Key Price Drivers for Bitcoin This Month + More Crypto News
Source: AdobeStock / Vitor Miranda
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In this edition:
Key Price Drivers for Bitcoin This Month
CoinTracking Crypto News Today: Crypto Tax Tool for UK Investors Launched
OKX Ventures Invests in Web3 Gaming Company Matr1x
KuCoin Ends 2023 With a 106% Surge in Spot Volumes and User Base of 31 Million
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Key Price Drivers for Bitcoin This Month
The recent surge in Bitcoin (BTC)’s price is “a multifaceted phenomenon driven by anticipation of regulatory approvals, institutional interest, and market dynamics,” according to Jag Kooner, Head of Derivatives at Bitfinex.
In an emailed note, Kooner shared insights on what drives key market developments:
Anticipation of ETF approval: The surge in recent months is attributable to the market’s optimism regarding the US Securities and Exchange Commission (SEC) approving spot Bitcoin exchange-traded funds (ETFs). There has been a near 49% price increase since October 2023 thanks to this, reflecting the market’s expectation that multiple applications, including BlackRock’s, will be approved or denied at the same time.
Bitcoin Halving: Bitcoin halving, expected in April, has traditionally led to price increases due to a reduced supply of new coins. We have seen the highest supply inactive statistics, especially for long-term holders. So this effect is already in play, Kooner said.
Futures market and funding rates: The CME Group’s BTC futures open interest has hit levels not seen since 2022, with asset managers and leveraged funds showing significant activity. A positive funding rate across the board indicates a bullish sentiment and a willingness among investors to bet on further price increases. The significant correction towards $40,000 could be seen as a “funding rate reset” with one of the largest liquidation cascades ever.
Institutional sentiment: The sentiment among institutional investors is constructive. The futures curve’s upward shifts in late 2023 indicated bullish activity and a long bias. This institutional interest is also seen through CME OI increase, which is mostly a medium for TRadFi investors over normal retail investors.
CoinTracking Crypto News Today: Crypto Tax Tool for UK Investors Launched
In the latest UK crypto news, especially as the crypto taxation in the UK is changing fast, cryptocurrency tax software and portfolio tracker CoinTracking has launched a crypto tax tool that simplifies crypto taxes, said the press release.
With a crypto tax software like CoinTracking, UK-based investors can track their portfolios by importing trades from hundreds of exchanges, crypto wallets, and blockchain networks, it said.
Investors also benefit from more than 25 advanced reporting features, including discovering which coins in their portfolio could be eligible for a lower tax rate based on their holding period.
Thanks to these features, investors can gather all the necessary information and generate the right tax reports. This is possible due to CoinTracking supporting gains calculations according to the valid accounting method in the UK, the HMRC.
Investors needing further help with their taxes can find a solution with CoinTracking Full-Service. A team of CT experts and partner crypto tax firms review, validate and adjust their transactions, complete imports, and ensure correct tax reports.
“Full-Service was specially designed for UK investors with complex crypto trades to report and not a lot of time to work out the intricacies of taxes,” said Florian Ostermeier, Head of Full-Service.
OKX Ventures Invests in Web3 Gaming Company Matr1x
OKX Ventures, the investment arm of crypto exchange OKX, announced a strategic investment in Matr1x, a Web3 entertainment platform that engages users through cyberpunk-themed e-sports games.
Per the press release, Matr1x has raised about $20 million from a range of venture capital firms. It is developing Matr1x Fire, a first-person CS:GO style shooting title, as well as a ‘battle-royale’ mode, which allows players to work together on teams to defeat enemies.
“The game revolves around a generations-old conflict between data cartels and a decentralized resistance,” the announcement said.
Matr1x Fire will integrate classic Web3 elements, including NFTs, which unlock special experiences and privileges. It will be available on mobile and desktop.
KuCoin Ends 2023 With a 106% Surge in Spot Volumes and User Base of 31 Million
An annual report by crypto exchange KuCoin has found a 16% year-over-year increase. The user base is now nearing 31 million, according to the press release.
The most significant growth in the past year came from the Latin America region, with a 34% increase. The company saw “substantial user base growth” in other key regions compared to 2022. This includes the Middle East and Africa (27%) and Europe (25%).
The last quarter of 2023 observed a 106% jump in spot trading volume. KuCoin recorded the most significant growth in Europe (+169%), Latin America (+111%), and Middle East and Africa (+124%).
Furthermore, the exchange added 149 new assets, bringing the total to 830 digital assets. It is supporting 1,246 trading pairs as of December 2023.
It also highlighted its 1.9 million KCS holders, an 11% year-over-year increase, as well as over 10,000 KuCard holders within a month of its launch.
The post Key Price Drivers for Bitcoin This Month + More Crypto News appeared first on Cryptonews.
