Amidst the potential US government shutdown, bitcoin is experiencing a surge. The digital asset has appreciated by 3.4% over the last 24 hours, exceeding $117,000, a peak not witnessed since mid-September. According to data from Glassnode, this price surge has also boosted bitcoin’s dominance in the crypto market to 59%, up from 57%.
Lee Bratcher, the president and a founding member of the Texas Blockchain Council, shared with Sherwood News that, “Bitcoin is emerging as a safe haven for investors during periods of broader economic instability, mirroring trends observed during the 2008 financial crisis and other similar situations.”
He further cautioned that the future price trajectory of Bitcoin remains uncertain. “While the short term could see a price dip due to investor anxiety, the mid-term outlook suggests improved market liquidity and stronger support for riskier assets,” Bratcher explained.
In related news, preceding the potential shutdown, the Treasury Department and the IRS released preliminary guidelines on Tuesday, addressing and relieving the 15% Corporate Alternative Minimum Tax (CAMT) previously applied to unrealized gains on bitcoin holdings. This announcement positively impacted the shares of Strategy and MARA Holdings, two of the largest corporate holders of bitcoin, leading to an uptick in their early trading activity.
For context, reports from The Wall Street Journal indicate that Strategy possesses $26 billion in unrealized gains. Analyst Lance Vitanza of TD Cowen stated in a research note that this regulatory change “eliminates a notable potential overhang for Strategy.”
Robert Samuels, the vice president of investor relations at MARA, welcomed the news, describing it as “a significant victory for MARA and its shareholders.”
Tim Kotzman, the founder of Bitcoin Treasuries Media, highlighted that this guidance removes the risk of Strategy being taxed on unrealized gains, which could have considerably strained their cash flow. He further added, “From a strategic perspective, this strengthens their capacity to continue expanding their bitcoin treasury strategy without facing increased tax burdens.”
In a separate development, Metaplanet has ascended the corporate bitcoin ownership ranks, following its recent acquisition of 5,268 bitcoin. This purchase elevates the Japanese company to the fourth-largest corporate bitcoin holder, now possessing a total of 30,823 bitcoin.