US Regulatory Crackdown Targets Cryptocurrency

DAILY MARKET OVERVIEW
Crypto in Trouble?

Welcome Crypto Enthusiasts to Thursday's Report. Today, the market is in the red due to several factors. Let's explore what's behind this downturn.

ETFs Performance

ETF inflows are tapering off, with Blackrock experiencing its first day of outflows today, ending its streak of 71 consecutive days of BTC inflows.

Pressures From the US

The U.S. government is intensifying its crackdown on crypto. Today, they arrested the developers of the Bitcoin Samurai wallet, known for facilitating private Bitcoin transactions.

In addition to this privacy crackdown, the U.S. President is pushing for a new law that would require investors and traders to pay taxes on unrealized gains.

This means if you've bought Bitcoin and its price rises without selling, you'd owe taxes on the gains you haven't realized yet.

Such a move seems unreasonable and could have a detrimental impact on the entire crypto market if implemented.

US GDP Bellow Expectations

US GDP has crashed to 1.6% compared to expected 2.5%. This news has caused further decline in the crypto market.

Altcoins

Most altcoins are currently struggling, but there's a glimmer of hope for Ethereum and Pepe, as they've both been outperforming Bitcoin recently.

Overall, today's news has been largely negative. Stay tuned for further developments and buckle up for the ride ahead.

TWITTER SENTIMENT
Current Twitter Sentiment

The mood surrounding Twitter has taken a hit lately due to the unfavorable developments in the crypto world.

Themes like Memes & AI continue to dominate the conversation and seem poised for long-term success.

Twitter traders suggest that Ethereum needs to start surpassing Bitcoin, and there are already signs pointing in that direction.

Today's on-chain analysis reveals an intriguing detail: Justin Sun, the founder of Tron, has bought $67.5 million worth of ETH.

Could this be the bottom for the ETH? 👀 

NEWS OVERVIEW
Recent Crypto News

• Bitcoin Price Dips Below $64,000 As Market Faces $209 Million In Liquidations

• Bitcoin ETFs Experience $120 Million Outflows; BlackRock’s IBit Ends 71-Day Inflow Streak

• Stablecoins Backed By US Government Debt More Influential Than ETF Inflows, Analysts Argue

• Morgan Stanley May Soon Allow Brokers To Pitch Bitcoin ETFs To Customers
  

YOUTUBE INFLUENCER SUMMARY
Ivan On Tech - BITCOIN: EMERGENCY FOR ALL HOLDERS! (25.04.2024 Summary)

In his latest stream, Ivan shares that some concerning developments are happening in the United States that could potentially impact Bitcoin holders and the crypto market.

Here's a summary of what we can expect:

• Unrealized Capital Gains Tax: The Biden administration is proposing to tax unrealized capital gains at 25% annually. This means that even if you haven't sold your Bitcoin or other cryptocurrencies, you would be taxed on the potential gains each year. Ivan warns that this could lead to significant sell-off pressure as people would be forced to sell a portion of their holdings to pay the tax.

• Increased Capital Gains Tax: In addition to the unrealized gains tax, Biden is also proposing to increase the capital gains tax rate to 44% for high-income individuals. This would make it even more expensive to realize gains from cryptocurrency investments.

• Crackdown on Privacy Protocols: The arrest of developers behind the Samurai Wallet, a Bitcoin privacy tool, signals a broader crackdown on privacy protocols by the government. Ivan suggests that developers of such protocols could be at risk of legal action, which could stifle innovation in this area.

• Mass Surveillance: Ivan highlights concerns about the IRS using AI to access bank accounts of American citizens without proper legal oversight, leading to potential violations of privacy and civil liberties.

Overall, Ivan paints a grim picture of an increasingly hostile environment for cryptocurrency holders and developers in the United States.

Josh Olszewicz - Alt Coins: Trendless Chop (25.04.2024 Summary)

The crypto market, especially altcoins, has been experiencing a prolonged period of trendless choppiness, according to Josh's analysis.

Bitcoin, which often dictates the direction of the altcoin market, has lost its bullish momentum and is currently in a neutral zone, hovering above the cloud (a technical analysis indicator). This lack of a clear trend in Bitcoin has translated into a lackluster performance for most altcoins.

• Josh emphasizes that the current market conditions don't present compelling reasons to invest in altcoins. He advises against chasing the occasional pumps or trying to catch up on missed gains, as it's essentially "squeezing blood from a stone." Most altcoin charts exhibit neutral or bearish trends, and the overall market cap of altcoins (excluding stablecoins) remains bearish against Bitcoin.

However, Josh highlights a few exceptions, such as Near (NEAR), which shows promising signs of a potential trend reversal against Bitcoin. He suggests keeping an eye on projects like NEAR that demonstrate strong technicals and the possibility of breaking out from the current stagnation.

• Looking ahead, Josh believes that the altcoin market could see a resurgence in the fourth quarter of this year, following the Bitcoin halving event. Historically, altcoins have experienced a late-cycle rotation against Bitcoin several months after a halving, although the timing can be tricky to pinpoint.

Josh’s Plan

In preparation for this potential altcoin revival, Josh is brainstorming a "meme coin portfolio" consisting of 10 to 20 carefully selected altcoins with historical chart data. The idea is to dollar-cost average into these coins over the next 30 weeks, capturing potential lows and benefiting from improving market conditions, such as lower interest rates and increased liquidity.

He cautions against impulsive trades and advises waiting for clear bullish signals before actively trading altcoins.

Overall, Josh's analysis paints a picture of a currently subdued altcoin market, but with the potential for a resurgence on the horizon, especially for projects with solid fundamentals and favorable technical setups.

CRYPTO MEMES