3 hours ago
Ether (ETH), the second largest cryptocurrency by market capitalization ranking, recently soared from around $3,000 earlier this month to $3,500 for the first time this year before it lost some of its momentum. In a recently published crypto derivatives report, Bybit and research firm Block Scholes highlighted several factors, including macroeconomic developments and trading signals from the spot and futures market metrics, that could give ETH the much-needed push to reclaim higher price levels. What Could Drive ETH’s Surge? Perpetual swap funding rates have fluctuated in alignment with spot prices while maintaining a positive record for most of this month, especially for ETH. Bybit’s report explained that this translates to a “strong demand for long positions in the contract despite the downturn, or at least a lack of interest in short positions, due to liquidations or other factors.” Additionally, the crypto options market reflects a mix of short-term caution and long-term optimism. Due to uncertainty, traders are hedging against potential short-term price drops. However, they remain optimistic about the market’s long-term prospects, as the bullish skew in longer-dated options contracts shows. Moreover, the recent Consumer Price Index (CPI) data triggered a change in market structure as BTC, ETH, and many altcoins headed north. The bullish volatility smile indicates increased speculation and betting on potential price uptrends. Meanwhile, news about the incoming inauguration of the pro-crypto President-elect, Donald Trump, has recently boosted the market’s uptrend. Agreeably, the crypto community eagerly expects a new America with less strict crypto trading and investment laws. Thus, investors have switched attention to digital assets, mostly ETH and BTC, as they have struggled to gain regulatory clarity involving these assets over the past few years and survived different wavering market conditions. More Altcoins to Record Uptrends Like ETH, a few altcoins have also recently displayed bullish momentum. These include SOL, XRP, LTC, and others. Due to XRP’s 40% surge over the past week to reach $3.40, a few bullish and optimistic traders predict it may soar to $100 soon. Meanwhile, SOL became the biggest beneficiary of the TRUMP-induced price rally and shot up to a new all-time high of its own of almost $300 at press time. The post Ethereum (ETH) Sets the Stage for a Major Price Rally: Key Insights to Watch appeared first on CryptoPotato .
Crypto Potato
You can visit the page to read the article.
Source: Crypto Potato
Tags :
AA News Crypto News ETHBTC ETHUSD Altcoins Ethereum (ETH) Price
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Ethereum’s Unmatched Dominance: The Key Advantages Explained by Aave Founder Stani Kulechov
On January 20th, Stani Kulechov, the founder of Aave, highlighted the multifaceted strengths of Ethereum in a recent social media announcement. Primarily known for its unparalleled security, Ethereum operates within Crypto Potato
IRS to Require Third-Party Reporting on Crypto Transactions Starting in 2025 (Report)
Starting in 2025, cryptocurrency transactions on centralized exchanges (CEX) will fall under new IRS reporting requirements, marking a significant shift for digital asset investors. These changes mean that transactions conducted through custodial accounts on platforms like Coinbase and Gemini will now be subject to third-party reporting for the first time. New IRS Rules According to a CNN report , the Internal Revenue Service (IRS) has specified that brokers, which include custodial trading platforms, certain wallet providers, digital asset kiosks, and some payment processors, must report these transactions. The information will be captured on a new form, the 1099-DA, which will detail all purchases and sales of digital assets. This form will be sent to both the taxpayer and the IRS by early 2026. Taxpayers will be required to include this information in their 2025 tax returns. Failure to do so could result in discrepancies, as the IRS will already have this data on file. Cost basis reporting, which refers to the original purchase price of a digital asset, will not be required from brokers until the 2026 tax year. Jessalyn Dean, vice president of tax information at Ledgible, explained that this delay may affect taxpayers’ ability to calculate taxable gains accurately. It is important to note that the cost basis is crucial for determining the gains or losses from asset sales. For those engaging in decentralized platform transactions, the timeline is different. Peer-to-peer transactions on platforms like Uniswap and Sushiswap will not be subject to third-party reporting until 2027. These platforms will report only the gross proceeds of transactions, as they do not have access to the original purchase price necessary to calculate the cost basis. Meanwhile, investors in spot Bitcoin exchange-traded funds (ETFs) will also be affected by reporting requirements this year. ETF providers will issue forms such as the 1099-B or 1099-DA, which will include not only the proceeds from sales but also any taxable events that occur within the fund. Dean even advised Bitcoin ETF investors to seek guidance from tax advisers, as taxable gains or losses can arise from the fund’s internal management activities, even if the underlying assets are held long-term. IRS Relief Notice The latest development comes less than a month after the IRS introduced automatic relief for centralized finance users facing new crypto tax regulations in 2025, requiring no immediate action. This relief addresses complications from Section 6045 custodial broker rules, which required CeFi brokers to report transactions using specific accounting methods. Defaulting to FIFO could increase tax liabilities, but taxpayers can bypass this by using their own records or crypto tax software. Starting in 2026, users must select an accounting method with their brokers to avoid default FIFO treatment. The post IRS to Require Third-Party Reporting on Crypto Transactions Starting in 2025 (Report) appeared first on CryptoPotato . Crypto Potato
