The U.S. Internal Revenue Service head called for lawmakers to provide authority for tighter reporting rules on crypto transfers.
On Tuesday, IRS chief Charles Rettig said that Congress needs to provide clear statutory authority for the tax agency to collect information on cryptocurrency transfers valued at over $10,000 that largely go unreported.
Rettig said before the Senate Finance Committee that cryptocurrency market capitalization is over $2 trillion, with more than 8,600 exchanges worldwide. “By design, most crypto virtual currencies are designed to stay off the radar screen, so we will be challenged right now.”
Earlier a spokesperson for British fund manager Ruffer Investment Management confirmed that it exited its bitcoin bet in April with a $1.1 billion profit amid worries over risk after quick gains in the cryptocurrency’s price.
In November, Ruffer made its bitcoin bet in what was then one of the largest signals of rising institutional interest in the digital currency. By mid-December, it was worth around 550 million pounds ($745 million).
“Long term, we remain interested in digital assets and the role they can play in real wealth preservation,” the spokesperson said. “In the short term, following the sharp increase in the bitcoin price, we felt bitcoin was exhibiting more risk.”
Ruffer’s bitcoin profit was first reported by The Sunday Times.
Bitcoin’s recent bounce has yet to dispel doubts about its vulnerability.
The cryptocurrency has jumped 10% over two days and was trading at $36,993 as of 9 a.m. In London on Thursday. While the momentum may cheer bulls, a JPMorgan Chase & Co. The team said backwardation in the futures market — where the spot price is above futures prices — is a reason for caution.
“We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note. They added that Bitcoin’s relatively depressed shares of total crypto market value are another concerning trend.
Traders are waiting for the next catalyst to break Bitcoin from a $30,000 to $40,000 range that has been in place since a collapse from a record of almost $65,000 in April. Public criticism of the digital currency’s energy needs by tycoon Elon Musk and a Chinese regulatory crackdown are among the obstacles. The bulls got a bit of a lift Wednesday after El Salvador made Bitcoin legal tender.
The June 9 analysis from JPMorgan looked at the 21-day rolling average of the 2nd Bitcoin futures spread over spot prices. The backwardation this showed is an “unusual development and a reflection of how weak Bitcoin demand is at the moment from institutional investors” who use contracts listed on the Chicago Mercantile Exchange.
The Bitcoin futures curve was in backwardation for most of 2018, a year when the cryptocurrency fell 74% after a spectacular boom, JPMorgan said.
Meanwhile, Bitcoin’s share of the overall crypto market value is 42% currently, down from roughly 70% at the start of the year, according to data from tracker CoinGecko. For some analysts, that is in part a sign of retail-driven investor froth lifting other coins.
Bitcoin’s share may need to top 50% to make it easier to argue the current bear market is over, the JPMorgan strategists said.
Bitcoin Short (Sell) Enter At: 35618.86 T.P_1: 32968.54 T.P_2: 28762.68 T.P_3: 23471.94 T.P_4: 18095.01 T.P_5: 12736.75 T.P_6: 4190.84 S.L: 44848.04
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.
