Italy Raises Bitcoin Tax Rate, Crypto Market Defies Trend, BlackRock Holds $25 Billion in Bitcoin

Italy Raises Bitcoin Tax Rate, Crypto Market Defies Trend, BlackRock Holds $25 Billion in BitcoinThe Italian government plans to increase the capital gains tax rate on Bitcoin from 26% to 42% to address its fiscal deficit and fulfill campaign pledges. This decision has raised market concerns

Italy Raises Bitcoin Tax Rate, Crypto Market Defies Trend, BlackRock Holds $25 Billion in Bitcoin

The Italian government plans to increase the capital gains tax rate on Bitcoin from 26% to 42% to address its fiscal deficit and fulfill campaign pledges. This decision has raised market concerns. While the effectiveness of cryptocurrency taxation in other countries is not always significant, as high taxes in India have led to a sharp decline in trading volume, the Italian government remains committed to implementing this measure.

Meanwhile, the EU is nearing the full implementation of the MiCA cryptocurrency regulatory framework, which is expected to come into effect by the end of this year. Despite the tightening of regulations, Bitcoin has defied the trend and surged, breaking through $68,000, reaching its highest level since July 30th, with a daily gain exceeding 3%. Over the past month, Bitcoin's value has risen by 17%, reflecting the continuous interest in cryptocurrencies.

In a conference call, Maurizio Leo, Deputy Minister of Finance, mentioned that the cabinet of Prime Minister Giorgia Meloni has decided to raise the tax rate due to the "spreading phenomenon" of Bitcoin. This decision has been made in the context of the EU's preparation to implement the MiCA cryptocurrency regulatory framework.

Besides Bitcoin price surges, cryptocurrency concept stocks have also performed well. CleanSpark (CLSK.US) rose nearly 5%, MARAHoldings (MARA.US) gained over 4%, MicroStrategy (MSTR.US) and Coinbase (COIN.US) rose over 3%. These figures indicate that despite regulatory challenges, the cryptocurrency market remains active, and investors continue to show interest in digital assets like Bitcoin.

It is noteworthy that asset management company BlackRock has accumulated $25 billion in Bitcoin holdings, demonstrating its strong confidence in the cryptocurrency. BlackRock CEO Larry Fink said that Bitcoin is unlikely to be affected by the outcome of the upcoming US presidential election, forecasting an upward trend for this leading cryptocurrency.

IBIT's asset management scale also reached 375,169 Bitcoin, with net inflows of $288.8 million on October 15th, 2024, bringing the cumulative historical net inflow to $22.06 billion. This marks the second consecutive day of net inflows, following a previous gain of $79.5 million. This data further reinforces the continued investor interest in Bitcoin and other digital assets.

Despite concerns stemming from Italy's decision to raise the Bitcoin tax rate, the cryptocurrency market's overall trend remains positive. Bitcoin prices broke through $68,000, marking a multi-month high, cryptocurrency concept stocks have generally risen, and institutional investors like BlackRock and IBIT continue to increase their Bitcoin holdings. All this suggests that the interest in Bitcoin and other digital assets remains strong. Moving forward, the implementation of the EU's MiCA cryptocurrency regulatory framework will usher in a new stage of development for the cryptocurrency market.

Please note that the above content is for informational purposes only and does not constitute investment advice.