Bitcoin Price Prediction: BTC at $57,520 Amid FOMC Updates and Roger Ver Tax Fraud Allegations

Bitcoin Price Prediction

During the Asian session, Bitcoin (BTC/USD) trades at $57,520, reflecting a 1.25% decrease. This movement is positioned below the pivotal $59,328 mark and suggests a cautious, bearish outlook for the cryptocurrency. This price prediction hinges on key resistance and support levels that could dictate Bitcoin price prediction.

Tax Fraud Allegations Against Roger Ver, Formerly Known as “Bitcoin Jesus”

Roger Ver, an early supporter of Bitcoin and advocate for Bitcoin Cash (BCH), faces indictment by the U.S. Department of Justice (DOJ) for allegedly evading taxes. The DOJ announced that Ver was arrested in Spain during the weekend, and the U.S. intends to request his extradition.

The charges relate to actions in 2017 when Ver, having relinquished his U.S. citizenship to become a resident of St. Kitts and Nevis, is said to have sold tens of thousands of bitcoins, amassing approximately $240 million.

Despite his expatriation, Ver was reportedly still required to declare his earnings and pay taxes on profits linked to U.S. entities.

“Don’t expect bad people to do good things”

— Roger Ver (@rogerkver) April 25, 2024

Accusations: Ver is charged with failing to file tax returns and not paying taxes on capital gains from selling assets after giving up his U.S. citizenship.
Legal Requirements: Allegedly, he did not report income or taxes due on distributions from U.S. companies MemoryDealers and Agilestar.
Past Legal Troubles: Ver previously pleaded guilty and was imprisoned for selling explosives on eBay.

According to the DOJ, Ver hid from his accountant the fact that he had received and sold bitcoins from MemoryDealers and Agilestar in 2017.

Consequently, his tax returns for that year did not disclose any profits or tax liabilities from these sales. Ver’s recent cryptic post on X, “Don’t expect bad people to do good things,” seems to comment on his current predicament.

Simplified Explanation of the Federal Reserve’s Recent Policy Update

On Wednesday, the Federal Reserve decided to keep interest rates unchanged, continuing the same policy since July 2023. However, a significant change is on the horizon.

Starting in June, the Fed plans to scale back its quantitative tightening (QT) program. This program involves selling off assets to reduce the money supply and potentially increase interest rates, aiming to control economic inflation.

One of the Biggest Surprises from Yesterday’s FOMC is that the fed will slow down on Their Quantitative Tightening (QT) starting June. According to the Chicago Fed Financial Conditions are Easing in the US . This Means Risk On is coming back. Bonds dropped badly on this news.

— Yusuf (@YusufTrader1) May 2, 2024

This adjustment caused U.S. Treasury yields, which affect things like mortgage and loan rates, to drop by 0.05 percentage points for both the 10-year and 2-year bonds.

Here’s what’s important:

Background: From 2020 to 2022, the Fed bought a large amount of government bonds to lower interest rates and aid economic recovery post-pandemic.
Change in Strategy: Facing rising inflation in mid-2022, the Fed started selling these bonds. It currently allows $60 billion in Treasuries to mature monthly without renewal, pulling back money from the economy.

Jamie Dimon, CEO of JPMorgan Chase, highlighted in his shareholder letter the unprecedented scale of QT and its potential impacts, expressing concern over draining more than $900 billion annually from the economy.

The last major QT in 2019 led to a shortage of bank reserves, causing a “repo crisis” where overnight loan rates between banks surged, requiring Federal intervention to stabilize the situation. This history underscores the complex effects and potential risks of large-scale quantitative tightening.

Bitcoin Price Prediction

In today’s technical analysis of Bitcoin (BTC/USD), dated May 2, 2024, the cryptocurrency is trading at $57,520, marking a decrease of 1.25%. Bitcoin is currently positioned below its pivot point of $59,328, suggesting a bearish outlook in the short term.

The key resistance levels to watch are $61,698, followed by $64,649 and $67,065. Should Bitcoin rebound, crossing these thresholds could signal a shift to a more bullish trend.

Bitcoin Price Prediction – Source: Tradingview

Conversely, immediate support is found at $56,624, with further cushions at $55,054 and $52,995. If these levels are breached, it may intensify the selling pressure.

Technical indicators reinforce the bearish sentiment; the Relative Strength Index (RSI) stands at 34, and the 50-Day Exponential Moving Average (EMA) is at $61,856, both suggesting potential downward momentum unless Bitcoin can sustain a move above $59,328.

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