The global cryptocurrency landscape is witnessing significant developments, from regulatory changes to technical upgrades and political discussions. In the UAE, a landmark decision exempts crypto transactions from VAT, a move aimed at clarifying the tax treatment of digital assets. Meanwhile, Bitcoin faces resistance in its price rally as key technical indicators point to potential future movements. In the US, cryptocurrency is becoming a crucial issue in the 2024 presidential race, with voters prioritizing candidates knowledgeable about digital assets. Former First Lady Melania Trump is also expanding her NFT initiatives for philanthropic causes, reflecting the broader blockchain involvement of the Trump family. On the global stage, China’s former finance minister urges the country to prioritize crypto in the face of growing competition, while Ethereum introduces a proposal to enhance network efficiency by reducing block times. These developments highlight the evolving role of cryptocurrency in finance, politics, and technology.
UAE Exempts Crypto Transactions from VAT
The United Arab Emirates (UAE) has amended its value-added tax (VAT) regulations to exempt transactions involving virtual assets, including cryptocurrencies. Announced by the Federal Tax Authority on October 2, 2024, the changes are retroactive from January 1, 2018, and will take effect on November 15, 2024. This exemption aims to clarify the tax treatment of digital assets and align with previous tax law updates. Businesses dealing with virtual assets are advised to reassess their VAT obligations and consider voluntary disclosures to rectify past returns if necessary. These amendments occur alongside Dubai’s efforts to regulate the virtual asset sector, including updated marketing rules requiring clear disclaimers about the risks associated with digital assets.
Will Bitcoin Break Resistance or Face a Bearish Reversal?
Bitcoin is currently facing resistance at the $66,383 level while continuing to trade within a bearish channel on the weekly timeframe. The lower boundary of this channel is positioned at $53,000, indicating potential downside risk if selling pressure persists.
Conversely, a decisive break above the key resistance at $66,383 would signal a shift in momentum, potentially paving the way for further appreciation.
Technical indicators point to a potential rally, with the Momentum oscillator and Relative Strength Index (RSI) both positioned above their key baselines of 100 and 50, respectively. Additionally, the “Golden Cross” formation observed on September 22 further reinforces bullish sentiment. This occurred as Bitcoin’s 20-period Exponential Moving Average (EMA) crossed above the 50-period EMA, signaling a possible acceleration in upward momentum and strengthening the case for a continuation of the upward trend.
If bullish momentum persists, Bitcoin could aim for key price targets at $66,383.00, $70,397.32, and $76,893.12. However, a decisive break below the critical support level of $59,887.12 may signal a potential bearish reversal, with downside targets at $57,197.36, $53,052.29, and $45,887.16 coming into focus.
Cryptocurrency Takes Center Stage in US Presidential Campaign
A recent poll reveals that US voters are increasingly prioritizing candidates with crypto knowledge as the 2024 elections approach. Over half of likely voters said they are more inclined to support candidates who understand digital assets, reflecting the growing importance of crypto in the political landscape. While inflation, national security, and foreign policy remain top concerns, crypto has emerged as a significant issue, particularly among younger and diverse voters. A Coinbase analysis shows that crypto voters could influence election outcomes in key battleground states, with these voters split between supporting Donald Trump and Kamala Harris. The poll also highlighted rising cryptocurrency adoption, with many voters waiting for regulatory clarity before investing further.
On another note, former First Lady Melania Trump plans to expand her involvement in NFTs and blockchain technology to support foster children if she returns to the White House. She aims to enhance her “Be Best” initiative through her Web3 platforms, combining art, technology, and philanthropy. Despite some challenges with her NFT ventures, Trump remains committed to using digital assets for charitable purposes. Her efforts reflect a broader trend within the Trump family, as Donald Trump also engages with blockchain technology through NFT collections and DeFi projects.
China’s Former Finance Minister Urges Beijing to Prioritize Crypto Amid Global Race
China’s former Minister of Finance, Zhu Guangyao, has urged Beijing to pay closer attention to the crypto market, highlighting its importance in the digital economy. Speaking at a summit hosted by Tsinghua University, Zhu emphasized both the risks posed by crypto to capital markets and the need to study international developments, referencing US political discussions on the topic. He pointed to Republican candidate Donald Trump’s remarks advocating for the US to fully embrace crypto, warning that China could fall behind if it doesn’t act. While China remains cautious on crypto, Hong Kong has taken a more open approach, listing Bitcoin and Ethereum ETFs.
Ethereum Proposes Faster Block Times to Boost Network Efficiency
A new Ethereum Improvement Proposal, EIP-7781, recommends reducing the blockchain’s slot time from 12 seconds to 8 seconds. Slot time is the interval at which new blocks are proposed on the Ethereum network. Shortening this interval would increase the frequency of block production, enhancing network efficiency and boosting transaction throughput by approximately 33%. Researcher Ben Adams highlighted that this change aims to lower latency for rollups—Layer 2 scaling solutions that utilize Ethereum’s sequencing capabilities—without increasing the peak bandwidth requirements or the size of each block. The proposal focuses on reducing slot time to improve scalability instead of raising the gas limit per block or expanding blob capacity. The proposal is currently under preliminary review as part of Ethereum’s ongoing efforts to enhance network performance.
Conclusion
In conclusion, the cryptocurrency landscape is rapidly evolving with major regulatory, technological, and political developments. The UAE’s VAT exemption on crypto transactions signals a forward-thinking approach, while Bitcoin’s price movement remains pivotal between potential bullish and bearish trends. In the US, cryptocurrency is becoming a key issue in the 2024 presidential campaign, influencing voter preferences. Figures like Melania Trump are expanding their use of blockchain for philanthropy, reflecting growing mainstream adoption. Globally, China’s push to prioritize crypto highlights the competitive race for digital leadership. Meanwhile, Ethereum’s ongoing efforts to improve network efficiency demonstrate the industry’s commitment to innovation.