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Stability in Cryptocurrencies & Biden’s Tax Plan

During Thursday’s trading session stock markets stabilized. The Nasdaq broke above the 50-day moving average, the SP&500 was up 0.1%, oil suffered its biggest weekly drop since March, the dollar weakened, and cryptocurrencies seemed to steady after their plunge in recent days.

The stability in cryptocurrencies comes on the same day that the Federal Reserve (Fed) Chairman Jerome Powell commented on the possibility of the US creating a digital currency. The Fed chairman expects the Fed to release a digital paper analyzing the pros and cons of a digital currency of its own. Although Powell did not confirm the creation of the cryptocurrency, he did stress that “the paper represents the beginning of what will be a thoughtful and deliberative process”.

Cryptos in the spotlight

Yesterday, in addition to Powell’s statements, the US Treasury Department released a report on Biden’s plan to raise $700 billion over the next decade and $1.6 trillion 10 years after that through the Internal Revenue Service. The plan also mentions the obligation of businesses to report transactions of $10,000 or more in cryptocurrencies.

Today, the release of US housing data, UK and Canadian retail trade figures, as well as an address by Christine Lagarde President of the European Central Bank are scheduled to take place. In addition, a meeting of European finance ministers and central bank representatives is scheduled for tomorrow, May 22. Traders are likely to keep an eye on the Canadian dollar, US dollar, British pound, and euro.

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