Bitcoin once again after renewing its highs at 42125, it dropped to 38700. The correction quickly bought out and for the last 4 hours Bitcoin has been trading in the range of 39600-40600. UPD. While writing the Review, Bitcoin has since dropped to 39200. Total CryptoMarket Capitalization is at 1070 billion and BTC dominance index of 70.1%

Everything was calm and positive on the stock markets yesterday. The S&P 500 rose 0.55% to close at 3824, fresh new highs, the Nasdaq rose 1.03%, and the Dow Jones rose 0.18%. Weak labor market data were ignored by the stock market, but this is becoming the norm lately - markets are growing on data about a weak economy, because it means that more money will be given. Oil rose to 56.25, gold fell by 1849, and the dollar index closed just above 90. The markets are optimistic and risk appetite is there.

💥💣💣💥💣 From calling Bitcoin a fraud to now owning it! Morgan Stanley just filed an SEC form(see attached) declaring they now own 792,627 shares (10.9%) of MicroStrategy. They've increased their position by 360%, adding almost 650,000 shares since Q3 2020. Morgan Stanley now owns 792,627 shares of MicroStrategy, bringing its total ownership in the company best known for holding over $2 billion in bitcoin to 10.9%, according to a filing made with the U.S. Securities and Exchange Commission. Given MicroStrategy's shares are largely tracking the price of bitcoin, which is up more than 40% this year following a 300% gain in 2020, it's likely Morgan Stanley views its investment as a way to benefit from bitcoin's historic run without actually being a HODLer. Microstrategy initially bought 21,454 BTC on August 11 before adding another 16,796 on September 14 to complete this first round of buying. Since then, the listed firm subsequently increased its BTC holdings to 70,470 coins. At the time of writing, the listed company’s BTC holdings were valued at nearly $2.4 billion. I wonder who is fooling who? Source | Coindesk.

With #Bitcoin ATH now above 42K, there was a sell off that led to a correction which was bought out, now we are consolidating between 39-40K.

The dominance index is still above 70%, which indicates a high growth potential for altcoins. If Bitcoin is stably holding in the current trading range, or better yet, fixing above 40K, there is every chance of seeing a local alt season over the weekend.

If Bitcoin does not hold above 39,000, and especially if it goes below 38,000, the alt season is postponed for now. Most of the top has already grown (Ether, Litecoin, ADA, BNB). One could also talk about the end of the market cycle, but a high dominance index suggests that the main money is still in Bitcoin, and there has not yet been an overflow into alts.

The last alt-season, like in January 2018, when any type of scam or shitcoin grew has not been seen in 2021. We will not see a dominance index below 50%. It is not a fact that we will see even below 60%. But the potential of the TOP to grow by 20-30%, with a decrease in dominance to 67-65%, remains.

As always wishing you a blessed weekend ahead, and must always do your own research. This is not traditional investment of financial advice. #Decryptedge

Trust we all doing well this Sunday. Since we dont have market thoughts today, I thought to share this.

Some of us may have got the above.. here is a small clip to explain and break it down.

Panic Sale Begins: Did you Buy in Because of Price? #FOMO or the Potential Disruptive Power of #Crypto. Thoughts on the market 11.01.2021.

#Bitcoin until mid of yesterday held above 40K, then followed by a correction to 39500-39600, it again declined, reaching lows below 35300, after which it is now trading between 36 and 37K. Total Crypto Market capitalization is at $1005 billion with BTC dominance index of 68.3%.
UPD. While writing this review, Bitcoin dropped to 35600, market capitalization fell to 970 billion.

Financial markets opened positively overall. Asian indices are rising, Brent is above 55, S&P 500 futures are down slightly. The dollar index is alarming, which opened with growth and reached 90.41 at a maximum, in case of further growth for the markets, this will put pressure on the markets.

On the crypto market this weekend, It worked out a version of the local altseason, which was discussed here (https://t.me/decryptedge/193). Market capitalization reached values ​​above 1.1 trillion, Ether went above 1340, most of the TOP altcoins showed good growth. Yesterday afternoon, Bitcoin went down. At first, support was lost at 39600, then on the second attempt they went below 37600, now trading below 35K, with lows about 33600. At the moment, the decline continues. I think this is a correction similar to the one a week ago (https://t.me/decryptedge/178).

The round bottom is at 30600-30500. It is not a fact that it will be achieved, but at the moment I see movement further unlikely. The new trading range will be clear after Bitcoin stabilizes. A return above 36K is required for continued growth. It's possible for it to hit 24K (Major support) / extend to 20K when you factor in panic selling, a bounce IF 32K support breaks. As you can see already on the news just by searching #Bitcoin on Google. From #CNBC, #Bloomberg etc.. Invest time and energy in learning the basic fundamentals. @Danheld one of the Bitcoin influencers says “To truly understand more so appreciate #Bitcoin you must have some grasp of: - Economics & Money - Open-Source Software - Computer Science - Game Theory - Politics and Law - Trading and Investing - Digital & Physical Security.” Seems a lot right..nothing comes easy. #Decryptedge is here to simplify and break it down for you.

Interestingly, #EOS founder Daniel Larimer has left. He says the reason is because he doesn't believe in providing "freedom as a service." But it is clear that the reason is more prosaic - not otherwise, he feels something behind him and fears attention from the SEC. However, he had previously left projects after the sale of coins to investors. Steem and Bitshares are also his projects.

This is not financial advice, analysis and market thoughts is to give you an idea about Bitcoin price movement (not buy or sell advice) so before following any idea be sure to do your own research, and follow your risk management. The information we share here is an effort and view from where we sit. It is subject to success or failure and we welcome constructive criticism 🙏.

The morning drain was stopped at 32900, briefly reaching a minimum of 32600. The drain was bought out, Bitcoin went up, and has been trading above 35K for 2 hours.

What will happen next?

In favor of a fall:

-Long rise, greed index at highs for 2 months.
-The dollar index began to grow, it has been growing since 8.01. If the growth continues, this will put pressure on Bitcoin.
-Capitalization fell below $ 1 trillion.

Give a lift to FUD(fear uncertainty and doubt) in particular, the British bank #HSBC is blocking transactions from crypto-exchanges.

In favor of growth:

The correction was quickly redeemed from 32600. The previous low was at 27600. Highs were being renewed all week.

-On January 14, Biden unveils a new trillion dollar economic bailout plan for lawmakers. If it is adopted (and with the dominance of Democrats in Congress and the Senate, it is unlikely to be otherwise), #Bitcoin will have no other path but to new highs.

-With the fall of Bitcoin, the alts fell, but there is no panic drain.
Etherum is now around $1100, Litecoin is above 140, BCH is above 500, and NEO is near the highs. The dominance index is 68.7% (it was about 70 a week ago, and 72% last weekend).

If the altcoins don't drain, there is no real fear in the market. The situation will change if Bitcoin goes below 30K.

For today, we consider the (1)movement of Bitcoin in the range of 32900-36000 as a priority option. (2). Leaving above 36K with consolidation - transition to growth. (3).Updating lows below 32600 will most likely lead to a test of 30600-30000, further depending on the reaction to the level. If you prioritize the options, then 1-2-3. #Decryptedge.

During yesterday's session #Bitcoin fell to $30,050. The correction was bought out, Bitcoin went up, reached $35400, and during the last 2 hours has declined again to $34000-33800. At the time of this writing, Bitcoin is trading around 34,000. Market capitalization is 918 billion, dominance index is 68.7%.

American markets were declining yesterday, indices lost from 0.27% (Dow Jones) to 1.35% (Nasdaq). The S&P 500 shed 0.66% to close at 3799.61. Tesla shares are down more than 8%.

Interestingly, the stocks of companies that blocked Trump supporters suffered the most - Twitter lost 6.92%, Amazon 2.15%, Google 2.31%, Apple lost 2.45%, Facebook lost 4.1%. This is logical - it is obvious that after this situation, many people and companies around the world will reconsider their attitude to social networks and related services. Not because of Trump and his supporters, but because of the realization that their personal data and business development are completely dependent on who knows who and in whose interests the managed structures.

On the crypto market, yesterday's analysis generally worked out. Spilled lower than expected, but the bottom at 30500-30600 was confirmed, after which the price returned above 33K and now the boundaries of a new trading range are being set. So far, I see support at 31600-32200 and resistance at 35400-35800.

Exit down - retest the bottom at $30600-30500, exit up and consolidation above 36K - continued growth. The latter option is more likely. The bottom is still at 30500-30600; intermediate support at $33800-34000 has also formed. TOP alts are moving to growth, Ethereum has confidently returned above 1000 and is approaching $1100, Litecoin and BCH with XRP are next.

The market was pressed yesterday by the growing dollar index, which reached its highest since the beginning of the year and continues to grow, as well as the FUD from the British regulator FCA, which decided to warn crypto holders about the need to be prepared to lose all their money. We shared about this((https://t.me/decryptedge/202).

In general, various kinds of regulators are evil and parasites on the body of the world economy, which spend huge resources on making it difficult for people and companies to manage their assets. In crypto, regulators are the main source of risks and financial losses. Speaking of regulators, you cannot fail to talk about taxes. Here’s a list of the most crypto-friendly tax jurisdictions, updated for 2021. Source | Decrypt.

1. Belarus may be a Bitcoin tax haven but it's also been the site of mass protests over rigged elections in recent weeks. The country was recently ranked third in Eastern Europe and 19th globally in levels of P2P crypto trading.

2. Germany. For German residents, any cryptocurrency held for over a year is tax-exempt, regardless of the amount. If the assets are held for less than a year, capital gains tax doesn’t accrue on a sale, as long as the amount does not exceed 600 euros ($692).

3. Hong Kong. It isn't a country per se, but a Special Administrative Region of China, with theoretical autonomy over its own affairs. And Hong Kong’s tax legislation on cryptocurrencies is a broad brush affair, even after new guidance was issued earlier this year.
Essentially, whether cryptocurrencies are taxed or not depends on their use, according to Henri Arslanian, a global crypto leader at #PwC.

4. Malaysia. Cryptocurrency transactions are currently tax-free, and cryptocurrencies don’t qualify for capital gains tax, because digital currencies are not considered assets or legal tender by the authorities.

5. Malta. The government of the so-called “Blockchain Island” recognizes Bitcoin “as a unit of account, medium of exchange, or a store of value.”
Malta doesn’t apply capital gains tax to long-held digital currencies like Bitcoin, but crypto trades are considered similar to day trading in stocks or shares, and attract business income tax at the rate of 35%. However, this can be mitigated to between five percent and zero, through “structuring options” available under the Maltese system.

6. Portugal. It has one of the most crypto-friendly tax regimes in the world. Proceeds from the sale of cryptocurrencies by individuals have been tax-exempt since 2018, and cryptocurrency trading is not considered investment income (which is normally subject to a 28% tax rate.) However, businesses that accept digital currencies as payment for goods and services are liable to income tax.

7. Singapore. Capital gains tax does not exist in Singapore, so neither individuals nor corporations holding cryptocurrency are liable. But companies based in Singapore are liable to income tax, if their core business is cryptocurrency trading, or if they accept cryptocurrency as payment.

8. Slovenia is another country that treats individuals and businesses separately under its cryptocurrency tax system. No capital gains tax is levied on individuals when they sell Bitcoin, and gains are not considered income. However, companies that receive payment in cryptocurrencies, or through mining, are required to pay tax at the corporate rate.

9. Switzerland. It’s no surprise that Switzerland, home to the innovation hub known as “#CryptoValley”, has one of the most forward-thinking tax policies too. Cryptocurrency profits made by a qualified individual through investing and trading are treated as tax-exempt capital gains. However, income from professional trading and mining is subject to income tax.

10. Bermuda. It doesn't impose taxes on digital assets. Another type of country that doesn't tax cryptocurrency gains, of course; tax havens where digital assets aren't singled out for special consideration, but which have a blanket low-tax regime.

Where is Kenya you may ask.. ? Before I answer that let me close with these thoughts, by the end of the week the market capitalization will return above 1 trillion. This option is almost inevitable if #Biden successfully presents a new support package to legislators on January 14, which again refers to trillions of dollars injected to the economy. For the exact #bitcoin levels follow: https://t.me/decryptedge Lastly the Kenyan Government does not regulate cryptocurrencies despite KRA’s push to the CBK to recognize these assets for revenue collection purposes.

This is not financial advice, analysis and market thoughts is to give you an idea about Bitcoin price movement (not buy or sell advice) so before following any idea be sure to do your own research, and follow your risk management. The information we share here is an effort and view from where we sit. It is subject to success or failure and we welcome constructive criticism 🙏.