Bitcoin Price Prediction: Hits $40,000 Amid ETF Moves & IRS Update
In a market teeming with activity, Bitcoin’s latest surge to $40,000, marking a nearly 1% increase on Thursday, has investors and analysts revisiting their Bitcoin price predictions. This uptick comes amidst a flurry of significant developments: Chinese investors, spurred by stock market dynamics, are increasingly engaging with Bitcoin despite its prohibited status in the country.
In a parallel development, the IRS has revised the tax form questions concerning digital assets, signaling a shift towards greater regulatory clarity. Further adding to the ecosystem’s transparency, Arkham has revealed the onchain addresses associated with four major Bitcoin ETFs, a move that could potentially reshape investor sentiment and market dynamics.
Amidst the nation’s economic recession, more and more Chinese investors are looking to cryptocurrencies, particularly Bitcoin, as a safe haven. Investors are accessing cryptocurrencies through unconventional means and operating in a regulatory gray area as a result of the stock and real estate markets’ downturn. People are trading on sites like OKX and Binance despite China’s prohibition on cryptocurrency trading and stringent money movement regulations.
Taking advantage of Hong Kong’s more welcoming climate for cryptocurrencies, the Hong Kong branches of significant Chinese financial institutions, such as Bank of China and China Asset Management, are investigating ventures linked to cryptocurrencies.
Analysis:Bruised by stock market, Chinese rush into banned bitcoin https://t.co/Qcfje82xga pic.twitter.com/zPzTJXHiIa
— CNA (@ChannelNewsAsia) January 25, 2024
Due to economic uncertainty, more Chinese investors are turning to digital assets like Bitcoin, seeing its potential in the face of
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