After falling below $34,000 in January, Bitcoin retook the $40,000 level last week, thanks to Nasdaq etching a strong 1.77% gain in the same period. Without Amazon.com’s (AMZN) post-earnings rally, the index would have gained less. Cryptocurrency investors need to remain aware of the positive correlation between the technology index and Bitcoin.
In the month ahead, the market’s nervousness over a mild rate hike will add to the stock market’s volatility. Bitcoin prices will fluctuate as a result. Instead of guessing its near-term price, look ahead for data supporting the currency’s ascent.
Later this month, Coinbase (COIN) will post quarterly results. The cryptocurrency platform will report revenue that indicates the impact of bitcoin price volatility on transaction volumes. Bitcoin investors might consider holding a small position in Coinbase to bet on growing crypto transactions this year.
Last week, Coinbase said it would let users convert their tax refund into cryptocurrency, using TurboTax. This added option will increase the usefulness of crypto. It increases the attractiveness of the platform.
Voyager Digital (VYGVF) said on Feb. 2 that it would invest in the crypto tax reporting platform, CoinLedger. This will simplify tax filing support related to crypto trading on its platform.
