A1 Trading Company

August 3, 2021

Capital Gains Sparks Fear In The Crypto World

Frank Cabibi

8/3/2021

All of the allurement around the crypto community has to do with the fact that most transactions are anonymous and independent form any national regulatory system. But, the new Infrastructure Bill introduced by Congress could stop the crypto tax loophole that investors have used to avoid reporting to the IRS, and lead to a more traceable market of transactions. Now these digital assets will be treated as assets to the IRS, which means any kind of cryptocurrency trade or transaction will be counted on your capital gains tax sheets.

Our outlook

An argument for the increased regulation and oversight for crypto from this Bloomberg article actually makes sense to me. Gary Gensler, SEC Chair, argued that an increase in regulation would mean more investor protection from fraud, which could lead to more adoption of cryptocurrencies on an institutional scale. How tight of a grip should the government have in the altcoin market, I don't know. More regulation will probably hurt the market in the short term before analysts start finding any kind of benefit of oversight.

Trade Setups

BTCUSD

Bitcoin forms a lower low on the 4H chart as price action looks weak right now. Further support lies below around $36,381. $40K still serves as a psychological level to break, and bitcoin's recent retracement looks like it will be a tough level to break.

ADAUSD

Cardano looks like it's forming a triple top on the 4H timeframe as price is showing some rejection from the highs at the time of writing this. A break in this resistance could lead to a run up to 1.494521, but a dip could take the coin back to support around 1.262134.

ETHUSD

Ethereum on the 4H timeframe broke and closed under a rising trend line which could send price to support around $2,415. The most recent high on this coin is around $2,699.

A1 Edgefinder

All-In-One Fundamental Dashboard!
Simplify your fundamental analysis with our all-in-one fundamental dashboard! 
Discount code: READER

Learn more

Dollar Remains Strong

Indices recover from Friday's lows as the dollar index hovers at break even. The mounting tensions in Israel-Iran escalated market worries, but financial earnings have kicked off to a good start. EdgeFinder Analysis Retail Sales came in higher than expected which is a good sign for the economy. It's also strong for the USD as […]

Read More
Hotter CPI Shakes Markets

Yesterday's CPI numbers in the US caused considerable doubt in the expectations of a June rate cut. This morning's PPI came in lower than expected. But, it might not be enough to convince investors of a summer rate cut. EdgeFinder Analysis EURUSD is a -8 now on the EdgeFinder indicating dollar strength after the higher […]

Read More
Key Inflation Data Weighs on Investor Sentiment

Wednesday's inflation report in the US will be very pivotal in how USD-related assets will react for the next month. Higher CPI has investors worried of the Fed who still looks to cut rates at some point this year, but the inflationary trend could determine when these rate cuts come. EdgeFinder Analysis We have been […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonemenumenu-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram