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Japan proposes new crypto rules, potential tax cuts and ETF approval Astar (ASTR) founder Sota Watanabe announced on X that Japan’s ruling party has proposed regulating crypto under a new framework within the Financial Instruments and Exchange Act. If passed this year, it could lead to crypto ETF approvals and lower taxes from 55% to 20%. Cryptocurrencies would also be classified as a new asset type, not securities. Watanabe called it a major win for the industry, highlighting strong cooperation between the government and industry leaders.

Chinese Embassy in US: If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.

Crypto whales dumped vast amounts of Bitcoin (BTC) after plunging deep into panic mode. Bitcoin’s price slipped below $80K for the first time in months, heightening selloffs. At press time, BTC’s market cap stands at $1.7 trillion, with altcoins gaining ground. Despite declining BTC dominance, altcoins have also faced a bumpy trend in the same period. Whales Are Repositioning Assets On-chain data shows whales dumped over 40,000 BTC as the crypto dip bit harder. This comes on the back of negative sentiments as traders seek to mitigate losses. These movements have lowered the chances of a quick rebound although bulls offer other metrics for a recovery. Traditionally, asset repositioning extends the bear phase, usually salvaged by an influx of institutional investors. Several experts have projected a recovery by April citing on-chain and macro factors. In a Feb 28 report, Matrixport predicted the bear sentiment can extend between March and April before institutional investors pour funds into the market. “Looking ahead, the forward-looking nature of this time series suggests that once this correction runs its course potentially last until March or April. Bitcoin could attempt to rally back toward previous highs. Analyzing macroeconomic trends and central bank policies gives us a clear edge in forecasting Bitcoin’s price trajectory. This type of analysis is only becoming more crucial…” Last year institutional funds pushed Bitcoin to multiple all-time highs, consolidating on gains recorded after the approval of spot ETFs. These products have attracted over $39 billion in inflows since January 2024. Traditional finance players increased their asset exposure after many years of skepticism. Overall, these players are projected to reclaim dominance, pushing the asset to a cycle peak. At the time of writing, BTC exchanged hands for $84,501. Investors Set Gaze on Altcoins While traders offloaded BTC from their holdings, some redirected assets to altcoins to capitalize on the deep. According to Ali Martinez, Solana (SOL) is experiencing major macro shifts after several whales bought the dip. In the last 72 hours, traders also purchased 170 million ADA. ETH bulls also joined the party after the price fell below $2,200. Top meme coins like Dogecoin and Shiba Inu also traded similarly amid investor interest. Most altcoin enthusiasts target spot ETF approval to ignite price leaps. This is expected to usher in the much-anticipated altcoin season.

The concept of units of Bitcoin being stored in US strategic reserves is starting to receive greater focus as observers are wondering if it would be worth adding Bitcoin to the asset list that already contains gold and foreign currencies. But does this action significantly expose the U.S. financial system, or is it a decision that has an optimum opportunity cost? Bitcoin as A New Asset Class Decentralization and a supply cap of 21 million coins are some of the qualities that make Bitcoin attractive. Diversifying reserve currencies in the U.S. could help strengthen the economy and help solve the issue of inflation. Unlike traditional fiat currencies, which central banks can generate at their own will, Bitcoin has a fixed supply, making it immune to inflation. Further, Bitcoin value is argued to be associated with gold, and its modifications or COVO of value is long-term reliable. The US can integrate this new technology and reserve currency type while simultaneously securing its wealth from volatile economic conditions by placing Bitcoin in its reserves. The Volatility Risk While Bitcoin offers exciting prospects, its volatility is a main issue. In contrast to gold, which has seen a more consistent value over the decades, the price of Bitcoin keeps changing. Bitcoin’s worth fluctuated between $29,000 and $68,000 in 2021, showing just how volatile it is. The volatility is a huge issue when considering it for U.S. reserves. The national reserves’ main function is to introduce stability to economic declines. Hence, if the price of Bitcoin plummets unexpectedly, the U.S. could lose a lot of money, destabilizing its reserves and undermining confidence in the economy. Liquidity Issues Another issue is the liquidity of Bitcoin. Although Bitcoin is widely traded, it’s still a relatively new asset class compared to traditional reserve currencies. In times of economic downturn, the U.S. would need to quickly convert reserves into cash to support the economy. Bitcoin’s market can experience episodes of illiquidity, where large transactions could cause drastic price movements. This makes uncertain whether or not Bitcoin could readily be liquidated without impacting its value, making it difficult to play the role of a reserve asset of sorts. The United States needs quickly available reserves that can be converted into currency, and Bitcoin liquidity may not be sufficient. Regulatory Challenges The decentralized nature of Bitcoin provides a huge problem for regulation. Since Bitcoin is not governed by any central authority, it is difficult for governments to regulate. To make Bitcoin part of the U.S. reserves, there must be clearly outlined regulations. If it is not regulated, then Bitcoin could expose the U.S. to risks of fraud, security issues, and market manipulation. Regulatory clarity is crucial for using Bitcoin safely. However, without clear and comprehensive rules, including its use in U.S. reserves, it remains a complicated issue. A Risky Move or a Smart Diversification? While Bitcoin has so much potential for diversification, its volatility, liquidity issues, and regulatory concerns make it a risky choice for American reserves. As the future of Bitcoin in the financial sphere evolves, the United States government has to carefully consider the risk factors before deciding. The post The Bitcoin Reserve Question: Opportunity or Risk for U.S. Financial Security? appeared first on Coinfomania.

As a believer in Dow theory. It's not so much manipulating trend but more so taking advantage of the main trend. Hence why you see one type of post one day and the opposite the next. Ltf can be manupulated but not htf. Follower not the driver.