The cryptocurrency market has been in a state of flux over the past decade, and 2022 has proven to be a particularly challenging year for traders.

Bitcoin is a digital type of money that enables users to conduct transactions without the need for a centralized authority, such as a bank.

Denmark's Supreme Court has ruled that profits from Bitcoin trading are taxable in certain cases. The ruling is a significant development for the cryptocurrency industry, as it clarifies the legal status of Bitcoin and other digital assets in Denmark.

The recent pause in US interest rate hikes could potentially kickstart a Bitcoin rally in May. The article notes that historical charts indicate a pattern of Bitcoin price increases following interest rate pauses by the US Federal Reserve.

Bitcoin (BTC) briefly spiked to a nine-month high of $29,170 on Bitstamp on March 30, but quickly faced rejection and fell back to its starting point, leading traders to call it a "fakeout." Market participants remained cautious, and some traders referred to the move as a "deviation." Some traders noted that current trading volumes were at their lowest for 2023, potentially indicating a warning sign. Trading suite Decentrader noted that shorts currently had the upper hand, with short perps potentially profitable and being paid by longs to keep their positions open.

Bitcoin (BTC) could experience significant price swings heading into the weekend as options contracts worth billions of dollars tied to the cryptocurrency are set to expire on Friday. The quarterly expiry on crypto options exchange Deribit comprised over 81,000 call options worth $2.24 billion and 60,000 put options worth $1.73 billion. Market makers, who provide liquidity to an order book by creating buy and sell orders, are often forced to hedge their short gamma exposure by purchasing the cryptocurrency in the spot or futures market, which could bring more upside volatility. Liquidity conditions have worsened, making it hard for traders to execute large deals without causing price movements. At press time, bitcoin changed hands near $28,650, a 1% gain on the day.

On-chain data firm CryptoQuant has analyzed Binance's health after the US CFTC lawsuit accused the exchange and its CEO CZ of violating crypto trading and derivatives rules. The analysis found that Binance's Bitcoin and Ethereum reserves remained healthy and even increased from December levels. Binance's net outflows of Bitcoin, Ethereum, and stablecoins have also remained within historical ranges, with recent Bitcoin outflows relatively low compared to earlier events. Bitcoin and Ethereum prices are trading above $28,000 and $1,800 respectively amid positive sentiment in the market.

Bitcoin’s recent price dip seems to be short-lived, as the asset spiked to and beyond $29,000 earlier today.

Bitcoin has rallied more than 17% in the past two weeks, displaying resilience amid regulatory headwinds and suggesting the asset could be in the early stages of a bull market. However, on-chain data suggests some traders and whales are taking profits, which may fuel a decline in the coming days. Short-term holders are taking profits, there’s an increase in spending activity in large bitcoin holders (whales), and price valuation momentum is increasing to overvaluation territory. Nevertheless, the firm said bitcoin remains “well inside a bull market,” suggesting any short-term decline is not indicative of a widespread drop.

The Hollywood icon was relentlessly mocked for appearing in the ad in 2021, which was released just before the crypto markets plummeted.