Question 1

Why did Bitcoin and Ethereum rebound this week?

Accepted Answer

The rebound was driven largely by improving sentiment in tech stocks, reduced selling pressure after last week’s liquidation events, and renewed institutional demand. As equities strengthened, Bitcoin and Ethereum followed, reflecting their ongoing correlation to major tech indexes.

Question 2

Why are stablecoins gaining a larger share of the crypto market?

Accepted Answer

Stablecoins now represent nearly 9% of the total crypto market because investors are using them as a safe haven during volatility. Clearer regulations, increased institutional adoption, and the use of stablecoins for cross-border payments, DeFi, and remittances have also accelerated their growth.

Question 3

What is the Genius Act, and why does it matter for crypto?

Accepted Answer

The Genius Act is the first major U.S. federal legislation regulating stablecoins. It sets clearer rules for issuance, reserves, and oversight. This regulatory clarity increases investor trust and has encouraged more capital to flow into stablecoin markets and regulated crypto platforms.

Question 4

What is Form 1099-DA and how does it affect crypto investors?

Accepted Answer

Form 1099-DA is a new IRS reporting requirement launched in 2025. Crypto brokerages must now issue this form to report gross proceeds from digital asset sales. Beginning in 2026, the form will also include cost basis information, making crypto taxes similar to stock market reporting.

Question 5

How will Nasdaq’s tokenized securities work?

Accepted Answer

Nasdaq plans to allow traditional stocks and ETPs to exist in tokenized form on blockchain. These still represent the same underlying share, with the same rights and protections. Tokenization simply offers investors the option to settle and hold their assets on-chain for greater efficiency and utility.

Question 6

What benefits does tokenization offer to investors?

Accepted Answer

Tokenization can improve settlement efficiency, reduce operational costs, enhance audit trails, and unlock new use cases through smart contracts. Over time, it may enable faster collateral movement, automated corporate actions, and more flexible trading hours.

Question 7

How should new investors approach the current crypto environment?

Accepted Answer

New investors should monitor regulatory changes, understand tax obligations, diversify across assets, and consider stablecoins as part of a risk-managed strategy. Staying informed about institutional trends—like Nasdaq’s tokenization initiatives—can also provide an edge in identifying future opportunities.

Tag: etherium

Crypto Market Rebounds — What Investors Should Know