Here's What Happened in Crypto Market Today: BTC Hits $118K

Crypto Market Rally: Bitcoin, Ethereum Surge as Sweden Eyes Reserves

The crypto market has seen a strong uptick, rising 3.95% in the past 24 hours and extending a 4.3% weekly gain. Bitcoin (BTC) is trading above $118,000, marking a 3% surge. Ethereum (ETH), recovering alongside the broader market, is now above $4,300. 

Other altcoins like XRP, SOL, and BNB have also experienced significant gains, reflecting a broader positive trend within the cryptocurrency space.

Crypto Market Sees Major Upsurge Amid U.S. Shutdown Fears

This rally is being supported by a number of factors. One of the main factors is the increasing risk-on, and cryptocurrency is no longer tied to the traditional equities. With the threat of U.S. government shutdown trappings on the conventional markets, digital assets are enjoying investor interest. 

Such a change of mood has contributed to the growth of the cryptocurrency industry, as buyers are now looking for more risky investments such as BTC and ETH.

Etherem, especially, has experienced a mass breakout. The ETH and the price increased by 6.7% to $4,414 due to heavy ETF inflows of approximately 80 million in only three days and increased activity of whales. With this, there is an interesting rise in leverage within the market.

 Perpetuals open interest spiked 17%, reaching $1.27 trillion, while positive funding rates (+0.0055%) suggest a bullish positioning for the near future. These factors combine to create a solid foundation for continued growth in the cryptocurrency space.

Sweden Explores the Idea of a Bitcoin Reserve to Counter Inflation

Sweden is looking into a fresh proposal by its parliament members to explore the idea of developing a Bitcoin reserve. Sweden Democrats Dennis Dioukarev and David Perez have put forward the idea to fight inflation and diversify Swedish national assets.

The proposal emphasizes the fact that countries such as the United States have become inclined to have Bitcoin as a strategic resource. Dioukarev and Perez believe that Sweden must join the companies of countries that investigate the possibilities of Bitcoin to protect their financial market.

The lawmakers proposed funding the reserve with the Bitcoin that they seized as part of the proposal. Nevertheless, the information concerning who would control the reserve is not amounted to. This is a new concept, though the trend of investigating this digital asset indicates that Sweden wants to adopt Bitcoin in its economic system.

US Lawmakers Debate Tax Rules for Crypto Amid Government Shutdown

The recent Senate Committee on Finance hearing was a hot spot on the cryptocurrency tax landscape in the US. The legislators talked about the possible changes, one of which was a tax exemption on crypto transactions below 300. 

This is aimed at promoting broader commercial application of digital currencies and discouraging the obstruction to innovation in the industry.

Coinbase attorney Lawrence Zlatkin also advised the committee to look at the implementation of a de minimis tax exemption, which might aid in using crypto to make day-to-day payments. These negotiations were accompanied by the committee looking into the means to counter the estimated tax gap of 700 billion to close with stricter reporting of cryptocurrency transactions. These debates are the result of uncertainty on the taxation of the expanding crypto market.

Roman Storm Seeks Dismissal of Tornado Cash Conviction

The co-founder of the decentralized crypto mixer Tornado Cash, Roman Storm, has submitted a motion demanding the removal of his conviction. His indictments include transmitting money illegally without a license, although the defense on behalf of Storm states that the prosecution did not demonstrate that he had the desire to participate in criminal acts. His counsel says that the case is grounded on negligence, and not any criminal offense. The result of this motion may have a tremendous effect on the legal status of crypto projects in the future.