You can also read this news on COINTURK NEWS: Bitcoin Price Increases as UAE Implements VAT Exemptions

The Bitcoin price increased by 1.42%, trading at $62,650 over the weekend, supported by low volatility. Following a broader market recovery, BTC maintained the crucial $60,000 support level, indicating that buyers are attempting to sustain upward momentum. This recovery coincided with the announcement of VAT exemptions for virtual asset transfers and conversions by the United Arab Emirates Federal Tax Authority (FTA).

UAE and VAT Exemptions

The UAE FTA made significant revisions to the VAT regulations. These changes include exemptions for virtual asset transfers and conversions. This move positions the UAE as an attractive hub for virtual asset investments, potentially easing the tax burden and supporting the operation of crypto-related businesses in the country.

A regional auditing firm noted that the term ‘virtual asset’ in the UAE is classified as “digital representations of value that can be traded or converted and used for investment purposes.”

Bitcoin Price Predictions and Analysis

Over the past four days, Bitcoin price modestly recovered from $59,840 to $62,975, registering over 4% growth. This upward trend is bolstered by the effort to maintain the $60,000 support level as well as the 200-day Exponential Moving Average (EMA). A slight easing of geopolitical tensions in the Middle East has also been beneficial.

However, this recovery has yet to be confirmed, and there remains a possibility of the price retreating back to $60,000 in search of support. If this level holds, BTC’s price could progress towards the target of $80,000. The ongoing consolidation since March 2024 has been challenging for altcoin investors.

Other Market Impacts

The UAE’s Virtual Asset Regulatory Authority (VARA) and Securities and Commodities Authority (SCA) decided to facilitate the licensing and supervision of Virtual Asset Service Providers (VASPs). This development strengthens the country’s crypto-friendly stance and may enhance overall crypto adoption, accelerating investments in leading assets like Bitcoin.

In light of recent developments, market participants closely monitor the impact of the UAE’s new VAT regulations and other dynamics in the cryptocurrency market on Bitcoin prices. Tax advantages and regulatory conveniences may encourage cryptocurrency investments, while market volatility and global geopolitical factors continue to influence price movements.

The post Bitcoin Price Increases as UAE Implements VAT Exemptions appeared first on COINTURK NEWS.