Hello, and welcome to another week's edition of Overbit News, where we cover the most important news stories of the week in the global financial markets. This week is another continuation of three main topics that have been coming up as hot topics in Q4 of 2020. These topics include increasing crypto regulation by countries, a massive rally in crypto markets, and ongoing Forex fluctuations mostly caused by Covid-19 recovery and ongoing Brexit talks.
We're covering increased regulation by the Israeli government of their citizen's crypto holdings in our first topic of the week. According to the latest Globes report, the Israeli Tax Authority (ITA) is now requiring residents to disclose their cryptocurrency holdings for tax purposes. The ITA states that digital currency investors are subject to a 25% tax on capital gains as long as their activity is not transformed into a commercial enterprise. These new regulations of citizens' crypto holdings will surely be a theme by all countries worldwide in 2021.
Our next story of the week is covering Ethereum and its recent $700 crossing, a new high since May 2018. The catalyst for the rise of Ethereum is mostly linked to the meteoric growth of Bitcoin this year and the launch of Ethereum 2.0 a few weeks back on December 1st, 2020.
Although this year Bitcoin has reached a new all-time high (ATH), ETH is still short 50 per cent of it's an all-time high. Nevertheless, we could see ETH catch up with its ATH sooner than later, as a recent report stated that Ethereum-native protocols such as Aave, Synthetix, and Uniswap are currently at $13.3 billion, and over 1 million users are now. These catalysts show that Ethereum could be well on its way to a new all-time high.
Closing out this week's edition of Overbit.com, we're covering the British Pound Sterling, as it drops 0.50% against the Euro and 0.40% against the US Dollar. At the beginning of a holiday-short week, the British Pound dropped, with losses coming amid the optimistic news last Thursday that the EU and the UK had negotiated a free trade agreement after Brexit. The deal puts an end to years of uncertainty and most of the financial analysts we follow agree that there should be a further advancement in Sterling in the coming days and weeks.
The details of the deal are still unfolding, but we understand that the EU and UK reached a trade deal on Christmas Eve, meaning there will be no tariffs placed on the trade in goods between the EU and UK. However, the trade-in services - which accounts for most UK economic productivity - is mostly excluded from the deal.
Even with Brexit now "sorted", investors are still not confident in the long-term outcome of the UK's economy which is clearly showing in Forex markets, as the GBP/USD slid to 1.3520 and GBP/EUR slid from its opening to 1.1060.
It's continuing to look like the world's crypto-economy is outperforming the world's traditional economy, and that is something that possibly continues as the years carry on. Rest assured, Overbit.com will continue to guide you through these rapidly changing times.