Cryptos Are On A Roll, Dogecoin At $0.25

“Compromise” is the word of the day for cryptos, as the U.S. Senate has reached an agreement on the topic of crypto taxation. As you recall from last week, the new infrastructure spending bill included provisions addressing crypto tax reporting. Since then, these items have stimulated a voracious debate and now an apparent compromise. Subsequently, everything from Bitcoin BTC (+4.91%) to Dogecoin (+4.97%) have seen a significant uptick in action.

Today’s compromise addresses the verbiage defining what a cryptocurrency “broker” actually is. Originally, the amendment was ambiguous and suggested that a crypto broker was pretty much anyone involved in crypto. According to Senator Pat Toomey (R-Pa.), this issue has been remedied:

• “Our solution makes clear that a broker means only those persons who conduct transactions on exchanges where consumers buy, sell, and trade digital assets.”

• “It ensures that the [infrastructure] bill does not sweep in software developers, crypto transaction validators, node operators, or other non-brokers.”

At this point, it appears that anyone dubbed a “crypto broker” will be subject to the $10,000 IRS reporting requirement. The bill is expected to become law Tuesday morning.

For Dogecoin, the news has posted a nice opening-week rally from the $0.20 area.

Dogecoin (DOGE/USD) Finally Breaks From $0.20

If you toggle the dynamic chart below to a daily setting, you can see just how important the $0.20 level has been to Dogecoin. DOGE traded in this vicinity since mid-July — over the weekend, it finally broke containment.

Overview: As we head toward the Tuesday session, a bullish bias is warranted for Dogecoin. Yesterday’s pullback has been pared by today’s gains, which is a positive sign. Barring any new developments, it won’t come as a surprise if DOGE enters heavy rotation near $0.25 for the remainder of the week. 

ABOUT THE AUTHOR See More

Shain Vernier

US Analyst

Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.

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