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The crypto situation in the USA is somewhat critical at the moment as the scrutiny of lawmakers and regulators has increased towards crypto. According to reports, there have been debates over implementing crypto tax as well. This has caused many retail investors to back away from the crypto market.
However, the plans for crypto tax in the country have not bothered the institutional investors. The big investors are still seen to be in Bitcoin’s corner.
After months of struggling to reach the $40,000 region, the flagship digital asset has finally seen a price surge. It is currently trading at $45,756 (at the time of writing), which has made the investors even more optimistic regarding its future.
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Why Institutional Investors are Unconcerned About Crypto Tax Plans?
Plenty has been going on in the crypto market for the last few weeks. The price volatility of the crypto assets was concerning to many while there was also an ongoing crackdown against Binance in Europe.
Considering these and several other factors, the need for regulatory oversight has increased in some ways. However, despite potential regulation, the institutional investors are hopeful about the future of Bitcoin and the overall crypto market.
According to data revealed in a recent report, almost 20% of the price surge seen for BTC was fueled by the big investors. Based on the trend, several analysts have concluded that major investors are more focused on the upside of digital assets rather than the downside.
Joel Kruger, a crypto strategist stated:
“Investors are looking to the positives around regulation rather than the negative,”
Kruger also stated that increased regulation of the crypto assets actually works in favor of the crypto market. It helps in validating the industry and indicates that it is becoming more and more prominent. This ultimately leads to the acceptance and adoption of the crypto industry, which is highly beneficial.
The crypto market is also quite familiar with the regulators now. This is one of the reasons why such news does not impact it severely.
Andrew Tu, an expert in the industry stated:
“The recent price increase over the last week…has shown that the market does not react strongly to concerns over regulation, as opposed to actual legislation passing.”
Therefore, these are only some of the reasons why the major investors in the USA are not concerned about investing in Bitcoin, despite news of crypto tax plans.
What Should Other BTC Investors and Traders Know?
The institutional investors are quite optimistic about the future of BTC. This is why instead of worrying about potential crypto regulations, they have highlighted the market fundamentals of BTC that are growing stronger.
Head of Market Insights at Genesis, Noelle Acheson, stated:
“The regulatory concerns don’t impact Bitcoin here as much as other cryptocurrencies, and the sentiment behind Bitcoin has been showing signs of turning for a couple of weeks now,”
In short, Bitcoin has finally started moving in an upward momentum, which is good news for all BTC investors and enthusiasts.
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