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The US Treasury Department will release guidelines on crypto tax rules to ease market concerns that a vague definition of brokers in the previous Senate-passed infrastructure bill could cause problems, according to Bloomberg. The guidelines will focus on determining whether a crypto company provides brokerage services. In addition, developers, miners, hardware and software providers are not required to comply with IRS(Internal Revenue Service) reporting requirements in the proposed infrastructure bill. The guidelines are expected to be released as early as next week.
A week of optimism in the crypto market edges BTC closer toward the $50,000 price target. Bitcoin just jumped above $47,000. While Bitcoin has seen an increased amount of activity in the market, trading volumes globally are much lower where they were the last time the price was at $47,000. New investors remain very cautious since they had a taste of the crypto market’s volatility after the sell-off in May witnessed BTC lose 50% in a week. As BTC manages to hold above the $47,000 handle, it is very likely to break the heavy resistance ahead at the psychological $50,000 zone. Meanwhile, avoiding a fall back through the first major resistance level at $45,900 will be vital for the bulls.