Bitcoin's Potential Surge to $72K Could Ignite Mass Liquidations; FTX Settles $200M Tax Dispute With IRS
Summary:
Bitcoin's surge to $72,000 could trigger mass liquidations and push the digital currency past the $75,000 mark, suggests analyst Willy Woo. U.S. Bitcoin ETFs experienced their second-largest net inflow of $886.6 million, with FTX agreeing to a $200 million settlement with IRS over an outstanding tax dispute.
When Bitcoin reaches $72,000, it's speculated to ignite a series of mass liquidations, possibly propelling the digital asset beyond the $75,000 psychological mark. This predictive analysis comes from renowned analyst Willy Woo. Woo's tweet on June 5 to his 1.1 million followers hinted that surpassing the $72K mark would catalyze $1.5 billion of short positions to liquidate, forcing a rally up to $75K and creating a new record high.
In the 24 hours before 8:05 am UTC on June 5, Bitcoin gained 3.15%, trading at $71,124. This gain represents a 4.8% rise week over week, based on CoinMarketCap data.
Meanwhile, in the U.S., Bitcoin exchange-traded funds (ETFs) recorded their second-highest daily net inflow, reaching $886.6 million, suggests data from Farside Investors.
Fidelity led the inflow with $378.7 million, followed by BlackRock at $274.4 million. A joint fund by ARK and 21Shares was third with $138.7 million. Grayscale's ETF, which has witnessed $17.8 billion in net outflows since January, experienced a rare inflow day, clocking in $28.2 million.
In another development, cryptocurrency exchange FTX has agreed to a settlement of $200 million with the IRS regarding an unsettled tax issue. This development marks a critical milestone in the ongoing bankruptcy process. FTX disputed the IRS, which initially claimed that the exchange owed over $44 billion in taxes.
The proposed settlement has stipulated a $200 million priority tax claim to be paid within 60 days of approval. An additional $685 million would be collected as a subordinate claim.
Despite not denying the tax debt, FTX disagrees with the owed amount, arguing that it should not be taxed on funds used fraudulently by its former CEO, Sam Bankman-Fried, who is now serving a 25-year prison sentence. FTX has also contested employment-based taxes on income paid to Bankman-Fried and other executives. The IRS remains firm on their stand and intends to impose significant tax liability if a settlement isn't reached.
Contributions to reports come from Geraint Price, Sam Bourgi, and Felix Ng.
Published At
6/5/2024 3:50:32 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.