OZ Crypto Roundup: Bitcoin rallies towards a new all-time high
Weekly Market Update
4 October to 8 October
Bitcoin and Ethereum have both taken October by the horns, with prices bouncing back to within touching distance of recently-set all-time highs. But will the momentum last?
- TLDR – A snapshot of the week
- BTC up 12.5% (US$53,856 and AU$73,775)
- ETH up 6.5% (US$3,575 and AU$4,897)
- Aussie crypto fintech joins forces with Tiktok
- El Savador mines Crypto with Volcanic energy
- JP Morgan CEO labels Bitcoin as “fool’s gold”
- Why ATO has issued warning on crypto profits to investors
Aussie fintech company Immutable teams up with Tiktok
In another major move for the NFT business, Australian crypto company Immutable has teamed up with the video-sharing app Tiktok to let users trade viral videos from the platform as Non-fungible tokens (NFTs).
- Dubbed ‘Tiktok Top Moments’, Tiktok is set to release a series of viral moments from top creators like Bella Poarch, rapper Lil-Nas X, Grimes, and Gary Vee.
- Selected “Tiktoks” will be auctioned off to fans in the form of NFTs which can be traded on the Ethereum blockchain.
- Immutable’s cofounder Robbie Ferguson has described it as an easy way for fans to “own culturally significant moments” on the platform.
- Trading will be facilitated by Immutable X—a scaling solution for NFTs designed to slash the cost of trading while being carbon-neutral—which comes as a significant benefit to potential environmental conscious Aussie traders.
- Providing Australian and international creators with another avenue to earn revenue outside of advertising and sponsorship, this supports the growing value proposition for NFTs.
El Savador successfully mines Bitcoin with the power of renewable energy
- El Savador has successfully mined roughly $270 worth – or 0.00599179 Bitcoin – through geothermal powered energy.
- The achievement follows a wider investment from the Salvadoran government to make the country an international leader in cryptocurrency, with 550 bitcoins already held in the country’s reserves.
- While the amount mined is relatively small, the project has further supported discussions around renewable energy in cryptocurrency mining.
- With almost 25% of the countries domestic energy production powered by geothermal energy, the project reflects an intelligent use of domestic resources for national gain.
- Australia’s own commitment to renewable resources, and cryptocurrency for that matter, has been relatively restrained, with only 24% of electricity generated from renewable energy in 2020.
- With the boom in solar adoption on the rise, crypto mining like in El Salvador presents a noteworthy investment opportunity for Australia’s growing renewable resources industry.
ATO issues warning on Crypto profits to investors
- A report on Thursday has indicated the Australian Tax Office (ATO) is concerned that Australian investors as misreporting their cryptocurrency investments.
- The ATO has suggested many local traders may be unaware that each instance of buying, selling, or trading crypto is subject to capital gains tax (CGT).
- In this way, each profit or loss must be reported in an investor’s annual income tax return, with special discounts granted for long-term investors that reduce their CGT obligations.
- At a special senate hearing, the ATO seeked to clarify the difference between individuals and businesses reporting cryptocurrency transactions, stating businesses must report each transaction as a business activity.
- This report comes as Australia’s growth in retail investment in cryptocurrencies, with the estimation of around 1 million Australians invested in the digital assets.
Market sentiment on the up
- Broader institutional adoption across the world has laid the foundations for an upwards price movement for Bitcoin and Ethereum.
- Following a weekend rally, Bitcoin has broken through resistance at AU$69,000 to AU$70,400, extending gains into the later half of the week.
- With Bitcoin reaching above AU$75,000, prices have breached the downtrend line connecting April’s high of AU$88,768 and September’s AU$71,232, which could be indicative of bullish attitudes among investors.
- While the Relative Strength Index (RSI) has been consistently higher than it was in September, suggesting it could be overbought. October has traditionally been a strong month for Bitcoin. Will it be the same in 2021?
- Market analysts have suggested BTC’s price need to stay above AU$65,700 to continue this recent rally towards previous all-time highs.
- ETH’s price has followed a similar price trend to BTC, moving past September’s high of AU$4,864 while peaking at AU$4,960 on Friday.