about potential declines in the cryptocurrency’s value if this essential support level is not regained by the end of the week. Analyst Predicts Further Downside Market analyst Ted Pillows pointed out on social media platform X (formerly Twitter) that without a quick recovery above $3,000, Ethereum could face further downside pressures, possibly dropping toward the $2,800 range in the near term. This scenario would indicate an additional retracement of approximately 5% from its current trading price, which hovers just above $2,940. This ongoing struggle adds to the 16% decline recorded in the monthly time frame, highlighting the precarious situation for broader cryptocurrency prices. Related Reading: This Friday’s Bitcoin Options Expiry Could Shake Up The Market: What To Look Out For Another analyst, Columbus, sought to understand Ethereum’s lackluster performance relative to Bitcoin (BTC). He noted that Ethereum continues to trade below its Volume Weighted Average Price (VWAP), struggling to gain traction above this critical metric. The bounce observed from the $2,800 to $2,850 range appears more responsive than impulsive, in the analyst’s words, suggesting that while there are buying interests, conviction in the rally remains weak. Columbus further remarked that there is considerable liquidity layered overhead, particularly within the $3,050 to $3,250 zone. This liquidity has successfully capped any attempts to push prices higher. Unless Ethereum can reclaim this area and achieve consistent acceptance above it, upward movements are likely to be more about short-term rotations into supply rather than genuine trend continuation. On the downside, a failure to hold the $2,850 mark could expose Ethereum to deeper losses, potentially leading to a downturn toward lower liquidity levels between $2,400 and $2,700, where the bulk of liquidity is concentrated. Will Ethereum Drop To $1,300 In 2026? Looking further into the future, market expert CryptoBullet painted a more somber picture of Ethereum’s potential trajectory for 2026. He has introduced a new fractal model for Ethereum that suggests bearish outcomes for investors anticipating a bull run next year. In a social media post, CryptoBullet presented a daily chart of Ethereum, outlining key price targets and indicating that while a price recovery might occur in January and February, subsequent months could see a significant downturn. Related Reading: These Five Key Drivers Could Boost XRP To $5 By 2026, Claims Top Analyst According to this analysis, Ethereum’s brief recovery could falter against existing resistance levels between $3,600 and $3,800, potentially culminating in a dramatic decline to a target price of $1,385. If this fractal model mimics Ethereum’s performance in 2022, it could signify a staggering 63% drop in value for the leading altcoin. Featured image from DALL-E, chart from TradingView.com
Recent market dynamics have seen Ethereum (ETH) at the forefront of a significant decline in the altcoin sector, pushing many top cryptocurrencies below crucial price levels. Market expert CyrilXBT has taken to social media platform X (formerly Twitter) to unravel the factors contributing to this downturn and explore the potential for a recovery rally in 2026. Altcoin Struggles CyrilXBT began his analysis by addressing the role of Bitcoin (BTC) dominance in the market. When Bitcoin’s dominance increases, capital tends to concentrate within the asset rather than exiting the broader cryptocurrency market. Related Reading: Expert Predicts Bitcoin Could Hit $70,000, Drawing Parallels To December 2021 Crash This indicates that Bitcoin becomes a refuge for investors seeking safety, while altcoins transform into sources of liquidity. As a result, risk compresses prior to any expansion, a pattern consistently observed in previous cycles before altcoins regain strength. Another contributing factor to the current turmoil is tax-loss harvesting. Cryptocurrencies are one of the few major asset classes that have seen declines compared to January 1st, with equities and gold demonstrating gains. To lock in losses before year-end, funds are actively selling off unprofitable altcoin positions, crypto exchange-traded funds (ETFs), and other high-risk assets. CyrilXBT noted that this pressure would likely dissipate as the calendar turns to the new year. Liquidity Lag And Exhausted Demand The expert further highlighted that liquidity tends to work on a lagging basis. Although the Federal Reserve (Fed) has started to inject liquidity back into the system, markets typically do not react immediately. Historically, improvements in liquidity occur first, followed by Bitcoin stabilizing, with altcoins lagging behind. Currently, the market remains in the lag phase, not yet experiencing the anticipated breakout. With low volatility, stagnant Bitcoin prices, and declining altcoins, CyrilXBT asserts that it evokes memories of previous cycles, such as the early 2019 and early 2023 recoveries. Related Reading: Ethereum Bearish Structure Meets Bullish Supply Signal – What Happens Next Overall, the drop in the altcoin market can be attributed to several interconnected factors: rising Bitcoin dominance, peak tax-loss selling, thin liquidity, exhausted demand, and the delayed effects of macro liquidity. Instead of a capitulation scenario, the expert suggests that this moment appears to represent compression—a phase that frequently precedes significant recoveries. Featured image from DALL-E, chart from TradingView.com
As the Bitcoin (BTC) price settles below the critical $90,000 support level, discussions about the potential onset of a new bear market are growing among experts and market analysts. The market’s leading cryptocurrency, currently trading at approximately $87,370, has experienced a decline of over 30% from its all-time high of more than $126,000, drawing comparisons to past market behaviors, particularly those witnessed in December 2021. Fractal Patterns Resurface Notably, on December 24, 2021, Bitcoin was valued at around $51,700, marking a local peak before it plummeted to $34,000 by January 24, 2022. This decline represented a significant 34% drop within just one month. Related Reading: This Friday’s Bitcoin Options Expiry Could Shake Up The Market: What To Look Out For An expert analyzing the current market dynamics has applied a fractal model derived from that previous sell-off to Bitcoin’s present price. According to this analysis, there is a potential trajectory that could see the cryptocurrency move toward the $70,000 mark in the coming days. The expert argues that given the current price action and current market conditions, this scenario is plausible and suggests an additional decline of about 20% for the Bitcoin price if a similar pattern unfolds. However, without clear direction, the question remains whether this situation will unfold into a recovery above key price levels or into an extended bear market heading into the first quarter of 2026. As such, perspectives among analysts vary widely. Expert Predicts ‘Bitcoin Supercycle’ Ahead CryptoKaleo, another figure on social media platform X (formerly Twitter), posits that the current market mirrors conditions seen in the fall of 2020. Both scenarios involved Bitcoin losing a critical support level that had been established in the wake of significant market corrections, leading to a “mini-bart” scenario where the price retraced nearly all of its previous gains, eventually finding a new base. During the recovery phase after the COVID-19 crash in 2020, traditional stocks, particularly in the tech sector, significantly outperformed Bitcoin, leading many to claim that the leading cryptocurrency was fading into irrelevance. Related Reading: These Five Key Drivers Could Boost XRP To $5 By 2026, Claims Top Analyst Today, as equities frequently reach new all-time highs, a similar narrative is emerging, with some asserting that Bitcoin has become stagnant and altcoins are lacking momentum. Despite this, CryptoKaleo remains optimistic, suggesting that the present situation does not conform to the typical four-year market cycle for the cryptocurrency. Instead of a prolonged bearish phase, he predicts that when Bitcoin reaches new all-time highs in 2026, it will usher in an exciting “supercycle,” characterized by prolonged upward trends, robust altcoin seasons, and a resurgence of retail interest in mainstream cryptocurrencies. Featured image from DALL-E, chart from TradingView.com
SBI Ripple Asia has signed an agreement with Doppler Finance to explore new financial products built on the XRP Ledger. The two companies will look into XRP-based yield options and the tokenization of real-world assets such as traditional financial products. The agreement, signed as a memorandum of understanding, is the first time SBI Ripple Asia …
Christmas week is here, and Bitcoin investors are waiting to see if the market delivers a late push before the year ends. With market fear falling and liquidity slowly improving, some analysts say Bitcoin could see a short-term bounce, even though the overall market remains mixed. Low Market Fear Could Help Bitcoin One positive sign …
As 2025 comes to an end, the crypto market looks very different from last year. In late 2024, Bitcoin and altcoins were rallying strongly, thanks to President Donald Trump and expectations of easier regulations. This year, however, the mood is much calmer. Bitcoin is trading below its all-time high, and many altcoins, including XRP, have …
As investors look ahead to 2026, many are asking a basic question: Which altcoins have the best chance to perform well over the next cycle? One expert has grouped the strongest opportunities into four big narratives. Each category includes two altcoins, making a total of eight coins to watch for 2026. Compliance-Ready Crypto Projects Regulation …
Bitcoin is struggling to regain momentum this Christmas, trading below the $90,000 mark despite the festive mood in the market. There are hopes for a holiday rally amid the bearish price action. At the time of writing, Bitcoin closed near $86,935, slightly lower after failing to hold recent gains. Thin holiday trading volumes, ETF outflows, …
Despite tighter liquidity and a more selective market environment, HashKey Capital has just made an interesting move. The Asia-based digital asset investment firm has announced the first close of its fourth fund at $250 million. Here’s everything to know. HashKey Capital Raises $250M The fund, officially named HashKey Fintech Multi-Strategy Fund IV, exceeded expectations at …
The crypto market has come under pressure today, with Bitcoin, Ethereum, and major altcoins like XRP experiencing bearish pressure. While the price action may look concerning, this decline is not being driven by panic or bad news. Instead, market data points to a technical reset driven by leverage, liquidity conditions, and short-term positioning. The pullback …
According to Grayscale Investments, the global push to tokenize real-world assets is only beginning, and Chainlink could become one of the key technologies driving that expansion. In an interview on the Thinking Crypto podcast, Grayscale Head of Research Zach Pandl said that just a small portion of global assets are currently on blockchain networks, but …
As the year comes to a close, Bitcoin (BTC) is approaching a pivotal moment that could lead to increased market volatility. This Friday, December 26, more than $23 billion worth of Bitcoin options are set to expire, marking the largest options expiration in the cryptocurrency’s history. How $23 Billion Roll-Off May Impact Bitcoin Prices Market expert NoLimit took to social media platform X (formerly Twitter) to elucidate the significance of this event. Understanding options expiration is crucial to grasping its potential impact on the market. In the expert’s words, options are leveraged bets on the future price of Bitcoin: call options anticipate an increase in price, while put options anticipate a decrease. When these options expire, one of two things happens: either they expire worthless, or they trigger hedging actions that necessitate buying or selling in the spot market. Related Reading: XRP Price Forecasts For 2026 Unveiled By AI Simulation: Should Investors Remain Bullish? With a massive $23.6 billion worth of Bitcoin options rolling off at once, a substantial amount of risk is being removed from dealer books in a single day. This clearing of positions is a primary driver of volatility. For perspective, previous year-end expiries have been significantly smaller: around $6 billion in 2021, $2.4 billion in 2022, $11 billion in 2023, and $19.8 billion in 2024. The sheer scale of this upcoming expiry highlights a shift in the market landscape, indicating that it is now largely shaped by institutional investors rather than retail traders. The specificity of this Friday is particularly noteworthy. Dealers have strategically hedged their positions around key Bitcoin price levels, and as the options expiry arrives, these hedges will be unwound. This process could lead to sharp price movements in either direction, especially given the current low-liquidity conditions in the market. The holiday season has resulted in diminished trading volume, which means that individual orders can impact prices more dramatically—potentially leading to violent price swings. Key Price Ranges Adding to the complexity, fellow market analyst MartyParty highlighted that significant gamma exposure is clustered in critical price ranges, particularly between $86,000 and $110,000. Estimates suggest that high gamma—around $238 million or more in notional sensitivity—will expire, amplifying volatility through delta-hedging flows as Friday approaches. The maximum pain point, where Bitcoin option sellers face the greatest loss, is pegged at $96,000. Related Reading: New Crypto Tax Proposal: Bipartisan House Duo Pushes For Stablecoin Safe Harbor Furthermore, analysts from CryptoQuant weighed in on the situation, noting that while downside positioning has eased with the open interest in $85,000 puts declining, there remains a notable presence of $100,000 Bitcoin calls. This suggests a cautious but persistent optimism for a potential “Santa rally,” according to the analysts. The risk reversals also indicate a softening of bearish sentiment as Bitcoin’s spot price stabilizes. At the time of writing, Bitcoin was trading at $87,292, having recorded a loss of 2.5% in the past 24 hours and a 30% gap between the current trading price and the record high. Featured image from DALL-E, chart from TradingView.com
Author Robert Kiyosaki has highlighted a serious warning from legendary investor Warren Buffett, saying an Artificial Intelligence–driven stock market bubble and rising global debt could become the biggest threat investors have ever faced. According to Kiyosaki, Buffett believes the risk is even greater than the dotcom crash. Kiyosaki urged people to listen closely to Buffett’s …
XRP, currently the fifth largest cryptocurrency by market cap, has recently fallen below the crucial $2 mark amid a broader market correction that has dampened investor sentiment since October. However, market analyst Sam Daodu has identified five critical catalysts that could drive the altcoin to new all-time highs of $5 by 2026. Potential Bullish Catalysts For XRP In a detailed report, Daodu emphasized that for XRP to reach $5, multiple specific factors need to work in unison. Each of these catalysts aims to address various barriers that have kept XRP’s price stagnant. At the forefront of Daodu’s analysis is the potential for a BlackRock-backed XRP exchange-traded fund (ETF). Since mid-November 2025, spot XRP ETFs have attracted over $1 billion in cumulative inflows. Should BlackRock move forward with its ETF, estimates suggest that inflows could exceed $2 billion. Related Reading: XRP Price Forecasts For 2026 Unveiled By AI Simulation: Should Investors Remain Bullish? Daodu’s analysis points that such capital influx would not only reshape market demand but would also solidify XRP’s position as the sole cryptocurrency tied to a fully regulated token in the United States, significantly enhancing its case for reaching $5. Next on the list is the evolving significance of Japan within the XRP narrative. Ripple, in collaboration with SBI Holdings, is set to launch RLUSD—Ripple’s USD-backed stablecoin—in Japan by the first quarter of 2026, pending regulatory approval. The use of RLUSD on the XRP Ledger (XRPL) can create substantial demand for XRP as a bridge currency, supporting the case for it to reach $5, even if this impact unfolds gradually over time. From Tokenization To ETFs The third catalyst that Daodu identified is the tokenization of assets. Ripple’s expanded partnership with Archax aims to bring in “hundreds of millions of dollars” in tokenized equity, debt, and funds onto the XRP Ledger by mid-2026. Should the XRP Ledger capture even a modest 5-10% of the tokenized asset settlement market, the demand for XRP would increase significantly, further supporting its goal of reaching $5. In fourth place, macroeconomic policy plays a crucial role in shaping XRP’s upside potential. Anticipated rate cuts by the Federal Reserve (Fed) would likely decrease returns on cash and short-term bonds, traditionally driving capital toward riskier assets that offer growth and liquidity. Related Reading: New Crypto Tax Proposal: Bipartisan House Duo Pushes For Stablecoin Safe Harbor Lastly, recent on-chain data points to a noteworthy change in supply dynamics. Exchange-held XRP has decreased, with 1.35 billion XRP removed from exchanges in less than two months. Balances plummeted from approximately 3.95 billion tokens to about 2.6 billion, with more than a billion leaving in just a short span of three weeks. Such withdrawals are indicative of a behavioral shift among holders, as many are opting to move XRP into long-term storage solutions. Daodu posits that reaching the $5 mark will not stem from a singular headline or moment of exuberance. It will necessitate a convergence of multiple factors, including strong ETF inflows, institutional adoption, and favorable macroeconomic conditions. As of this writing, the altcoin was trading at $1.88, dropping by almost 50% from all-time high levels reached back in July of this year. Featured image from DALL-E, chart from TradingView.com
Bitcoin is still moving in a tight range, but short-term charts show the recent drop may be close to ending. While the market remains volatile, some traders believe selling pressure is starting to ease. Let’s break it down in simple terms. What Just Happened to Bitcoin? After falling earlier, Bitcoin made what many experts call …
Bitcoin, Ethereum and XRP are trading lower today as crypto markets react to strong U.S. economic data and selling pressure from crypto investment funds. For now, BTC is holding near the $87,000 level, ETH is trading below $3,000, and XRP is hovering around $1.88. Dogecoin, Solana and Cardano are also trading lower. U.S. government data …
Crypto research platform Altcoin Buzz has released a side-by-side comparison of two popular altcoins, Bittensor (TAO) and Hedera Hashgraph (HBAR), aiming to help investors choose just one in a market where capital is limited. The idea behind the comparison is straightforward. With many crypto assets trading at discounted prices, investors often do not have enough …
A growing number of crypto analysts are drawing an interesting comparison between XRP and the early days of the internet. The idea is simple: just as the internet changed how information moves around the world, XRP could be doing the same for money. The comparison was recently discussed by Paul Barron and Apex Crypto Consulting, …
Bybit, one of the world’s largest crypto exchanges, will start phasing out services for Japanese residents in 2026 to align with Japan’s strict regulatory rules. The platform plans gradual account restrictions, including limits on new registrations and trading features, rather than an abrupt shutdown, giving users time to withdraw funds and close positions. The move …
Global crypto markets fell today, with Bitcoin and altcoins trading lower. Bitcoin slipped below $88,000 after briefly moving above $90,000 earlier in the day. Ethereum also dropped back under $3,000, while most large-cap altcoins traded in the red. One of the drivers of the decline is the upcoming expiry of more than $28.5 billion worth …
There’s been a major shift in profitability since the Bitcoin price crashed from $126,000, and altcoins have borne the brunt of it. With major altcoins down between 30% and 80% from their all-time high values, calls for an altcoin season have gone down drastically. This has been reflected in the performance of the Altcoin Season Index, falling to one of the lowest recorded levels in 2025 as the year draws to an end. Altcoin Season Index Says Losses Are The Order Of The Day The Altcoin Season Index Chart on the CoinMarketCap website, which tracks the performance of altcoins against Bitcoin, has now fallen below 20 again. This index collates the performance of the top 100 altcoins in the market, comparing their 90-day performance to that of Bitcoin, in order to pinpoint whether the market is currently experiencing an altcoin season. Related Reading: Bitcoin Price Remains Stuck Inside This Range, But A Breakout Could Follow The index ranks the performance on a scale of 1-100, depending on how many altcoins out of the top 100 are outperforming Bitcoin, and uses that to score the market. At the time of writing, the Altcoin Season Index was sitting at a score of 17, which means only 17 of the top 100 altcoins have seen a better performance than Bitcoin in the last 90 days. With the index’s score sitting this low, it suggests that altcoins are currently in a bear market. Additionally, Ethereum, which is often the altcoin leader when it comes to an alt season, is still underperforming compared to Bitcoin. The second-largest cryptocurrency has recorded a 28.30% decrease in the last 90 days, while Bitcoin is down 21.10% in comparison. How To Know If Altcoins Are In A Bull Run? To know if the altcoin market is experiencing an altcoin season, the index would have to read at a score of 75 or higher. This is when the majority of altcoins are outperforming Bitcoin in a 3-month period, and their combined market cap surpasses that of the leading cryptocurrency. Related Reading: Pundit Shares Why XRP Will Become Expensive And A $1,000 Price Tag Is Possible Scores lower than 75 suggest that the market is yet to enter a full-blown altcoin season, and the lower it goes, the higher the chances that altcoins are experiencing a bear market. However, the higher the Altcoin Season Index score is, nearing 100, the more likely it is that the altcoin market may be experiencing a top. Altcoin seasons are often characterized by rapid increases in price, with 100% rallies on a daily basis being the norm. The last major altcoin season was back in 2021, and while the expectation was that another altcoin season would begin in 2025, this has not been the case. Featured image from Dall.E, chart from TradingView.com
XRP, currently the fifth-largest cryptocurrency in the market, has mirrored the overall performance of digital assets over the past months, experiencing a significant retracement of nearly 50% from its all-time high of $3.65 earlier this year. Amid this volatility, a new artificial intelligence (AI) simulation model has produced price forecasts for the altcoin, offering investors a more detailed outlook for the coming year. XRP Price Predictions Market analyst Sam Daodu recently shared insights from a Monte Carlo simulation that explored XRP’s price trajectory in which 10,000 paths were generated to capture a comprehensive range of potential outcomes. The results offer statistical data such as mean, median, and percentiles, illustrating a probability distribution rather than relying on a single forecast. Daodu reported that the simulation results reveal a spectrum of outcomes for XRP. The mean price across all 10,000 paths stands at approximately $2.78, indicating that, on average, the price is higher than its current levels. Related Reading: Dogecoin Weekly Fractal Hints At A Bigger Move Brewing In contrast, the median price is $1.88, suggesting that half of the estimated outcomes fall below the $2 mark. This disparity between the mean and median highlights the skew in the distribution, where a few high projections inflate the average, while the median reflects where most scenarios likely land. To identify a more probable pricing range, Daodu considered the 25th and 75th percentiles, which represent the central 50% of outcomes. According to the simulation, 25% of scenarios estimate XRP’s price below $1.04, while 75% indicate a price below $3.40. Notably, about 60% of scenarios position XRP’s price between $1.04 and $3.40 by the end of 2026, with an expected median hovering around $1.88. 10% Chance Of Dropping Below $0.59 The analysis also highlights the upper tail of the distribution, where the best-case outcomes sit. The 90th percentile indicates a price of about $5.90, meaning that roughly 10% of scenarios project end-of-year prices above this threshold. The expert asserts that achieving new all-time highs near $6 would require several positive developments, including sustained institutional inflows through exchange-traded funds (ETFs) of over $50 million daily throughout 2026, increased actual usage of XRP for cross-border payments by banks, and persistent regulatory clarity without major setbacks. Related Reading: Bitcoin Price Remains Stuck Inside This Range, But A Breakout Could Follow On the other hand, the simulation doesn’t shy away from discussing downside risks. The lower 10% of outcomes reveal a potential drop below $0.59, suggesting a worrying 10% probability that XRP could lose more than 70% of its current value by 2026. Factors contributing to this bearish outlook could include regulatory setbacks, such as tougher restrictions on cryptocurrency custody or complications arising from recent settlements with the US Securities and Exchange Commission (SEC). Additionally, Daodu believes that decreased investor confidence in the altcoin resulting from unmet expectations related to XRP’s utility adoption could further depress prices. According to CoinGecko data, XRP is trading within the range expected to last till next year at $1.90, with a 2% drop in the 24-hour period. Featured image from DALL-E, chart from TradingView.com
In the wake of a significant shift in crypto regulation spurred by the new White House administration under President Donald Trump, lawmakers are working on a fresh tax framework aimed at providing clarity and a safe harbor for certain transactions involving stablecoins. Proposed Crypto Tax Framework Representatives Max Miller from Ohio and Steven Horsford from Nevada have drafted a preliminary proposal that seeks to align the tax treatment of cryptocurrencies with that of traditional securities. According to a recent report by Bloomberg, the draft consists of a blend of policy objectives and bill language not yet formally approved. Related Reading: Pundit Shares Why XRP Will Become Expensive And A $1,000 Price Tag Is Possible One of the key features of this draft legislation is its aim to exempt capital gains tax for transactions involving regulated stablecoins. Specifically, the proposal proposes to shield transactions that consistently maintain a value between $0.99 and $1.01 from taxation. However, this exemption is limited to transactions under $200, and the final text may modify which tokens will qualify for this safe harbor, as advised by aides to both congressmen. The proposal also attempts to establish safe harbors for rewards earned through activities like staking, which involves verifying blockchain transactions. Representative Miller emphasized that “America’s tax code has failed to keep pace with modern financial technology.” He described the bipartisan bill as a means to inject clarity, fairness, and common sense into the taxation of digital assets. The proposed draft also addresses the taxation of rewards earned through staking and mining cryptocurrencies, which involves verifying transactions within blockchain networks. Aligning Digital Assets With Securities Tax Regime Under guidance from the Internal Revenue Service (IRS) issued during the Biden administration, rewards obtained from staking are taxed at the time of receipt. Republican lawmakers have voiced concerns regarding this approach, arguing that it taxes assets before owners realize a gain. Conversely, Democrats maintain that these rewards should be classified as compensation and taxed upon receipt. To navigate this divide, Miller and Horsford aim to find a compromise, allowing taxpayers to defer tax on rewards for up to five years. After this period, the rewards would be taxed as income based on their fair market value. Pro-crypto Senator Cynthia Lummis, who recently announced that she will not be running for re-election next year, had previously introduced crypto tax legislation that would leave such rewards untaxed until they are sold. This legislation would align more closely with industry preferences. Related Reading: Saylor Sparks Bitcoin Speculation With ‘Green Dots’ Signal Additionally, the draft aims to bring digital assets under the same tax regime that governs securities and, in some cases, commodities transactions. It proposes to include cryptocurrencies in capital gains tax exemptions for foreign investors trading securities through US-based intermediaries like brokers or exchanges. Furthermore, the plan would permit cryptocurrency traders to utilize mark-to-market accounting, allowing them to recognize unrealized gains and losses based on fair market value at the end of each year. The proposed legislation also seeks to impose restrictions on deducting losses from wash trades for digital assets and “close existing loopholes” that facilitate transactions designed to lock in cryptocurrency gains while postponing the associated tax liability. Featured image from DALL-E, chart from TradingView.com
The International Monetary Fund (IMF) has praised El Salvador for its continued economic growth. The IMF has been working closely with President Nayib Bukele in facilitating the Extended Fund Facility (EFF) program, which was approved earlier this year for $1.4 billion. IMF Praises El Salvador for its Economic Growth According to the IMF, El Salvador’s …
Newly confirmed Commodity Futures Trading Commission Chairman Michael Selig said on Monday that Congress is close to passing long-awaited legislation to set rules for U.S. cryptocurrency markets, a move that could soon reach President Donald Trump’s desk. Speaking after his confirmation as the CFTC’s 16th chairman, Selig said lawmakers were “poised” to advance a digital …
A popular crypto analyst from Altcoin Daily has shared what he calls his worst-case scenario for Bitcoin in 2026. In a recent video, the analyst explained that while he still sees strong long-term potential for Bitcoin, current market conditions mean investors should also consider a more bearish outcome. What His Bear Case Looks Like The …
Bitcoin surged sharply today, briefly touching the $90,000 level before pulling back, leaving everyone questioning what caused the sudden move. According to market data, Bitcoin climbed from around $87,700 to a high near $90,500 within hours, despite no major economic news, regulatory update, or company announcement tied to the rally. Large Buyers Enter a Thin …