📊 Bitcoin stays strong above $30,000 despite Biden’s push to close crypto tax loopholes.
📈 Surpassing Expectations: US Data and PCE in Focus
💸 As US Treasury yields soar, USD/JPY continues to climb
🤑 USD/JPY on the Rise as it Approaches 145.00
💰 Fresh Monthly High for USD/JPY, Potential for Volatility
⛳️ The US Dollar gets a boost from positive data as US bonds sell-off
Bitcoin is showing signs of a potential rally, with a new high reached at $31,430. A close above the $30,711 resistance level could signal a buying opportunity, with a target of $35,260 and the possibility of retesting $41,273.
Ethereum is also looking promising, with a potential 45% increase to $2,915 if it breaks the $1,865 hurdle.
Indicators support a bullish momentum shift, but a close below $1,639 could negate this outlook.
Ripple’s price remains uncertain as it trades between resistance barriers.
Breaking the $0.548 barrier could lead to a 40% increase, but concerns arise from lower lows in indicators.
A drop below $0.413 could negate the bullish outlook.
President Biden Proposes to Eliminate Tax Loopholes for Crypto Traders and Hedge Funds
In a bold move towards fair taxation, President Joe Biden announced on Wednesday plans to close loopholes in the existing tax system that benefit crypto traders and hedge fund managers.
Speaking in Chicago while presenting his economic plan, the President emphasized the need for equality and transparency in the tax system.
Specifically, Biden acknowledged the prevalence of crypto wash trading and indicated that new taxation rules would be implemented to address this practice.
Unlike stocks and bonds, crypto trades have thus far been exempt from regulations against wash trading.
Under the proposed changes, crypto traders would no longer be able to sell investments at a tax-deductible loss before immediately reinvesting.
This tactic, known as wash trading, would be targeted in order to create a more equitable tax system.
Despite this crackdown on tax loopholes, the price of Bitcoin remains resilient, staying above the crucial $30,000 mark.
The market’s reaction will undoubtedly be closely watched by investors and enthusiasts alike as these proposed changes take shape.
Surprising Drop in Pending Home Sales in May, US Dollar Index Holds Strong
Recent data from the National Association of Realtors reveals that pending home sales in the US took an unexpected dip of 2.7% in May.
This decline follows a 0.4% drop in April, which was revised down from 0. The market had anticipated a slight increase of 0.2%, making this disappointment even more significant.
While contract signings dipped in three regions of the US, there was a notable increase in the Northeast.
Comparing the year-over-year figures, pending home sales experienced a sharp decline of 22.2%, exceeding analysts’ predictions of a 21.9% decrease.
The market’s response has been noticeable, with the US Dollar Index showing strength and trading above 103.00 on Thursday.
Although the index initially spiked after the release of Q1 GDP and jobless claims data, it has since pulled back slightly, reducing its gains.
US Data Exceeds Expectations, USD/JPY Surges to Highest Level in Months
Surpassing expectations, US data indicates a strong economy and increases the likelihood of more interest rate hikes from the Federal Reserve. The USD/JPY pair is steadily advancing towards 145.00, reaching its highest level since mid-November.
US Treasury bonds experience a sell-off as robust US data continues to flow in. The widening gap between US and Japanese bond yields reflects a growing monetary policy divergence between the two countries. Approaching 145.00, a potential intervention from Japanese authorities may be on the horizon.
A break above this level could lead to increased volatility and further gains. Despite the US Dollar’s recent upward momentum, support levels are in place. The immediate support level is at 144.50, followed by 144.10 and 143.75.
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