Italy increases tax to 42%! Bitcoin soars against the trend
Italy plans to increase the capital gains tax rate on Bitcoin from 26% to 42% to cope with the fiscal deficit and fulfill its campaign promises. Although high tax rates in other countries such as India have led to a sharp drop in cryptocurrency trading, the Italian government still decided to take this measure.
Bitcoin prices rose against the trend
Against the backdrop of the EU's preparations to implement the MiCA cryptocurrency regulatory plan, Bitcoin prices rose against the trend, breaking through $68,000 at one point, the highest level since July 30, up more than 3% on the day and 17% in the past month.
Institutional confidence in Bitcoin
US stocks' pre-market gains widened, with CleanSpark (CLSK.US) up nearly 5%, MARA Holdings (MARA.US) up more than 4%, MicroStrategy (MSTR.US) and Coinbase (COIN.US) up more than 3%. Larry Fink, CEO of asset management company BlackRock, whose Bitcoin holdings have reached $25 billion, said that Bitcoin is unlikely to be affected by the results of the upcoming US presidential election and predicted that the flagship cryptocurrency will show an upward trend. In addition, IBIT's asset management scale has also reached 375,169 Bitcoins, and a net inflow of $288.8 million on October 15, 2024, with a cumulative historical net inflow of $22.06 billion.
Interpretation of the Deputy Minister of Finance of Italy
Maurizio Leo, Deputy Minister of Finance of Italy, mentioned in a conference call that the cabinet of Prime Minister Giorgia Meloni decided to increase taxes because the "phenomenon" of Bitcoin is spreading. This decision comes as the European Union prepares to implement the MiCA cryptocurrency regulatory plan, which is expected to be fully implemented by the end of this year.
Summary
Despite the challenges of stricter regulation, Bitcoin prices still show strong upward momentum, and investors' interest in digital assets remains unabated. The activeness of the cryptocurrency market and the firm confidence of institutional investors provide strong support for the future development of Bitcoin.
