On-chain situation

Bitcoin bounced back to $ 66,000 yesterday and was looking to break the old spike. The ETH also rose further to create new highs. Many altcoins are also growing.

Not much has changed in the on-chain situation. The percentage of Bitcoin profitably updated at the price of $ 61,000 is more than 94%. BTC’s profitability remains high.

The BTC amount withdrawn is higher than the Bitcoin amount deposited. The overall trend of Bitcoin continues to decline on the stock exchanges.

The funding rate has cooled down and remains positive.

However, the volume of futures orders is still as high as it was on April 4th when BTC was at $ 65,000.

Lately the Coinbase Premium Gap Index has risen, which shows that Coinbase’s price is higher than Binance’s. This is a sign that institutional investors are buying BTC.

BTC’s other on-chain indicators are still pretty calm and not yet. The market can still show slight correction peaks in times of growth. But if BTC continues to hold its current price zone, there will be more opportunities for altcoins to grow.

BTC’s taproot update, which is happening next week, is also attracting attention. This is the first major upgrade to Bitcoin since August 2017, which saw the birth of Segregated Witness (SegWit) and led to the launch of the Lightning Network.

Bitcoin is undergoing a taproot soft fork update that aims to improve the privacy, efficiency and smart contract functions of the network. For transactions or wallet addresses that require multiple signatures (like the roots of a tree), Taproot also implements Schnorr Signature, an algorithm that allows users to combine multiple signatures into a single one for a single transaction (a tree). This reduces the inherent difference between regular and multiple signature transactions.

Previously, each signer for this multi-signature wallet was distributed and recorded on the blockchain, after the Taproot update, the signatures are combined into one signature. Therefore, the blockchain records the source of this signature and displays it, which makes it more secure for component signatures.

Perhaps updating Taproot won’t have much of an impact on the price of BTC. However, it is also an update that is close to the hearts of users as they develop this biggest coin.

US Adopts US $ 1.2 Trillion Aid Package and Broker Law Related to BTC

Thuan’s recently updated $ 1.2 trillion support package has changed. This support package was passed by Congress and signals a historic moment for crypto in the United States. In drafting the bill, the Senators added a provision that changed the Internal Revenue Service’s definition of “broker” to include institutions that deal in crypto assets.

This means that if President Biden signs the law, even centralized cryptocurrency exchanges such as Coinbase or even decentralized exchanges will be considered “brokers” and will be required to report their transactions directly to the IRS (Internal Revenue Service – US Tax Administration). In reality, however, decentralized exchanges do not know the identity of the user, so they cannot control or obtain information to report to the IRS.

Brokers are required to provide customer information including their name and address when a customer is trading over $ 10,000. It is believed that the proposed reporting requirements will allow the government to collect an additional $ 28 billion in taxes through cryptocurrencies.

This adopted regulation currently has no impact on the market price of BTC. However, this law will severely hamper the development of the crypto market in the United States. If the president signs and passes the law, it won’t be until 2024 for that law to be implemented in the US. Therefore, people still have time to make changes using the law attached to the support package.

Senator Lummis, one of Bitcoin’s strongest supporters in the Senate, continues to voice his beliefs. She believes Bitcoin is the only cryptocurrency that will last the longest here.

Aside from BTC, she doesn’t care about coins other than stablecoins. When asked for her opinion on the regulatory state of stablecoins in the industry, Ms. Lummis said that only FDIC-insured banks could stifle innovation in the industry. She also stated that private banks and “private institutions” should be involved in the provision of stablecoins. Because of this, the crypto market in the United States can thrive.

Or the Mayor of New York City, Eric Adams, wants to get paid in bitcoin and support crypto development.

Recently, he also suggested that schools should include cryptocurrency studies in their curricula. Describing cryptocurrencies as a new way to pay for goods and services, Mr Adams even urged local schools to teach students new ways of thinking through blockchain technology and digital assets.