- Bears are at the driving wheel again, taking prices lower.
- TRON and Ethereum are the biggest losers out of top-20.
Cryptocurrency market is falling again with Bitcoin and all major alt coins back on the red territory. The total capitalization of digital assets in circulation slipped from $124B to $121.4B on Wednesday. It seems that the short-term recovery is over. The market resumed the downside amid the lack of fresh, positive drivers.
Bitcoin is changing hands at $3.600 handle, down 1.5% since this time on Tuesday. The largest digital asset is trapped within a bearish trend, while failure to pass through critical resistance levels increases the downside pressure. Speculations about Russian plans to buy Bitcoins worth of $10B were not officially confirmed; thus the positive effect from the proposal faded away.
Ethereum sits under $122.00 resistance, rangebound during Asian hours and down over 5% on a day-over-day basis. The third largest coin with a market value of $12.7 may be vulnerable to losses due to Constantinople delay.
Ripple’s XRP is pretty stable at $0.3288. The coin is unchanged since the start of the day and down 1.5% d/d. XRP’s price development depends on overall cryptocurrency market sentiments, though it has been less volatile than other major altcoins recently.
TRON (TRX) is one of the biggest losers. The coin has lost nearly 5% in recent 24 hours to trade at $0.0244 by the time of writing. A scandal around TRON Accelerator contest is gaining traction and creating additional downside pressure for the coin.
Cryptocurrencies price prediction: Bitcoin, Ethereum & Dash – Asian Wrap 26 Feb
Bitcoin Price Analysis: BTC/USD could be heading for a deeper correction
Bitcoin’s price action has looked dire on Tuesday. The market has moved away from the highs seen on February 13th. On the Tuesday night close, if the market closes below 9,227 then we could be headed toward the 8,500 area marked on the chart.
Ethereum Price Analysis: ETH/USD bears drop price below SMA 20
ETH/USD dropped from $265.80 to $248 this Tuesday as the price continued to trend in a downward channel formation. In the process, the bears were able to conquer the critical support level at the SMA 20 curve. The 20-day Bollinger jaw has narrowed considerably to show decreasing price volatility.
Dash Price Analysis: Heavy bearish action sees DASH/USD drop below the $100-level
DASH/USD had a significantly bearish Tuesday where the price dropped from $103.70 to $95.58. The price is presently consolidating in a triangle formation and has found support on the downward trending line and is trading for $96.50.
Cryptocurrencies price prediction: Bitcoin, Ripple & Bitcoin Cash – Asian Wrap 25 Feb
Bitcoin Price Prediction: After major dip from the $10,000 level, BTC/USD tries to consolidate above $9,600
BTC/USD bears retained control of the market as the price dropped from $9,662 to $9,592.80. This follows a heavily bearish Monday, where the price plummetted from $9,971.45, following a brief flirtation with the $10,000-level.
Ripple Price Analysis: XRP/USD bears take control as price consolidates above $0.26
XRP/USD bears continued to make their presence felt as the price dropped from $0.271 to $0.2675. This follows a heavily bearish Monday where XRP/USD plummetted from $0.284 to $0.271. The price is trending in a downward channel formation, while SMA 20 acts as immediate market resistance.
Bitcoin Cash Price Analysis: BCH/USD leg to $400 cut short at $380
Bitcoin Cash losses are in tandem with the rest of the cryptocurrencies. For instance, Bitcoin is trading under $9,600 after the rejection at levels close to $10,000. Ethereum and Ripple are also languishing in selling pressure.
New Zealand Plans to Drop ‘Unfavorable’ Sales Tax Treatment of Cryptocurrencies
New Zealand’s tax authority is considering changes to its treatment of cryptocurrencies that would drop the current and controversial application of goods and services tax (GST).
The current regime sees bitcoin and other digital currencies as property, with normal rules applying. That means crypto is liable for 15 percent GST when changing hands within the country as part of a business’s operations and potentially throws up a “double taxation” problem when income tax is later applied.
Calling the situation “unfavorable,” the New Zealand Inland Revenue Department (IRD) has now suggested doing away with the GST liability for cryptocurrencies in many cases, but keeping the treatment for income tax.
In a policy issues paper made public on Monday, the IRD states:
“Because of their innovative nature, [cryptocurrencies] will often also have different features to … other investment products. This means that some existing tax rules can be difficult to apply, involve very high compliance costs or may provide policy outcomes for some crypto-assets that lead to over-taxation compared to other alternative investment products.”
The overall aim of any changes would be that cryptocurrencies should have a similar treatment to other investment products or asset classes that are “close substitutes” for the digital asset.
An issue being considered by the IRD is whether different types of token should have different tax treatments depending on how they are used. One way forward is that tokens used like currency or shares would likely not be liable to GST, while other types might see the sales tax applied.
“An advantage of this approach is that it should provide a neutral tax treatment for those crypto-assets which are close substitutes for existing financial products such as currency or shares,” the IRD says.
The tax department suggests it might still treat some tokens differently, for instance, if a token is considered to be a share “but if it does not provide an interest in a foreign company or partnership, it would still be taxed very differently to other foreign equity investments.”
Yet with thousands of tokens now available offering different use cases and features, the IRD says there may be “practical limitations” to their potential classification for tax purposes.
As such, a different approach being considered is to usher in more general changes to tax rules that are seen as throwing up “the most significant policy issues when applied to crypto-assets.”
“There appears to be a case to exclude most types of crypto-asset from the GST and financial arrangement rules by developing a broad definition of crypto-assets for this purpose,” says the IRD.
Whatever the solution, Inland Revenue recognizes that change is needed. The department says, “The current GST rules provide an uncertain and variable GST treatment making, using or investing in crypto-assets less attractive than using money or investing in other financial assets.”
Parties with an interest in the issue have until April 9 to offer their opinions on the best solution.
Australia, which had previously also imposed GST on some crypto transactions, ended the policy in October 2017. Singapore proposed the same policy change last summer.