Connect with us

Bitcoin

A Post-Tax Day Bounce For Bitcoin?

Bitcoin prices traded slightly lower in U.S. trading Friday, extending a slide that has seen the largest digital currency shed roughly two-thirds of its value since December. Some bitcoin bulls believe the cryptocurrency is due to rally this month with an interesting catalyst sparking it higher.

That catalyst is Tax Day, which is fast-approaching on April 17th. Tom Lee, the co-founder of Fundstrat and one of the most ardent bitcoin bulls, estimates investors owe $25 billion in taxes on bitcoin and have been selling the digital currency in advance of Tax Day to, well, pay their taxes. Lee believes the selling pressure could slow after April 17th.

The US Internal Revenue Service (IRS) requires users of bitcoin to record all of their transactions in the cryptocurrency, regardless of the size.

“If the bitcoins were held for more than a year, long-term capital gains tax rates are applied. In the US, long-term capital gains tax rates are 0% for people in 10%-15% ordinary income tax rate bracket, 15% for people in the 25%-35% tax bracket, and 20% for those in the 39.6% tax bracket,” according to Investopedia.

Sourcing That $25 Billion

“The $25-billion tax liability accounts for 20 percent of the expected total tax payments for capital gains of around $168 billion in 2017. The projected tax liability is based on taxable gains for crypto of $92 billion,” Reuters reports, citing Lee’s Fundstrat.

Other countries have recently been unveiling their tax treatments of cryptoccurrencies.

“The South African Revenue Service (SARS) will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income,” said SARS, that country’s equivalent of the IRS, in a recent statement. “The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued. Failure to do so could result in interest and penalties.”

As for the post-tax day potential of bitcoin, that remains to be seen, but Fundstrat did reiterate a $20,000 price target on bitcoin.

Comments

Bitcoin

Bitcoin Price Hits 8-Month High Close to $7K

There seems to be no stopping the bitcoin (BTC) freight train.

The leading cryptocurrency by market value jumped to $6,964 at 06:00 UTC today on Bitstamp, the highest level since Sept. 5, 2018, having found acceptance above the crucial 200-week moving average at $6,500 in early Asian trading hours.

Prices have set a new multi-month high for the fourth straight day and have rallied in excess of over 70 percent in the last 5.5-weeks.

Notably, with the sharp rally, the 100-day MA of bitcoin’s price has moved above the 200-day MA. That is the first bullish crossover between the two averages since July 2015.

The development further confirms the long-term bearish-to-bullish trend change signaled by several technical indicators, including a golden crossover, over the last few weeks.

The moving average studies, however, are lagging indicators and have limited predictive abilities, as they take old price history into account.

Even so, investors may take heart as a similar crossover in July 2015 was followed by a 2.5-year bull run.

Continue Reading

Binance

Binance got hacked for $40 Million Dollars in Bitcoin, is your money safe?

The short answer is Yes, your money is safe.
Fortunately, Binance was prepared and your money is safe in due to SAFU. Meaning the ‘Secure Asset Fund for Users’ will cover this completely. This is the very reason Binance is self-insured.

Technically speaking the Binance exchange itself was not hacked, it has officially been stated by Binance that a large number of API Keys, 2FA Codes, and other user info was acquired by said hackers utilizing techniques such as phishing, viruses and other types of digital attacks. This means that it was user accounts that were compromised by the users themselves and not Binance.

In an age where digital security is more important than ever, this is a stark reminder to keep your data safe and secure at all times.

TLDR About the Binance Hack:

• 7000 BTC was stolen
• The BTC was stolen from Binance’s Hot Wallet
• Binance’s Hot Wallet holds only 2% of their total holdings
• All funds are insured and do not affect users

Continue Reading

Bitcoin

Why Is Bitcoin Not Taking Off In 2019?

PEAK BITCOIN

As you are likely referring to the price, Bitcoin is quite frankly doing what it has always done, as in go through a cycle. Right now it appears to be in the accumulation phase before it starts to climb and then vault higher than it was before.

If you take a look at this Bitcoin chart and go back to what happened in the run up to late 2013, it extremely similar to 2017, and then what happened directly after in 2014, 2015 and 2018, 2019 is quite similar.

 

We can see from the chart that there was a prior accumulation phase happening throughout 2015 and 2016 after the drop in 2014 subsequent to the spike in 2013. But this is dwarfed by the spike that happened in late 2017.

The other point to note is that Bitcoin is not unique when it comes to this cycle, it has happened before in many different markets. It’s just that Bitcoin is a new technology phenomenon that is following a very similar path. Of course we can never be certain as to how long the current phase will last, but when it’s done I suspect a lot of people will look back once again and wish they had accumulated during this phase.

Finally, whether it still has further to drop or not won’t really have any substantive bearing on the ultimate long term trajectory in our honest opinion.

Continue Reading

TRADE CRYPTO

BUY BTC/LTC/ETH

STORE YOUR CRYPTO

Ledger Nano S - The secure hardware wallet

ADVERTISEMENT

Trending