Bitcoin's Explosive Rally: Will You Soar with the Surge or Fall with the Drop?

Bitcoin's Potential Parabolic Phase: Analyst Insights

The Daily Hodl reports that a crypto analyst, known as Rekt Capital, suggests Bitcoin is on the verge of entering another explosive phase in its market cycle. This prediction comes after observing historical patterns and recent corrections. However, he cautions investors about an impending severe correction following this rally, which could surpass previous pullbacks by more than 17%. Despite these warnings, the analyst remains optimistic about a third price discovery phase post-correction.

U.S. Lawmakers' Crypto Stance Under Trump Administration

According to Reuters, U.S. lawmakers are reportedly light on cryptocurrency regulation as they enter a new era under President Donald Trump. Notably, JD Vance is among thirteen members who have reported holdings in cryptocurrencies while crypto companies invested heavily in congressional races during elections. Trump's administration has appointed several pro-crypto advocates to high-level roles; however, specific legislation regarding digital assets is still anticipated.

MicroStrategy Faces Tax Challenges Over $19 Billion Bitcoin Gains

A report from Bitcoinist highlights potential tax issues for MicroStrategy due to their unrealized gains amounting to $19 billion from holding over 430,000 Bitcoins, valued at approximately $47 billion currently. The Corporate Alternative Minimum Tax (CAMT) provision might require them to pay taxes despite not selling any BTC yet, since exemptions applicable for securities do not extend towards cryptocurrencies like Bitcoin according to IRS guidelines so far.

Nasdaq Proposes In-Kind Redemptions For BlackRock Spot Bitcoin ETF

CoinDesk reveals Nasdaq’s filing with the SEC proposing rule changes allowing authorized participants direct share purchases or redemptions using actual Bitcoins instead of cash transactions within BlackRock iShares’ largest spot BTC exchange-traded fund. The fund attracted nearly forty billion dollars in inflows last year, making it the most successful debut ever recorded thus far amidst regulatory hesitations initially surrounding such mechanisms previously approved only via monetary means earlier this year. Bloomberg Intelligence analysts further elaborated on the context of these developments occurring alongside ongoing discussions among concerned stakeholders.

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Article Summary

A crypto analyst predicts Bitcoin may enter a parabolic phase but warns of a severe correction, while U.S. lawmakers under Trump are light on regulation; MicroStrategy faces tax issues over $19 billion in unrealized gains, and Nasdaq proposes rule changes for BlackRock's Bitcoin ETF involving direct BTC transactions.