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BTC, ADA, SOL, MATIC, KLAY

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The US core consumer spending index (PCE) rose 0.5% in May, below market estimates of 0.6%. However, year-over-year the PCE index rose to 3.4%, the largest increase since 1991.

While the US Federal Reserve expects temporary inflation, the BofA analysts differ in their assessment. The bank expects US inflation to stay high, in the 2% to 4% range, for the next two to four years, and believes the Fed will hike rates over the next six months, subject to a financial market crash .

Daily view of crypto market data. Source: Coin360

Should inflation continue to rise, investors will likely focus on Bitcoin (BTC) again to hedge their portfolios. A CoinShares report released on June 21 said it was uncertain about inflation for the next five years but believed that “adding bitcoin and other real assets is a prudent move to keep portfolios from the tail risk of spiraling out of control To protect inflation ”.

Although the short-term risk remains, select cryptocurrencies could offer traders short-term trading opportunities. During a bear phase, traders can focus on making profits on a regular basis rather than waiting for windfall rallies. Let’s look at the charts of the top 5 cryptocurrencies that could turn bullish in the short term in the next few days.

BTC / USDT

Bitcoin fell to the support zone of $ 28,000 to $ 31,000 on June 26, but the positive sign is that the bulls bought that decline again. This suggests that buyers are clustering at lower levels.

BTC / USDT daily chart. Source: TradingView

The bulls will now try to push the price above the 20-day exponential moving average ($ 35,148). If they can do that, it suggests that selling pressures may ease. The positive divergence in the Relative Strength Index (RSI) also suggests a possible recovery rally.

A break above the 20-day EMA could open the doors for a move into the stiff overhead resistance zone at $ 40,000 to $ 42,451.67. The 200 day simple moving average ($ 43,505) is just above this zone, so it could be difficult for the bulls to climb above.

This indicates a possible consolidation between $ 28,000 and $ 42,451.67 for the next few days. The longer the price trades in this range, the stronger the next breakout will be. The trend will favor the bears if they can keep the price below $ 28,000.

BTC / USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are trying to make a higher bottom at $ 30,000. The 20-EMA has flattened and the RSI is near the middle, suggesting that sellers are losing control.

If the bulls keep the price above the 20-EMA, the BTC / USDT pair could rise to the 200-SMA. A break above this resistance could attract further buying which could push the price to $ 40,527. That bullish view will be invalidated if the bears pull the price below $ 30,000.

ADA / USDT

Cardano (ADA) rallied from the $ 1 support on June 22nd, suggesting strong accumulation near this level. However, the bulls were unable to push price above the 20-day EMA ($ 1.39) on June 24th and 25th, suggesting the bears are defending the resistance.

ADA / USDT daily chart. Source: TradingView

The gradually falling 20-day EMA and the RSI in negative territory suggest that the bears have the upper hand. The ADA / USDT pair could see a long liquidation if the bears sink and hold the price below $ 1. That could drop the price to $ 0.68 and then to $ 0.40.

Conversely, if the bulls can push price above the 20-day EMA, it suggests that the short-term trend has tipped in favor of the bulls. The pair could then climb to $ 1.60 and then to the stiff overhead resistance at $ 1.94.

ADA / USDT 4 hour chart. Source: TradingView

The moving averages on the 4-hour chart have flattened and the RSI near the middle suggests that selling pressures are easing. If the bulls push the price above $ 1.40, it indicates the possibility of a short-term bottoming out. The pair could then attempt to rebound to $ 1.60 and then $ 1.88.

Contrary to this assumption, this indicates a lack of buyers at higher levels as the price drops from the current level or from $ 1.40 to below $ 1.20. The pair could then fall to the critical $ 1 support.

SOL / USDT

The long tail on Solana’s (SOL) candlestick on June 22nd shows traders are aggressively defending the 200-day SMA (USD 20). However, the relief rally failed to rise above the 20-day EMA ($ 33), suggesting that bears are selling on rallies.

SOL / USDT daily chart. Source: TradingView

Buyers are currently trying to make a higher low at $ 26.65. If they can push and hold the price above the 20-day EMA, the SOL / USDT pair could gain momentum and climb to the downtrend line and then to $ 44.

However, the falling 20-day EMA and the RSI in negative territory suggest that bears will have other plans. They will try to defend the 20-day EMA and bring the price below $ 26.65. If that support breaks, the pair could fall to $ 21.10.

A strong rebound from this support will suggest the bulls pile up on dips. The pair could then consolidate between $ 21.10 and $ 44 over the next few days.

SOL / USDT 4 hour chart. Source: TradingView

The 20 EMA on the 4-hour chart has flattened and the RSI is near the middle, indicating an equilibrium between buyers and sellers. That balance could tilt in the bulls’ favor if they push and hold the price above $ 33.

Such a move could clear the way for a move to the downtrendline and then to $ 42. On the flip side, if the price drops from current levels or $ 33, the bears will attempt to break the support at $ 26.65. In this case, the advantage could tip in favor of the bears.

MATIC / USDT

Polygon (MATIC) has been trading below the 20-day EMA ($ 1.29) for the past few days, but the positive sign is that the bulls will not drop the price to the May 23rd low of $ 0.74 . This indicates a lack of sellers at the current level.

MATIC / USDT daily chart. Source: TradingView

If the bulls regroup and push the price above the downtrend line, it suggests that the correction may be over. The MATIC / USDT pair could then rise to $ 1.71 and later to the psychological resistance at $ 2.

However, the bears may have other plans. The falling 20-day EMA and the negative RSI suggest that sellers have the upper hand. If they pull the price below $ 0.92, the pair could fall to the $ 0.74 to $ 0.68 support zone.

The cops will likely defend this zone aggressively. A strong rally indicates accumulation at lower levels and the bulls could then attempt to push the price above the downtrend line.

MATIC / USDT 4-hour chart. Source: TradingView

The 4 hour chart shows that the bears are aggressively defending the downtrend line. The falling 20-EMA and the negative RSI indicate an advantage for the bears. If they pull the price below $ 1, the pair could drop to $ 0.92.

Conversely, if the price rebounds from $ 1, the bulls will make another attempt to push the price above the downtrend line. If successful, it suggests that the bulls are trying to make a comeback. The pair could gain momentum on a breakout and close above $ 1.25.

Connected: “Absolutely correct” to call Bitcoin the new gold – Mexico’s third richest man

KLAY / USDT

Klaytn (KLAY) has been trading below the 20-day EMA ($ 1.02) for the past few days, but the RSI is showing a positive divergence. This suggests that the sellers may lose control.

KLAY / USDT daily chart. Source: TradingView

If the bulls are pushing and holding price above the 20-day EMA, it is an indication that a trend reversal is possible. However, the bears are unlikely to give up anytime soon. They will try to stop the rebound in the USD 1.24 to 1.29 zone.

If the price is falling from the overhead zone but is not falling below the 20-day EMA, it suggests that the bulls are trying to make a comeback. A break out of the resistance zone could attract buyers who could then challenge the 200-day SMA ($ 1.51).

A breakout and close above the 200-day SMA indicate that the downtrend may be over in the short term. That positive view will be invalidated if the bears pull the price below $ 0.72.

KLAY / USDT 4 hour chart. Source: TradingView

The 4 hour chart shows that the KLAY / USDT pair is trading within a descending channel. The bulls had driven price above the channel and the 200-SMA but were unable to hold the higher levels.

If the bulls push and hold price above the 20-EMA, the pair could try again to move above the channel and the 200-SMA. If so, the pair could start a new uptrend that could hit $ 1.62.

Contrary to this assumption, if the pair breaks below $ 0.86, the decline could extend to $ 0.72.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every step of investing and trading involves risk, so you should do your own research when making a decision.

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The politics of cryptocurrencies and taxation policy: Korean Herald, East Asia News & Top Stories

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SEOUL (THE KOREA HERALD / ASIA NEWS NETWORK) – South Korea has rolled back planned taxation of virtual assets despite strong opposition from tax authorities, raising the question of whether the country is dealing properly with the emerging category of digital investment.

The National Assembly’s Strategy and Finance Committee passed a revision law on Tuesday (November 30) that aims to postpone the taxation of capital gains from trading in cryptocurrencies by one year until 2023.

The delay is to be confirmed at a plenary session of the National Assembly scheduled for Thursday. According to the revised plan, starting January 2023, the government will impose a 20 percent tax on capital gains of more than 2.5 million won ($ 2,900) from transactions in cryptocurrencies.

Local cryptocurrency investors might be relieved to learn about the delayed taxation, but there are a multitude of issues that remain unsolved and potentially explosive.

One such problem is that the decision to postpone taxation of virtual assets is widely viewed as a political gesture to win the hearts of young voters investing in cryptocurrency exchanges in the upcoming presidential election – rather than a decision based on careful political Considerations based.

Lee Jae-myung, the ruling Democratic Party’s presidential candidate, had previously expressed his stance on deferring the taxation of virtual assets in a meeting with young people, highlighting the lack of preparation and the need to give the younger generation more investment opportunities.

Criticism of “populism” is already surfacing in the media and online communities that government and opposition parties have agreed on the revised tax plan because they want to win more votes from their twenties and thirties in the March 9th presidential election.

The rare settlement between the two parties, usually embroiled in bitter political disputes, came after the Treasury Department reiterated its view that taxation should go into effect as planned from January 2022 and preparations had already been made to remove taxes from cryptocurrency to raise investors.

The dispute over the taxation of digital assets, particularly the status of cryptocurrency in relation to financial instruments, has been brewing in line with the rapid growth of blockchain-based startups and exchanges.

But the conflicting positions of legislators and tax authorities on the taxation of cryptocurrencies are sending a confusing signal to investors. Some might use the delay as an opportunity to make it big while investment gains in cryptocurrency trading are temporarily “tax-free” in 2022.

After witnessing the effects of political calculations, cryptocurrency investors could put more pressure on politicians to increase the tax-free allowance from the planned 2.5 million won.

The tax exemption is unfair, as equity and bond investors are expected to tax profits of more than 50 million won from 2023.

Another problem is the controversy surrounding the definitions of cryptocurrency and virtual assets. The government takes a conservative view that cryptocurrencies are “intangible assets” and denies them the full status of real assets. Oddly enough, it seeks to levy taxes on cryptocurrency trading.

The Treasury Department previously warned that cryptocurrency trading is vulnerable to new types of fraud and illegal fundraising. In fact, trading digital tokens is banned in some countries due to their volatility and risks.

Some critics argue that Korean financial regulators have been slow to put in place tough protections for virtual asset investors as they rush to levy taxes on the rapidly changing forms of digital assets.

The recent controversy over taxing the cryptocurrency trade bodes well for public discussions about guidelines for new types of digital investments like NFTs or non-fungible tokens, the blockchain-based collectibles that are taking over the art worlds and making a horde of digital art collectors millionaires overnight.

At present, the Korean tax authorities have different ideas about whether NFTs are taxable. Both the legislature and the tax authorities are called upon to carefully weigh up all the important points of digital assets and tax policy to protect investors.

  • The Korea Herald is a member of The Straits Times media partner Asia News Network, an alliance of 24 news media organizations.
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Diarmuid Pepper: Cryptocurrency Bitcoin doesn’t add up to a better future

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Cryptocurrencies are complex, and Bitcoin requires enormous amounts of energy and computer power to “mine” the coins. Pope Francis has warned of the global inequalities inherent in such developments

“WHAT is the use of a person to gain the whole world but to lose his soul?”

When it comes to Bitcoin, the pre-eminent cryptocurrency, these words of Jesus recorded in Mark 8 have a heightened significance.

It’s not just about losing our soul, but also our common home. The energy consumption it takes to power Bitcoin is truly amazing. The cryptocurrency consumes more electricity than most countries and outperforms Argentina and Holland.

It also uses more than seven times as much electricity as all of Google’s global activities.

This is a trend that is not slowing down, and more energy has been put into powering Bitcoin this year than it was in 2020.

It’s something that caught the Pope. More than six years ago Pope Francis published his second encyclical Laudato Si ‘, in which he criticized wanton consumption and environmental destruction.

During Laudato Si ‘Week in May, he tweeted, “Technologies based on the use of highly polluting fossil fuels must be replaced immediately.”

The reason for the energy intensive nature of Bitcoin is its complex public ledger system. To get rid of middlemen, be they banks or governments, Bitcoin transactions are managed by a network of Bitcoin users around the world.

In the beginning, any humble home computer could easily take part in the review of transactions in this public ledger that it could be eligible for for newly created bitcoins, of which there are 21 million.

But the computing power required has exploded to the point that huge warehouses are storing supercomputers that are constantly running to get more Bitcoin.

The physical waste produced in the process is also increasing. The machines required are becoming more and more complex, older machines are simply unloaded.

One respondent to the Pope’s tweet asked him to be aware of how “people in poor countries use Bitcoin to protect themselves from local inflation”.

But Bitcoin doesn’t protect poor people. People in developing countries will be hardest hit by the climate emergency.

In Laudato Si ‘, Pope Francis warned that “climate change is a global problem with grave consequences”.

“Developed countries should help pay off these debts by significantly reducing their consumption of non-renewable energies and helping poorer countries support sustainable development policies and programs,” he added.

But there is an even more tangible way in which Bitcoin harms the poor as it is a currency that is even more unequal than our main forms of currency.

Around 80 percent of Bitcoin holders are male; Some studies suggest that women make up less than five percent of Bitcoin investors.

Only two percent of Bitcoin holders own 95 percent of the cryptocurrency; more than 70 percent of holders own less than 0.01 bitcoin.

At the beginning of June, El Salvador passed a “Bitcoin Law” that granted the cryptocurrency legal tender status in September.

It’s a move that has marginalized the elderly and poor. Nine in ten El Salvadorans do not have a clear understanding of what Bitcoin is, while eight in ten have little or no confidence in Bitcoin.

Almost 50 percent of the country do not have internet access – essential for cryptocurrencies – and more than 70 percent do not have a bank account.

During the week of Laudato Si, Pope Francis warned that “technologies based on the use of highly polluting fossil fuels must be replaced immediately” – comments referring to developments including the energy-intensive “mining” of cryptocurrencies.

Protests have erupted across the country with protesters setting fire to Bitcoin ATMs and holding up signs saying “No to Bitcoin”.

Pope John Paul II wrote an encyclical in which it was stated that “a stable currency” enables “the conditions for steady and healthy economic growth”. Bitcoin crashed 20 percent the day it was launched in El Salvador.

Bitcoin also makes it difficult to combat human and child sex trafficking. Deciphering the public ledger of Bitcoin transactions is a mammoth task, which is verified by supercomputers, and the evasion methods used by criminals are becoming more sophisticated.

In 2019, payments to Bitcoin and Ethereum (another leading cryptocurrency) valued at nearly £ 700,000 were made to addresses associated with the sale and production of images of child sexual abuse.

That same year, US authorities arrested a South Korean national who ran a website selling material related to child sexual abuse. When people created an account with the website, they were given a unique bitcoin address and over 7,000 bitcoin transactions were made on the website.

In March last year, the US authorities also arrested a Dutch man for the same crime. His website advertised “packages” containing up to 2,000 pictures and videos of child sexual abuse. For these packages he received 187 bitcoin, the value of which was 1.18 million pounds at the time of the arrest.

Neil Walsh is the Head of Cybercrime and Anti-Money Laundering at the UN Office on Drugs and Crime. He says cryptocurrencies like Bitcoin make it “extremely difficult for investigators to track child sexual abuse.”

He added that “babies six months and younger” are sometimes found in abuse material purchased through cryptocurrencies.

Interpol, the International Criminal Police Organization, has also warned that “by focusing on anonymity, cryptocurrencies are exposed to abuse by criminals” such as drug sales, people smuggling and money laundering.

The Church is aware of this. In 2017, the Pontifical Academy of Social Sciences hosted a lecture by the manager of the Bank of Montreal, Joseph Mari, highlighting the role of cryptocurrencies in money laundering and human trafficking.

The Pope has called for a reconsideration of the “relationship between the individual and the economy” as we come out of the pandemic.

Billionaires and mega-corporations own the overwhelming majority of Bitcoin, it is horrific for the environment and enables human trafficking and the proliferation of child sexual abuse material.

Bitcoin shouldn’t play a role in the rethink Pope Francis is seeking.

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Cutting a Banksy Into 10,000 (Digital) Pieces

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In the most recent example of an art market disruption, a prominent former auction manager teamed up with cryptocurrency experts in May to buy the 2005 Banksy painting Love Is in the Air for $ 12.9 million and is now planning to raise $ 10,000 Pieces of it for sale as NFTs. or non-fungible tokens.

The manager, Loic Gouzer, who turned the traditional auction format on its head during his time at Christie’s – specifically selling a Leonardo da Vinci painting worth $ 450.3 million in a contemporary art auction that year 2017 – helped found Particle, a platform that fuses art and technology with the aim of reaching a wider range of potential buyers.

“When I was a kid and looked at auctions and catalogs, I always had the feeling that it was impossible to participate financially and that I was excluded by definition,” Gouzer said in a telephone interview. “Breaking the work down into 10,000 NFTs allows a much wider audience to be part of a collecting experience.

“Of course you can enjoy art when you go to a museum, but the joy of art comes with possession,” he continued. “That’s why people collect.”

If successful, the company could help fuel a burgeoning category of competition in the art market, with consortia of multiple buyers challenging the supremacy of multi-billion dollar collectors at a time when the pandemic has accelerated online commerce. NFTs are growing in popularity, accounting for a third of online sales, or two percent of the total art market, according to the Artprice database.

Last month, thousands of cryptocurrency fans – calling themselves ConstitutionDAO – pooled their money to bid on an original print of the Constitution at Sotheby’s (after raising about $ 40 million, it lost to collector and hedge fund mogul Kenneth C. Griffin, who paid $ 43.2 million). Last March, digital artist Beeple (aka Mike Winkelmann) sold his NFT “Everydays: The First 5,000 Days” for $ 69 million at an online Christie’s auction.

Longtime collectors remain skeptical of NFTs, and art experts say the Particle company is just the latest iteration of a virtual art world that has yet to be proven. “A work of art is a unique item, and collectors who love art want to own the item themselves,” said Megan Fox Kelly, president of the Association of Professional Art Advisors. “The NFT is a separate unit from the object. I think we are just beginning to understand how these NFTs exist as works of art, ”added Kelly. “Right now, they appear to be investment vehicles with potentially very significant returns, and that is what the conversations around them are focusing on.”

Banksy’s physical painting “Love Is in the Air”, which shows a bomb thrower throwing a bouquet of flowers, will be on display at the Institute of Contemporary Art, Miami, from December 3rd during Art Basel Week.

The Banksy was divided into a 100 x 100 grid, resulting in 10,000 unique squares or particles that sell as NFTs for about $ 1,500 each. Each particle represents minority ownership of the painting and comes with a trading card that shows the entire artwork as well as the particle’s location on the painting.

Gouzer said his experience last April when he bought artist Urs Fischer’s first NFT – a unique digital token encrypted with the artist’s signature and individually identified on a blockchain – for about $ 98,000 through his auction App Fair Warning sold, causing it to investigate similar sales. “I noticed that so many people are interested in art but have no opportunity to participate,” says Gouzer.

As a former chairman of post-war and contemporary art at Christie’s, Gouzer started the new company with Shingo Lavine and Adam Lavine, the co-founders of ethos.io, which was recently renamed Voyager, which connects financial institutions to the blockchain. The other founders are Philip Eytan, the co-founder and chairman of Voyager, and Oscar Salazar, the founding chief technology officer and chief architect of Uber.

Particle raised $ 15 million in seed capital, and Gouzer said they would raise more to add to their inventory. The group was encouraged by the recent example of ConstitutionDAO raising the cryptocurrency Ether for its lost bid. (According to Verge, the group is now trying to return the money to the backers and is running into high transaction fees.)

“It showed that people wanted to be part of something bigger,” said Shingo Lavine. “There is an enormous appetite to tap into masterpieces of fine art and expensive relics.”

In doing so, the founders are also responding to the widespread desire for property. “There’s a difference between the person who got and downloaded this picture and the person who heard it and said, ‘It’s mine,'” Shingo said, adding that people at NFT buyers were telling this new narrative accept to own things. “

But legal issues related to piracy and fraud in the NFT market have not been examined in court, which poses some risk. It is also unclear whether other countries will recognize the validity of an NFT sale. “Since there are these marketplaces, third-party providers with their own contracts and currency issues, it is much more complicated from a legal point of view,” says Diana Wierbicki, partner and global head of Art Law at Withersworldwide.

The company set up the Particle Foundation, a non-profit organization that maintains its purchased artwork and visits it for exhibitions. One percent of the purchases go to the foundation, which is supposed to act as a so-called protective shard and ensure that no one can claim the physical painting for themselves. “The work can never be resold,” said Gouzer.

Interested buyers can apply from December 13th and in the meantime can register for the waiting list on Particlecollection.com. The sale of the Banksy units will begin the week of January 10th and will take place on the Avalanche blockchain platform. The Particle Company says it will try to ensure that the units are distributed among different buyers rather than having a single buyer acquire more than one.

“We’re not selling you the picture of the painting,” said Harold Eytan, Particle CEO. “We’re selling you this concept of ownership of a painting, some buying stocks. That is a different collecting experience. “

As for Banksy’s early work, Gouzer said the painting’s rebellious spirit was a fitting metaphor for what Particle itself is trying to do – questioning the status quo.

“It’s a piece for revolution,” said Gouzer. “We’re not trying to change the world here, but we’re trying to reach a new community and compete with some of the greatest collectors in the world.”

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