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Don’t Forget About Cryptocurrency Like Bitcoin At Tax Time

Form 1040 may look similar to last year’s return, but there’s one key difference that’s attracting attention: a question about cryptocurrency.

As I reported late last year, early drafts of Form 1040 reflected a new question on the top of Schedule 1, Additional Income and Adjustments to Income (downloads as a PDF). Schedule 1 is used to report income or adjustments to income that can’t be entered directly on the front page of form 1040.

The new question made it onto the final version of Schedule 1:

The question asks: At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

The placement of the question is important. I believe the question is intended to be so conspicuous that it makes it difficult for any taxpayer to argue that they didn’t know that it was necessary to report cryptocurrency transactions.

The Internal Revenue Service (IRS) has made no secret of the fact that it believes that taxpayers are not properly reporting cryptocurrency transactions. An IRS dive into the data showed that for the 2013 through 2015 tax years, the IRS processed, on average, just under 150 million individual returns annually. Of those, approximately 84% were filed electronically. When IRS matched data collected from forms 8949, Sales and Other Dispositions of Capital Assets, which were filed electronically, they found that just 807 individuals reported a transaction using a property description likely related to bitcoin in 2013; in 2014, that number was only 893; and in 2015, the number fell to 802.

But… so what? If you skip over the question or answer it wrong, you can still claim that you made a mistake, right?

Here’s the thing. Even though the question is new, this kind of question certainly isn’t. Tax professionals have watched taxpayers struggle before when answering a similar question about offshore accounts and interests at the bottom of Schedule B. This one:

The IRS can and has taken the position that willfully failing to check the box related to offshores accounts and interests on Schedule B can form the basis for criminal prosecution. Failing to check the box by accident can still result in expensive headaches and draconian penalties. I fully expect a similar result when it comes to cryptocurrency.

So why all the fuss over this new question? The IRS has made cryptocurrency compliance a priority. Last year, the IRS mailed letters to more than 10,000 taxpayers who might have failed to report income and pay the resulting tax from virtual currency transactions or did not accurately report their transactions. This wasn’t unexpected since the IRS campaigns announced in 2018 that they were making noncompliance related to the use of virtual currency one of their targeted compliance campaigns.

In 2014, the Internal Revenue Service (IRS) issued guidance to taxpayers (downloads as a PDF), making it clear that virtual currency like Bitcoin and Ethereum will be treated as capital assets, provided they are convertible into cash. In simple terms, this means that capital gains rules apply to gains or losses. (You can read more on the taxation of cryptocurrencies here.)

https://i1.wp.com/onlinemarketingscoops.com/wp-content/uploads/2020/02/Comfortable-Leather-Sandals.jpg?resize=740%2C273&ssl=1

It’s clear that the IRS is getting serious about cryptocurrency reporting. If you have questions about how and what to report, don’t stay silent: ask your tax professional for more information.

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Years ago, I found myself sitting in law school in Moot Court wearing an oversized itchy blue suit. It was a horrible experience. In a desperate attempt to avoid anything like that in the future, I enrolled in a tax course. I loved it. I signed up for another. Before I knew it, in addition to my JD, I earned an LL.M Taxation. While at law school, I interned at the estates attorney division of the IRS. At IRS, I participated in the review and audit of federal estate tax returns. At one such audit, opposing counsel read my report, looked at his file and said, “Gentlemen, she’s exactly right.” I nearly fainted. It was a short jump from there to practicing, teaching, writing and breathing tax. Just like that, Taxgirl® was born.

Source: Don’t Forget About Cryptocurrency Like Bitcoin At Tax Time

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For more information, Checkout our Complete 2019 Guide To Cryptocurrency Taxes: https://www.cryptotrader.tax/blog/the… To learn how to import your cryptocurrency data into TurboTax: https://www.cryptotrader.tax/blog/how… To learn more about the “Cryptocurrency Tax Problem”: https://www.cryptotrader.tax/blog/cry… To learn how Cryptocurrency Mining is Treated for Tax Purposes: https://www.cryptotrader.tax/blog/how…

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As Bitcoin Struggles, This Minor Cryptocurrency Is Up Almost 500% Over The Past 12 Months

bitcoin, bitcoin price, chainlink, link, cryptocurrency, image

Bitcoin has had a mixed start to the new year. The price has climbed, most likely for potentially controversial reasons—but, meanwhile, at least one minor cryptocurrency is going from strength to strength.

The bitcoin price has climbed over the first few days of 2020 but has failed to make meaningful gains and breakout of its long-running malaise, leaving many cryptocurrency traders and investors disappointed.

However, chainlink, a top 20 cryptocurrency traded under the name link boasting an $800 million market capitalization, has risen 25% already in 2020—bringing its year-on-year rise close to a staggering 500%.

The chainlink price reached its highest in late June of 2019, hitting $4.55 and up over 1800% from the start of 2019.

The massive rally was caused by interest in chainlink from China, the world’s largest bitcoin and cryptocurrency exchange by volume, Binance, working with chainlink developers so-called decentralized finance products, and search giant Google using chainlink’s blockchain to bridge legacy databases.

“As with most blockchain projects in their infancy given the low liquidity initially, any surge in demand is likely to cause significant impact on price,” said Simon Peters, bitcoin and crypto analyst at investment platform eToro.

Related imageThe chainlink price has fallen back somewhat from its all-time high but has broken the broader cryptocurrency downward trend—with almost all so-called altcoins failing to recover after the brutal crypto winter of late 2018 and early 2019.

“With chainlink developers working with the likes of Swift to help connect banks to smart contracts, as well as major companies like Google, naturally this has caused excitement around the potential of the platform going forward,” Peters added.

“This has subsequently encouraged investors to buy the link token, speculating on the project’s future success. With link prices increasing over the last year, this was further compounded by the ‘fear of missing out’ phenomenon.”

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: https://www.forbes.com

Related image

Bitcoin Has Crashed Again—But Is This When To Buy Bitcoin?

Bitcoin and cryptocurrency investors have had their hopes of a return to bitcoin’s all-time-high in 2019 all but dashed after the latest sudden sell-off.

[Updated Nov. 25 at 7:48 a.m. ET] The bitcoin price last night fell to a six month low of $6,515 per bitcoin on the Luxembourg-based bitcoin and crypto exchange Bitstamp. The bitcoin price is down some 6% over the last 24-hour trading period, wiping billions of dollars from the value of the world’s biggest cryptocurrency.

The bitcoin and crypto industry has been rocked by a severe bitcoin and crypto trading warning out of China, which some have blamed for the latest sell-off.

Now, Wall Street veteran Peter Brandt, who made a name for himself by predicting bitcoin’s devastating 2018 bear market, has called bitcoin’s low for July 2020–two months after bitcoin’s closely-watched halving event.

“My target of $5,500 is not far below today’s low,” Brandt wrote on Twitter ahead of the weekend’s sell-off.

“But I think the surprise might be in the duration and nature of market. I am thinking about a low in July 2020. That will wear out bulls quicker than a price correction.”

Brandt, who earlier this year said bitcoin will eventually hit $100,000 and described the bitcoin market as “like no other,” warned bitcoin bulls “must first be fully purged” before the price will rebound.

Brandt’s comments echo some of bitcoin’s biggest bulls, who have recently come out in force to reassure investors that bitcoin is far from dead.

As well as the May bitcoin halving, which will see the number of bitcoin rewarded to miners cut by half from 12.5 bitcoin to 6.25 bitcoin, bitcoin investors are hopeful next year will bring an increase in the number of bitcoin retail investors and people using bitcoin and cryptocurrencies for payments.

Bakkt, a New York Stock Exchange-owner backed bitcoin and cryptocurrency venture, announced last month it plans to launch a consumer app for cryptocurrency purchases in 2020.

U.S. coffee chain Starbucks will be its first launch partner, with the company one of the original backers of the crypto project, along with software giant Microsoft and Boston Consulting Group.

Meanwhile, Bakkt’s bitcoin futures daily volume hit a new all-time high, according to data from Intercontinental Exchange, with some $20.3 million across 2,700 futures contracts on Friday.

Many in the traditional financial industry remain unconvinced by bitcoin and crypto, however.

This month, former European Central Bank president Jean-Claude Trichet slammed bitcoin and Facebook’s crypto project, warning bitcoin is “not real” and not the future of money.

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: Bitcoin Has Crashed Again—But Is This When To Buy Bitcoin?

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Check out the Cryptocurrency Technical Analysis Academy here: https://bit.ly/2EMS6nY Join The Cryptocurrency Technical Analysis Academy for $40 off using the coupon code “August 2019”. In this video we analyze a head and shoulders pattern that is forming in this downtrend. Will this mean that the down trend is over and we will have a new rally? Or will Bitcoin continue moving to the downside and go even lower? – – – If you enjoyed the video, please leave a like, and subscribe! – – – Follow me on Instagram & Twitter: @cryptojebb Join the Discord! https://discord.gg/59jGjJy #Bitcoin #BitcoinToday #BitcoinNews I am not a financial adviser, this is not financial advice. I strongly encourage all to do their own research before doing anything with their money. All investments/trades/buys/sells etc. should be made at your own risk with your own capital. Spare Change? BTC 127eLjKTBKU9HTFhYowCDC4D3JBxonVk15 ETH 0x5115ACa82edf204760fE3B351c08a48d6004D89B LTC LSKXx3fQRK5LMowGznVvo6A9NtmtaQaoqP Please do not feel obligated to donate, though donations are appreciated!

A Major Bitcoin Exchange Has A ‘Massive’ Problem

Bitcoin exchanges and platforms never seem far from scandal, with crypto investors always nervously awaiting the next bitcoin hack or data breach. The bitcoin price has been known to swing wildly following reports of major bitcoin thefts, though sometimes fails to react at all.

Now, Seychelles-based bitcoin futures exchange BitMEX has sparked panic among bitcoin traders and investors after accidentally exposing thousands of its users’ emails–with the exchange’s Twitter account then compromised shortly after.

BitMEX this week sent out thousands of its users’ email addresses along with a weekly newsletter after inadvertently CC’ing recipients instead of BCC’ing them.

Today In: Money

“We are aware that some of our users have received a general user update email earlier today, which contained the email addresses of other users,” BitMEX said in a statement posted to its blog, adding an apology for the leak.

“Our team have acted immediately to contain the issue and we are taking steps to understand the extent of the impact. Rest assured that we are doing everything we can to identify the root cause of the fault and we will be in touch with any users affected by the issue.”

The exchange has blamed a bug for the leak claiming the error has been “identified and fixed.”

BitMEX, known for offering 100-times leverage trading, is currently being investigated by the U.S. Commodity Futures Trading Commission (CFTC) for allowing U.S. traders to use its platform without a licence.

“This kind of thing is a massive privacy breach with potentially serious consequences,” Jake Chervinsky, general counsel at Compound Finance, said via Twitter, adding: “[It’s] the last thing a derivatives exchange needs to deal with during a CFTC investigation.”

BitMEX has requested its users add BitMEX’s support email to their contact lists to decrease phishing emails along with adding 2-factor authentication.

Shortly after BitMEX warned users about the email leak, the exchange’s Twitter account @BitMEXdotcom posted two tweets that were promptly deleted.

The first read “Hacked” and the second advised followers to: “Take Your [bitcoin] and run. Last day for withdrawals.”

The bitcoin price, which is still choppy after a roller-coaster October, barely reacted to news of the leak, remaining steady at a little over $9,000 per bitcoin.

Last month, the bitcoin price was suddenly heavily sold off before rebounding sharply just a couple of days later.

Meanwhile, Malta-based bitcoin exchange Binance, the world’s largest bitcoin and cryptocurrency exchange by volume, warned its users to change their Binance-registered email accounts following BitMEX’s blunder.

BitMEX, known for offering 100-times leverage trading, has been criticised previously for potentially exposing traders to too much risk, with economist and bitcoin skeptic Nouriel Roubini attacking the exchange and claiming it “may be openly involved in systematic illegality.”

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I am a journalist with significant experience covering technology, finance, economics, and business around the world. As the founding editor of Verdict.co.uk I reported on how technology is changing business, political trends, and the latest culture and lifestyle. I have covered the rise of bitcoin and cryptocurrency since 2012 and have charted its emergence as a niche technology into the greatest threat to the established financial system the world has ever seen and the most important new technology since the internet itself. I have worked and written for CityAM, the Financial Times, and the New Statesman, amongst others. Follow me on Twitter @billybambrough or email me on billyATbillybambrough.com. Disclosure: I occasionally hold some small amount of bitcoin and other cryptocurrencies.

Source: A Major Bitcoin Exchange Has A ‘Massive’ Problem

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Happy Halloween! Bitcoin just hit a major milestone. Right now this is news. At some point it will turn into history. Like. Comment. Subscribe. Follow us on Twitter: https://twitter.com/AltcoinDailyio Canadian Markets Regulator Gives 3iQ Green Light to Offer Bitcoin Fund https://cointelegraph.com/news/canadi… Bitfinex adds native SegWit support for bitcoin withdrawals https://www.theblockcrypto.com/linked… The milestones just keep coming this week! https://twitter.com/APompliano/status… For our next speaker announcement, we wanted a Bitcoiner who has taken a counterculture mainstream… Super stoked to announce Tony Hawk as that featured speaker! https://twitter.com/tonyhawk/status/1… Chinese Communist Party Launches Very Own “Xitcoin,” Thanks Zuckerberg for the Idea https://coinjazeera.news/chinese-comm… Local government in China offers $150 million to fund blockchain projects https://decrypt.co/10882/local-govern… Ripple CEO Confirms Rumor on MoneyGram’s Use of XRP, Says Bitcoin and Crypto Activity Remains Largely Speculative https://dailyhodl.com/2019/10/30/ripp… Excited to integrate our Ledger Hardware Wallets with @Samsung https://twitter.com/Ledger/status/118… *********************************************************************** 🏺Support The Channel!!🏺 Protect and store your crypto with a Ledger Nano: https://www.ledger.com?r=4b0f6c5711dc Sign up for Coinbase & get $10 in free Bitcoin: https://www.coinbase.com/join/59ebcf3… Earn Bitcoin For everyday online purchases: https://lolli.com/ref/3fFthESfAq 🏺Buy Me A Beer 🏺 ►BTC: 3DYCrB2RCrREM6y3Ahxxuv9JjSVd6yrbz4 ►BTC: 3DYCrB2RCrREM6y3Ahxxuv9JjSVd6yrbz4 *********************************************************************** #bitcoin #like #cryptocurrency #news #btc #ethereum #eth #cryptocurrency #litecoin #altcoin #altcoins #eos #forex #money #best #trading #bitcoinmining #invest #trader #cryptocurrencies #top #investing #entrepreneur #business #success #investment #finance #bitcoins #motivation #coinbase #stocks #wallstreet #investor #ico #wealth #bullish #bearish #cryptolive #altcoindaily #cardano #xrp #ripple ***NOT FINANCIAL, LEGAL, OR TAX ADVICE! JUST OPINION! I AM NOT AN EXPERT! I DO NOT GUARANTEE A PARTICULAR OUTCOME I HAVE NO INSIDE KNOWLEDGE! YOU NEED TO DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS! THIS IS JUST EDUCATION & ENTERTAINMENT! USE ALTCOIN DAILY AS A STARTING OFF POINT! This information is what was found publicly on the internet. This information could’ve been doctored or misrepresented by the internet. All information is meant for public awareness and is public domain. This information is not intended to slander harm or defame any of the actors involved but to show what was said through their social media accounts. Please take this information and do your own research. bitcoin, cryptocurrency, crypto, altcoin, altcoin daily, blockchain, decentralized, news, best investment, top altcoins, ripple, ethereum, tron, stellar, binance, cardano, xrp, litecoin, 2019, 2020, crash, bull run, bottom, crash, tether, bitfinex, rally, tone vays, ivan on tech, chico, video, youtube, macro, price, prediction, podcast, interview, halloween, china, depth, buy, trade, bitfinex, canada, ontario, approved, 31Q, milesone, tony hawk, brad garlinghouse,

Bitcoin Has Crashed–What Now?

Bitcoin (BTC) has crashed. No one really knows why but in my model we should be in for “good” news on the China trade war or some such China-related information that is strong for the Chinese currency. This is only a theory but if it is correct, bitcoin will either rally vertically if no news breaks or the news will appear very soon. This is being written at 12 p.m. GMT September 25 and the news ought to be out there by no later than the end of the week.

If I’m wrong and there is no such news and the price stays down or falls more still with no positive trade war news then my bitcoin theory, which has served so well, will be severely challenged. In any event, bitcoin has crashed. The dreaded flag has broken to the downside and the bottom is anyone’s guess. The decision what to do next comes back to the schism between believing BTC will be worth $100,000-plus a coin or $0 a coin. You have to pick your side.

Way back before this year’s rally, I stated there is another way of looking at this price action. In commodities a big bubble is followed by a series of smaller and smaller echoes of the initial price shock which erupt over time as the years pass.

Each new price eruption is smaller than the last until the original bubble is all forgotten about. If this is your model, this BTC bubble echo is now dead and BTC will fall back to the $2,000-$3,000 range or even lower. Then after a year or two there will be another small vertical and on this pattern will go, until bitcoin is all  but forgotten.

Today In: Money

The alternate model is the tech boom, where the original bubble was replaced by another bigger rally, one we have still not seen the end of. Is bitcoin a commodity or a value added instrument? Bitcoin isn’t like gold or copper, where a price rise creates a glut.

Or is it? For me this is a very tempting model because I experienced it as a youngster and saw it play out all the while everyone continued to wish for the return of the moment when copper or gold went to the moon. However, bitcoin is not going to flood the market as miners pour resources into a race to over produce.
Bitcoin protects itself from exactly the economic reason why high prices are the solution to high prices.The choice is clear for players in this game of speculation, steer clear or buy the dip. I’ll be buying the dip but not in a hurry. This is the chart of what has happened:

Bitcoin has crashed

Credit: ADVFN

The flag got broken to the downside and it’s clear as day that a lot of people took this as a cue to get out, causing a panic. I’ve put some levels equivalent to some zones where the price might settle. I will be buying a little in the coming days and more if we hit $6,000 and a lot if we see $4,000.

Meanwhile, there was been a strange crash in hash rate before this price fall, so everyone is free to link that up with this fall. There may have been a BTC miner who needed to sell a big chunk of BTC and in this fragile market with everyone staring at the same delicate chart pattern, it doesn’t take much to create an avalanche. I must admit to staring at this chart before it crashed thinking I should sell.
This would have been a good move but experience has taught me that you can win on the exit but lose on the reentry. It’s great missing a fall but you can also miss the rally which can end up even more painful. This is the basic lesson of the randomness of markets. Back the direction you believe is the long-term outcome and buy the dips or don’t play at all. Bitcoin is like backing Apple when it was on the edge of going bust: do you believe in the future or not?

If you do, you hold forever and buy the dips. The only thing you mustn’t do with the position is let that put your finances at risk or hurt your sanity. As a believer I will buy this dip, in the same way as I bought the last, little and often. For those who don’t believe in the long term you should stay well clear.Be among the first to get important crypto and blockchain news and information with Forbes Crypto Confidential. It’s free, sign up now.

—-Clem Chambers is the CEO of private investors website
  ADVFN.com

and author of
Be RichThe Game in Wall Street

and
Trading Cryptocurrencies: A Beginner’s Guide

Chambers won Journalist of the Year in the Business Market Commentary category in the State Street U.K. Institutional Press Awards in 2018.

I am the CEO of stocks and investment website ADVFN . As well as running Europe and South America’s leading financial market website I am a prolific financial writer. I wrote a stock column for WIRED – which described me as a ‘Market Maven’ – and am a regular columnist for numerous financial publications around the world. I have written for titles including: Working Money, Active Trader, SFO and Technical Analysis of Stocks & Commodities in the US and have written for pretty much every UK national newspaper. In the last few years I have become a financial thriller writer and have just had my first non-fiction title published: 101 ways to pick stock market winners. Find me here on US Amazon. You’ll also see me regularly on CNBC, CNN, SKY, Business News Network and the BBC giving my take on the markets.

Source: Bitcoin Has Crashed–What Now?

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Check out the Cryptocurrency Technical Analysis Academy here: https://bit.ly/2EMS6nY In this video we discuss the recent Bitcoin crash, and the affects that Bitcoin crash may have on the Bitcoin market over the coming days. Bitcoin crashed nearly $2,000 yesterday while we were livestreaming, and found support around the Bitcoin support level of $11,700 as expected. Whether Bitcoin will continue it’s march ever higher from here, or if Bitcoin has now started a longer Bitcoin correction is yet to be seen, but we do know that Bitcoin has finally had opportunity to consolidate the gains Bitcoin has made over the past few weeks. – – – If you enjoyed the video, please leave a like, and subscribe! – – – Follow me on Instagram & Twitter: @cryptojebb Join the Discord! https://discord.gg/59jGjJy #Bitcoin #BitcoinToday #BitcoinNews I am not a financial adviser, this is not financial advice. I strongly encourage all to do their own research before doing anything with their money. All investments/trades/buys/sells etc. should be made at your own risk with your own capital. Spare Change? BTC 127eLjKTBKU9HTFhYowCDC4D3JBxonVk15 ETH 0x5115ACa82edf204760fE3B351c08a48d6004D89B LTC LSKXx3fQRK5LMowGznVvo6A9NtmtaQaoqP Please do not feel obligated to donate, though donations are appreciated!

Bitcoin Price Crashes $800 in Minutes as Bears Eye $9K Support Next

Bitcoin Price Crashes $800 in Minutes as Bears Eye $9K Support Next

Bitcoin traders eat their wallets

Traders were scratching their heads on social media Saturday in the wake of the sudden losses, with BTC/USD crashing from $10,180 to $9,410.

At press time, the pair had recovered marginally to circle $9,500, while a lack of obvious factors left commentators struggling to understand the market.

As Cointelegraph reported, a return to $10,000 earlier came as a surprise after a similar uptick occurred in a matter of minutes.

Previously, regular commentator Josh Rager had eyed a break below $9,600 as a gateway to lower levels, with the potential for $9,000 to also fall.

Some had anticipated volatility continuing in the short term. On Twitter, the trader known as CryptoCohen sounded the alarm hours before the $800 losses.

“Could be a larger correction in play – could take a lot longer too – longer than many would expect/hope. But good things come to those who wait,” he summarized.

Bitcoin’s move meanwhile had a more predictable effect on altcoin markets, with tokens in the top twenty cryptocurrencies by market cap shedding up to 4.5%.

Monthly, Bitcoin price has lost 20%, Cointelegraph noting that end-of-year and longer-term price forecasts remain bullish.

Source: https://cointelegraph.com/news/bitcoin-price-crashes-800-in-minutes-as-bears-eye-9k-support-next

Bitcoin Price Rages to New 2019 High Beyond $5,900 with Fuming Bulls Ahead

By CCN.com: Within three hours, the bitcoin price surged from $5,682 to $5,910 on Coinbase, a leading regulated crypto exchange that operates in the U.S. market, reaching a new 2019 high.

In the past week, the bitcoin price has soared by more than 11 percent, allowing the rest of the crypto market to add $20 billion to its market capitalization.

The valuation of the crypto market is up more thn $20 billion in the past week (source: coinmarketcap.com)

In consideration of the recent performance of bitcoin and the projections of industry experts, prominent crypto researcher Willy Woo has said he is 95 percent certain the low $3,000 region was the bottom for bitcoin.

WHAT WOULD IT TAKE TO CONFIRM BITCOIN BULL MARKET?

In November 2018, Woo predicted bitcoin to reach a bottom in the second quarter of 2019 based on an indicator called NVTS, which evaluates fundamental data such as transaction volume among other types of data pertaining to the blockchain to analyze the long-term trend of bitcoin.

At the time, Woo said that all blockchain indicators point toward a bearish trend. Weeks later, the bitcoin price plunged from more than $6,000 ultimately to $3,150, as projected by the researcher.

“This last reading of our blockchain and macro market indicators is still in play. What has changed is that NVTS has now broken its support, typically a sell signal. All our blockchain indicators remain bearish. NVT, NVTS, MVRV, BNM, NVM. They are experimental but have served to make very correct calls to date, even when traditional on-exchange indicators were reading to the contrary,” Woo said last year.

The accurate analysis of the macro trend of bitcoin by Woo can be primarily attributed to his consideration of fundamental factors as well as technical factors to better evaluate market conditions.

On May 7, Woo said that based on the Bitcoin Network Momentum and the 200-day moving average (MA)–a technical indicator typically used to project the long-term trend of an asset–bitcoin likely hit its bottom at $3,150 and is in the process of forming a bull market.Woo explained:

To summarise my view of the market in one spot instead of various webcasts and tweets. I’m 95% certain the market has bottomed, that’s to say we are unlikely to break below past lows.

The bull market (upward and onwards) has not formally confirmed just yet. We need to successfully retest the 200 day MA & Realised Cap (both ~$4,400 right now), or without retest we need to stay above them for a sizeable time, say another month.

Willy Woo@woonomic

The bull market (upward and onwards) has not formally confirmed just yet. We need to successfully retest the 200 day MA & Realised Cap (both ~$4400 right now), or without retest we need to stay above them for a sizeable time, say another month.

View image on Twitter

Willy Woo@woonomic

We also need price to be validated with on-chain volume mooning from here. We’ll likely get that confirmation soon in the next 4-8 wks. (I personally think the April 1st break above $4300 will be remembered years ahead as the start of the 2019 bull market). pic.twitter.com/NzzGkvcT8t

View image on Twitter

In the upcoming weeks, many analysts generally expect bitcoin to undergo a consolidation period, demonstrating stability at the current price level.

While some traders anticipate the dominant cryptocurrency to retest some support levels below $5,000, as long as BTC remains above $4,400, Woo noted that the momentum of the asset can be sustained.

FIDELITY IS COMING

The noticeable increase in the interest in bitcoin, as shown in the surge in the real spot volume of bitcoin which hovers at around $550 million–up nearly two-fold from $270 million in March–comes after Bloomberg reported Fidelity will launch a crypto trading service in weeks.

“We currently have a select set of clients we’re supporting on our platform. We will continue to roll out our services over the coming weeks and months based on our clients’ needs, jurisdictions, and other factors. Currently, our service offering is focused on Bitcoin,” Fidelity spokesperson Arlene Roberts told Bloomberg.

Apart from various technical indicators pointing toward upward momentum for bitcoin, the strengthening of the infrastructure supporting crypto assets may be rekindling the confidence of investors in the asset class, as it would enable investors who were previously unable to commit to the crypto market to reconsider their stance on the market.

Joseph Young

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Source: Bitcoin Price Rages to New 2019 High Beyond $5,900 with Fuming Bulls Ahead

NYSE-Linked Bitcoin Exchange Bakkt Just Unveiled a Major Acquisition

Bakkt – the cryptocurrency startup launched by New York Stock Exchange (NYSE) owner Intercontinental Exchange – just yanked the lid off the full range of its blockchain ambitions.

The firm announced today that it has acquired Digital Asset Custody Company (DACC) as part of its efforts to gain regulatory approval for its crypto products.

Reportedly, Bakkt is less concerned with merely building a Bitcoin exchange than they are with offering institutional custody and payment platform services, all of which still requires regulatory approval.

Bakkt Acquires Crypto Custodian DACC

bakkt bitcoin futures

Bitcoin startup Bakkt acquired a crypto custodian to help bring its regulated platform to market. | Source: Shutterstock

The company recently announced its application for a BitLicense, and it is also pushing to become a trust company in New York. The company’s efforts have been repeatedly stalled by regulatory delays, despite positive news around its partnerships with Starbucks, Microsoft, and others.

Coinbase previously acquired a trust charter with the New York Department of Financial Services. Becoming a trust can be a faster process than becoming a BitLicense recipient, which can take several years. Bakkt says in a new blog post that it’s applied for a charter, and recently we reported that they’re also seeking a BitLicense.

Bakkt wants to offer Bitcoin futures contracts that pay out in cryptocurrency, which would set them apart from other Bitcoin futures offerings. Bakkt has several other ambitious projects in mind, but it must get through several layers of red tape before it finally launches.

Adam White wrote in Bakkt’s blog today:

“To provide regulated custody, we have filed with the New York Department of Financial Services for approval to become a trust company and in this capacity serve as a Qualified Custodian for digital assets. […] It is with that same commitment to setting a new standard for securely storing digital assets that we’re excited to announce that we have acquired Digital Asset Custody Company (DACC). DACC shares our security-first mindset and brings extensive experience offering secure, scalable custody solutions to institutional clients. The team’s experience integrating multiple blockchains and operating cutting-edge consensus mechanisms is a valuable addition to our team and future product line.”

Bakkt CEO Kelly Loeffler told Fortune:

“From the ground up what ICE has been building for two years is the safest version of a custody solution for digital assets.”

Custody: The Key to Mass Bitcoin Adoption?

bitcoin wallet crypto

A lack of regulated custodians has kept many crypto-curious institutions out of the burgeoning asset class. | Source: Shutterstock

Bakkt and Coinbase have both claimed that offering secure, modern custodial solutions for cryptocurrency will encourage institutional investors to expand their portfolios to include the speculative asset class. Thus far, Coinbase and Circle’s offerings have yet to make a significant dent in the overall market.

Fidelity, a traditional assets management company, also nears completion of its custodial solution. A range of options doesn’t necessarily equate to investor interest, but their availability may play a vital role during any future bull run. Institutional investors will, at a minimum, have several popular options to choose from if they consider getting into the market, opportunities that didn’t exist in previous times.

Bakkt’s current push is three-pronged:

  • They’ve acquired a company already engaged in playing custodian to digital assets.
  • They’ve applied for a BitLicense.
  • They’re working to become a registered trust.

There are other avenues they might still pursue, such as operating without New York as an available market at first. What is clear is that the company is anxious to get into the game, and the recent bull market activity is probably not far from their mind.

Source: NYSE-Linked Bitcoin Exchange Bakkt Just Unveiled a Major Acquisition

Bitcoin Trading Volume in Venezuela Explodes to All-time High

In the last week, the amount of Bitcoin traded by Venezuelans via the LocalBitcoins peer-to-peer platform exploded by 30%, to reach an all-time high. The trading by residents of the financially troubled country, whose native Bolivar has been devalued by long-term hyper-inflation, amounted to the equivalent of $8.9m over the seven days up to February 8th. The news comes in the wake of the weekend announcement of new restrictions on the trading of cryptocurrencies for residents of Venezuela by its government, with the South American country’s authorities………….

Source: CryptoGlobe

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