Bitcoin’s Bullish Surge: On-Chain Data Sparks Optimism as Over 96% of Short-Term Holders Profit, BTC Price Soars Above $30,000 – Is $40,000 the Next Breakthrough?

• Bitcoin is holding strong above $30K, buoyed by the anticipation of spot Bitcoin ETF applications; potential for further growth is expected.
• Japan’s latest amendment to its tax laws, excluding unrealized gains of self-issued cryptocurrencies from taxation, draws positive acclaim for promoting a healthy crypto startup environment.

As the Asian markets wake up to a fresh week, Bitcoin persists in its rally above the $30K threshold. The leading digital currency’s robustness is believed to be propelled by growing investor optimism following multiple spot Bitcoin ETF applications. Concurrently, Ether, the second-largest digital asset, has recorded an increment of 1.3% to reach $1,901.

Bitcoin’s upswing comes on the heels of its most potent weekly performance since March, as suggested by CoinDesk Indices’ Bitcoin Trend Indicator (BTI). This index denotes a “significant uptrend,” as Bitcoin’s price surged 15.6% in the last week and 17% over the past fortnight. Market analysts, including BitBull Capital’s Joe DiPasquale, maintain that Bitcoin’s bullish trend and breaking through the $30K resistance points to mid to long-term market opportunities.

However, potential volatility is also expected.

“Alts are now also starting to rally. But the market is likely to remain volatile in the coming weeks,”

DiPasquale said. According to CoinGlass data, short position traders had a minor advantage over the weekend, implying a possibility for the fluctuating market scenario.

Amid this, the decision from the Securities and Exchange Commission (SEC) regarding the Bitcoin ETFs from BlackRock, Invesco, and WisdomTree remains eagerly anticipated. If approved, the move could mirror the success seen following the Ontario Securities Commission’s approval of the first Bitcoin ETFs listed in Toronto in 2021.

Switching focus to Japan, the country has made significant strides in crypto regulation. The National Tax Agency of Japan has amended the nation’s tax law to exclude unrealized gains from self-issued cryptocurrencies from taxation. This landmark change has been hailed as a tremendous relief for crypto startups, who often compensate team members with tokens reflecting the sector’s inherent risk.

Taxing unrealized gains proved detrimental to fostering a dynamic, successful environment for entrepreneurship, as evident in Norway. Recognizing this, Japan has built a specific, crypto-native solution. This move continues to establish Japan as a pioneering nation in cryptocurrency rules and regulations, creating a robust framework for crypto exchanges.

Reflecting on Japan’s forward-thinking approach, Rahul Advani, Ripple’s policy lead for Asia, commended the country’s clear digital asset taxonomy and commitment to consumer protection. He cited Japan’s laws regarding the segregation of customer funds on exchanges as an example, ensuring exchange customers are prioritized above other creditors in bankruptcy situations.

However, such measures are yet to be observed in the U.S., where there’s no specific provision to prevent the taxation of tokens issued by crypto companies. The U.S. Securities and Exchange Commission remains reticent on advising whether such issued tokens are securities, hindering further policy development in the country. Despite these challenges, Bitcoin’s continued rally and Japan’s crypto-friendly policies offer much promise for the future of cryptocurrencies.