Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
All eyes are on Bitcoin hitting $72,000 as an analyst suggests this will act as a catalyst for mass liquidations and a move past the psychological $75,000 barrier. United States-based spot Bitcoin exchange-traded funds (ETFs) saw their second-best net inflow day, and FTX reached a settlement with the U.S. Internal Revenue Service (IRS) on an outstanding tax bill.
Bitcoin price at $72,000 is the “fuse” to reach new ATH
If the price of Bitcoin BTC $70,871 reaches $72,000, it would act as a “fuse,” triggering the breakthrough of the $75,000 psychological barrier.
Bitcoin hitting $72,000 would spark a wave of mass liquidations, paving the way to new all-time highs, according to analyst Willy Woo.
Woo wrote in a June 5 X post to his 1.1 million followers:
“Tapping $72k is the fuse set to start a liquidation cascade. $1.5b of short positions ready to be liquidated all the way up to $75k and a new all-time high.”
Bitcoin rose 3.15% in the 24 hours leading up to 8:05 am UTC on June 5 to trade at $71,124. The world’s first cryptocurrency is up 4.8% on the weekly chart, according to CoinMarketCap data.
U.S. Bitcoin ETFs see second-largest inflow day
U.S.-based spot Bitcoin ETFs saw their second-largest ever joint net inflow day of $886.6 million, according to Farside Investors data.
Farside data shows that Fidelity won the day with $378.7 million of inflows, BlackRock was second with $274.4 million of inflows, and the ARK and 21Shares joint fund took bronze with $138.7 million of inflows.
Grayscale’s Bitcoin ETF, which has seen $17.8 billion in net outflows since January, saw a rare inflow day at $28.2 million, the seventh time it’s seen an inflow since it converted from a closed-end fund to a spot ETF on Jan. 11.
It comes as Bitcoin has rallied 2.9% to $71,000 over the last 24 hours, according to CoinGecko.
FTX settles with IRS
Crypto exchange FTX has reached a $200 million settlement with the IRS on outstanding taxes, removing a major hurdle from the bankruptcy process.
Based on the June 3 filing, FTX and the IRS agreed to settle a $24 billion tax dispute, pending court approval Initially, the IRS claimed that FTX owed the government more than $44 billion in taxes.
Under the proposed settlement, the IRS would receive $200 million in a priority tax claim paid within 60 days of the plan’s approval. It would also collect an additional $685 million as a subordinated claim.
According to the filing, FTX doesn’t deny owing taxes but disputes the amount it needs to pay. The exchange has argued that it shouldn’t be taxed on funds that were fraudulently used by former CEO Sam Bankman-Fried, who was sentenced to 25 years in prison. It also disagrees with employment-based taxes on income paid to Bankman-Fried and other executives.
For its part, the IRS doesn’t agree with FTX’s arguments and has “informed the Debtors that absent a settlement it would pursue these and other theories to impose significant tax liability.”
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