Following Jerome Powell’s recent encouraging 2022 market announcement, the crypto and equities markets reacted immediately, with prices in both markets surging. The price increases come shortly after Powell hinted that interest rate hikes might slow.
Santiment, a crypto market intelligence firm, tweeted this morning that this slight shift in market sentiment could result in strong bullish support for crypto markets leading up to the December 13-14 FOMC meetings.
The S&P 500 reached an 11-week high, as shown by the chart shared by Santiment. Bitcoin (BTC) and Ethereum (ETH), the two crypto market leaders, recovered during the same period.
BTC is currently trading at $17,119.05, up 1.49% in the last 24 hours. Meanwhile, the price of ETH has risen 1.24% to $1,284.67.
BTC currently trades above the 9, and 20 Exponential Moving Average (EMA) lines daily. The bearish gap between the two EMA lines is closing as the daily 9 EMA line prepares to cross bullishly above the daily 20 EMA line.
This bullish cross of the two EMA lines may not occur because the daily RSI line is negatively sloped, and there is more sell volume in the market than buy volume. BTC trades at a resistance level of $17,3k, so traders may take profits and manage their risk.
With a plan to tax digital trading, Italy appears to be the latest European country to cash in on crypto businesses moving into the region.
A 26% tax on capital gains of more than €2,000 ($2,062) from cryptocurrency trading would come under a proposal included in the country’s 2023 budget.
Meanwhile, Binance has registered as a provider of digital assets in France, Italy, and Spain.
Gemini expanded its European presence by five countries last month and announced yesterday that it had also received regulatory approval in Italy and Greece.
Portugal has already announced a tax of 28% on profits from selling digital assets held for less than a year, though crypto can be tax-free if held for a longer period.
As part of the Italian government’s plans, crypto investors could declare their holdings as of January 1, 2022, and receive a lower rate of 14%.