Bitcoin price is below $20,000 currently after the top cryptocurrency by market cap fell 7.3% over last week. A glance at the daily chart reveals the price is retreating after a bounce last week following a breakout from a downward channel that reversed the three-month long advance in the bearish flag pattern. It is evident Bitcoin’s bearish momentum is intact and price will fall further – below $19,000!
While markets stumbled after Federal Reserve Chair Powell reiterated at Jackson Hole that the central bank will continue rate hikes to bring down consumer price inflation, large Ether traders position for volatility spike as Merge draws near and Japan is considering corporate crypto tax breaks to entice startups while crypto exchange Coinbase faces Class Action lawsuit over Alleged security shortfalls.
Institutions seems to be adopting Ether options trading strategy called a long strangle aimed to make a profit from price volatility ahead of Ethereum switch from the energy-intensive proof-of-work consensus mechanism to a more efficient proof-of-stake system known as Merge. Analysts expect the Merge to take place sometime in mid-September. Block traders – or large – have set up strangles in options with September 9, September 30 and October 28 expiries, according to crypto asset management firm Blofin.
Japan`s financial services agency (FSA) and the ministry of economy, trade and industry are considering a tax reform proposal for 2023. The potential tax reduction could exempt crypto startups that issue their own tokens from paying taxes on unrealized gains. Reform proponents hope it will encourage startups to remain in Japan. Presently startups that issue their own tokens must pay taxes on unrealized gains for the tokens they might be holding.
A class action lawsuit filed in a federal court in Georgia alleges crypto exchange Coinbase failed to secure users` accounts against theft and hacks, and seeks damages upwards of $5 million. Coinbase is facing several lawsuits after going public in the US last year - a class action lawsuit filed in New Jersey alleging the company allowed US persons to trade unregistered securities, a Coinbase shareholder accusing the company of misleading investors about last year`s public listing and two separate lawsuits filed by investors through arbitration.
