The bitcoin rate this morning set another local maximum, this time close to the $ 48,000 level.
Before that, the cryptocurrency managed to form a channel with the upper border below $ 46,800, the exit from which was marked by a sharp movement against the background of liquidation of short positions and triggering of stop orders of traders who used the reduced market volatility to leisurely extract profits.
For example, on the BitMEX exchange with a rate of $ 47,417, a position with a volume of over $ 7 million was liquidated.
Analysts at Santiment note that the supply of bitcoin on crypto exchanges has dropped significantly over the past two weeks, and this remains an “encouraging sign.”
“As traders are putting more and more coins into cold wallets, this hodling mentality reduces the risks of massive sell-offs in the future,” they add.
Avi Felman, portfolio manager at Blocktower, believes Bitcoin may face a massive move:
“Big wallets continue to accumulate, stock balances remain low and profitability levels healthy. The recent sell-off has been slow, and volatility is more likely to rise than to fall. Higher lows are noted as the rise progresses. ”
Today’s growth is taking place against a positive news background. So, ZeroHedge cites the following quote from JP Morgan in relation to Bitcoin and Ether:
“Commodity trading consultants are forced out of short positions and start building up long ones.”
Bloomberg this evening reported that the US authorities are preparing to clarify new tax reporting requirements, which have caused concern for many participants in the cryptocurrency industry. According to the source, the Ministry of Finance intends to make a statement that these requirements will be imposed only on companies that it considers itself to be brokers. This will remove from regulation miners, developers and other industry representatives who are not brokers as such, but could be recognized by them under the new legislation.
At the same time, Bloomberg notes that decisions will be made not on the basis of self-identification of companies, but according to their actual activities. An earlier attempt by senators to change the text of the document failed, and in the future they most likely will not have a second chance, since this would have required an additional revision of the entire infrastructure bill, the provisions of which go far beyond the regulation of the cryptocurrency industry.
In addition, tech giant Intel announced on Friday that it owns a small stake in the American cryptocurrency exchange Coinbase. As of June 30, he owned 3,014 Coinbase shares with a total value of $ 788,000. The current market capitalization of the exchange is $ 54.51 billion.