Daily Crypto News 8 October
On Oct. 7, Bitcoin raised new questions about the robustness of its bull run, as experts anticipated a reversal of Wednesday's short squeeze. BTC/USD was hovering at $54,000, according to data from TradingView, after failing to establish support at the $55,000 level. The previous day, Bitcoin had an unexpected spike to high at$55,700, which was followed by significant purchasing pressure. Concerns on Thursday focused on what may wind up being an opposite move lower as financing rates turned positive across exchanges. Funding rates getting too optimistic indicate that the market expects additional upside and that there is substantial value in being long BTC.
Nonetheless, long-term market participants, such as John Bollinger, creator of the well-known Bollinger Bands trading indicator, are already recommending an exit strategy this week. Bollinger bands, which assess an asset's upward and downward volatility, are currently signaling that calmer conditions are on the way. Volatility, on the other hand, increases when the bands close.
According to The Korea Times, South Korean Finance Minister and Deputy Prime Minister Hong Nam-ki stated that his government is going through with its proposal to tax earnings on cryptocurrency trading beginning in 2022. The policy, which will charge a 20% tax on crypto profits of more than ¥2.5 million ($2,125) made in a one-year period, was meant to go into effect on Oct. 1, but it was postponed owing to a lack of taxing infrastructure. According to reports, the ruling Democratic Party of South Korea abandoned a prior plan in September to postpone the taxes policy until 2023.
"Any further delay in the already postponed enforcement will lead to a loss of public faith in government policy and erode legal system stability," Hong warned on Wednesday during a parliamentary audit of the Ministry of Economy and Finance in Seoul, according to the article.
However, NFTs appear to be immune from cryptocurrency taxes for the time being because South Korea does not presently define them as "virtual assets." Meanwhile, cryptocurrency exchanges in South Korea were obliged to register with local authorities by September 24 or face closure.
Non Fungible Tokens, according to Yat Siu, co-founder and chairman of NFT game creator Animoca Brands, offer a new method for culture to be kept in the virtual realm. Siu contended that, while the technology underlying NFTs is new, the urge to "store culture" has existed throughout human history. Siu is a Hong Kong-based software entrepreneur who formerly worked for Atari and created the game firm Outblaze. Animoca Brands was formed in 2014, and its noteworthy NFT initiatives include The Sandbox, F1 Delta Time, and MotoGP Ignition, as well as investments in Dapper Labs, OpenSea, and Axie Infinity.
"Most paintings in the world aren't worth a ton, but like owning culture, the vast majority of people who buy art today or photography don't intend to sell it right away," said the Animoca chairman.
That's not how we approach culture." When asked what advice he would provide to novices to the NFT, Siu advised them to avoid possibilities for quick profiting and instead immerse themselves in the revolutionary utilities enabled by the technology. "Begin by purchasing your first NFT not with the aim of making money for yourself, but just with the desire to learn from it," he said.