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Bitcoin Dominance Plummets while Altcoins Outperform

At the time of press, Bitcoin was down about 12% against the USD since its weekly open. This also marks a 25% drop from its all-time high of $42,000 on Jan. 8, 2021. Bitcoin’s market cap is now around $592 billion — nearly $200 billion below those highs. And while the rest of the market … Continued

The post Bitcoin Dominance Plummets while Altcoins Outperform appeared first on BeInCrypto.

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After grabbing the fintech world’s attention with an out-of-control rise to record prices, Bitcoin has been getting pounded this past week. 92% of altcoins have outperformed Bitcoin on the week.

At the time of press, Bitcoin was down about 12% against the USD since its weekly open. This also marks a 25% drop from its all-time high of $42,000 on Jan. 8, 2021. Bitcoin’s market cap is now around $592 billion — nearly $200 billion below those highs.

And while the rest of the market was dragged down a bit with BTC, altcoins were holding strong. 92% of them, according to Messari data, outperformed Bitcoin over the last 7 days ending on Jan 20, 2021.

Bitcoin Gets a Little too Hot

Bitcoin breaking $20,000 was not entirely unexpected, but the run to $40,000 was so rapid that many were predicting a cool-off.

Likewise, despite the fact that Ethereum was the main driver behind the DeFi craze, its pump had lagged a couple of weeks behind Bitcoin’s. So money likely shifted from Bitcoin to altcoins, as traders were looking to capitalize on more gains and focus on stacking satoshis.

Perhaps most telling is the Bitcoin dominance chart. Bitcoin’s dominance of the crypto market reached 72% in early January, the highest levels in a year. Since then, dominance has been in a downward trend and is now around 65%.

Researcher’s at LongHash, a company that analyzes crypto data, noticed how well altcoins were actually doing.

According to LongHash, the top 69 altcoins with trading volumes over $100 million had a great week. Only 33% saw their price go down in USD value. On the upside, 46 of those tokens saw prices grow over 10% in that week (those prices have since slipped).

In a bullish comment, it claimed that Ethereum’s market cap could quadruple if it kept up with the rate of growth that Bitcoin has seen.

A New President, a New Precedent

For a number of reasons, analysts were predicting that U.S. President Joe Biden’s administration would be good in the fight against the pandemic and for financial stability.

Though some of his team is optimistic about cryptocurrencies, the stock market pumping to an all-time-highs on inauguration day says a lot about what the markets think. It’s possible that money is shifting from crypto into stocks.

Biden’s policies could see a lot of that cash flow back into crypto as investors look at Bitcoin as a hedge against the dollar.

Joe Biden BTC Twitter

A Missed Altseason

Even though altcoins have dropped during the Jan. 21 pullback, there could still be another altseason on the horizon. According to the Altcoin Season Index, Bitcoin’s rise was so dominant that few coins have outperformed it over the past 90 days.

Nonetheless, if institutional investors continue to invest in crypto, they may be looking to dive a little deeper than simply Bitcoin. Plus, with sectors like DeFi, active use-cases may be stronger than ever.

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Harry Leeds is a writer, editor, and journalist who spent much time in the former USSR covering food, cryptocurrencies, and healthcare. He also translates poetry and edits the literary magazine mumbermag.me.

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Source: https://beincrypto.com/bitcoin-dominance-plummets-altcoins-outperform/

Blockchain

Korean Government To Levy Taxes On Bitcoin Capital Gains Starting 2022

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As cryptocurrencies continue to pick up steam and encompass the features of regular asset classes, governments have likewise imposed taxes on capital gains from digital currency. South Korea is the latest country to adopt this initiative. Its Ministry of Economy and Finance said it will levy taxes on cryptocurrency profits from next year.

The South Korean government is going ahead with its proposal to tax cryptocurrency returns after several reconsiderations. A local news agency, Yonhap reported in December that the National Assembly’s Planning and Finance committee deliberated on the amendment of income tax laws and individual consumption tax laws.

As part of the income regulatory initiative, cryptocurrency traders and investors are mandated to pay 20 percent if they earn more than 2.5 million won (almost $2300 at the present exchange rate) from bitcoin and other cryptocurrencies. Gains below 2.5 million won will not be taxed. The law was initially scheduled to be implemented in October this year, but it will now be enacted in 2022.

According to the new report, bitcoin gains will be filed under ‘other income.’ Cryptocurrency investors will report their gains through an income statement and will pay taxes in May every year.

A turn of proceedings saw South Korea become a burgeoning cryptocurrency market. In 2017, the government announced that it would strictly regulate cryptocurrency transactions and even shut down exchanges in the country after Seoul-based exchange, Youbit, was hacked.

Bithumb Tax Saga

This is not the Korean government’s first attempt at bitcoin taxation. Korea’s National Tax Service asked cryptocurrency exchange, Bithumb to pay its foreign customers withholding taxes to the tune of 80 million won in 2019.

There were uncertainties surrounding that. It was unclear whether the cryptocurrency industry was subject to withholding tax. Bithumb filed a complaint to the tax tribunal over what is referred to as a “groundless” tax imposed by the NTS. It also argued that cryptocurrencies were not recognized by South Korean law and should not be taxable.

The industry has evolved since then. Cryptocurrencies are bridging the gap on conventional assets, and emerging laws classify them as taxable properties.

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Source: https://cryptopotato.com/korean-government-to-levy-taxes-on-bitcoin-capital-gains-starting-2022/

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Blockchain

Vice President of Nigeria Tips Cryptocurrencies To Challenge Traditional Banking

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The Nigerian cryptocurrency community was shaken to its core when the country’s apex bank released a circular warning financial institutions to desist from enabling cryptocurrency transactions. The Central Bank made arguments to justify the decision, with several notable figures weighing in on the subject.

Nigeria’s Vice President, Prof. Yemi Osinbajo is the latest to share his view on the ban. In his keynote address at the CBN Bankers’ Committee Economic Summit, Osinbajo tipped digital assets to fiercely challenge traditional and reserve banking in the future.

Calls For Knowledge-Based Actions That Will Prove Beneficial

The ban on cryptocurrencies has continued making the rounds in Nigeria. Several weeks after, it has finally forced reactions from the upper echelon of the government. Vice President Yemi Osinbajo bared his views at a summit organized by the Central Bank earlier today.

He admitted to the disruptive capacity of cryptocurrencies and blockchain technology, stating that they could well displace existing banking systems in the coming years.

He further opined that emerging technologies like blockchain must be adopted strategically, before praising the regulatory bodies for being ‘very articulate’ with their measures. He called for initiatives that will enable people to enjoy the benefits of blockchains and cryptocurrencies while keeping the adverse effects in check.

Prior to Osinbajo’s remarks, CBN Governor, Godwin Emefiele publicly defended the ban, saying that cryptocurrencies were created “out of thin air”. He further described cryptocurrencies as being “used to describe the activities of players in an electronic dark world”

Many Nigerians have taken the Vice President’s comments with a grain of salt. They urged him to use his influence to turn the tides instead.

Waging War Between Cryptocurrencies and Nigerian Banking System

Industry enthusiasts in Nigeria interpreted the CBN ban as a direct attack on cryptocurrencies. Speculations emerged that the apex bank was rattled by the traction gained by the digital assets and the fact that they were gradually displacing conventional banks.

A Nigerian economist shared a shocking statistic that bared the Nigerian Stock Exchange trading volume and how it measured against the trading volume on Binance.

In all of these, it is widely rumored that the adoption of bitcoin in last year’s protest against police brutality was the last straw to break the camel’s back. Activists spearheading the protests started accepting bitcoin donations after the Central Bank issued orders to freeze their bank accounts. The recent ban allegedly signals the central bank’s intention to maintain a stronghold on the country’s monetary system.

Entrepreneur and investor, Victor Asemota believes that banning cryptocurrencies is self-defeating and does not address the deficient banking system. He tweeted :

“I have predicted the demise of traditional banking institutions in Africa for a while now until things accelerated during the pandemic and agent models became prominent. The cost structure of old banking Africa do not make sense. Community banking and cooperatives make more sense. What happened to Nigerian remittances during the pandemic was that people discovered more efficient channels to send money home as bank branches were closed. We now had multiple FX exchanges as people became aware that it was lucrative. Crypto is not the problem, it is banking.”

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Source: https://cryptopotato.com/vice-president-of-nigeria-tips-cryptocurrencies-to-challenge-traditional-banking/

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Stellar, BitTorrent, DigiByte Price Analysis: 28 February

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The cryptocurrency market has had to face increased bearish momentum in the past week and with Bitcoin dropping to the $45k price range, many of the market’s altcoins too have followed BTC and traded lower. At the time of writing, Bitcoin was trading at $44,474 with a 24-hour trading volume of $42.9 billion.

Source: CoinStats

For altcoins like Stellar, DigiByte, and BitTorrent such has been the case and an immediate recovery looks unlikely given the current market conditions.

Stellar [XLM]

Source: XLM/USD, TradingView

Stellar’s price fell by over 15 percent in the past week and currently trades at $0.41. According to CoinMarketCap’s list, the coin has a market capitalization of over $9.3 billion and occupies the 10th spot. The coin’s price has tested the support at $0.37 in the past few days and is now making slight gains towards its immediate resistance at $0.54. If the present support would fail, XLM may even drop down towards the second support at $0.27.

The Bollinger Bands for the coin have contracted and show less volatility in the coin’s price action. The RSI indicator looks bearish at the moment as it heads closer to the oversold zone.

BitTorrent [BTT]

Source: BTT/USD, TradingView

BitTorrent’s price fell by over 28 percent in the past 7 days and is currently valued at $0.0011. The bearish pressure is visible as the coin’s price plummeted by over 8 percent in a day’s time. The coin is currently testing its support level around its current trading price and if this support fails BTT is likely to undo all its recent gains and trade around the $0.0004 price range. There is significant resistance around the $0.0014 range if an uptrend were to occur.

The RSI indicator for the coin is falling steadily as it heads into the oversold zone. Interestingly, the EMA ribbons have settled below the coin’s trading price and are offering support for the coin.

DigiByte [DGB]

Source: DGB/USD, TradingView

DigiByte is currently trading at $0.051 and has a market cap of over $730 million. In the past week, the coin’s price fell by 33.6 percent and currently finds itself close to the support level at $0.049. If the downtrend were to continue there is another support around the $0.035 price level that could help stabilize the coin’s price.

The MACD indicator and the RSI signal increased bearish pressure for DGB. The MACD indicator has undergone a bearish crossover while the RSI continues to move into the oversold zone.


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Source: https://ambcrypto.com/stellar-bittorrent-digibyte-price-analysis-28-february

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