Chart of the Day
Shadow of the Past. As the market reacts to a series of “unfortunate events”, the price of BTC’s dramatic downward movement has scarred newer market entrants, who seem to be scrambling to put a stop to their loss. From the chart, we can see that the current peak in short-term owned coins in no way matches the hype in 2017.
New holder coins make up 28% of the circulating supply, 9% less than the 2017 cycle. With the explosion of market capitalization in mind, the decline in percentage suggests that there is a substantial capital inflow into the Bitcoin market, which may provide greater cushioning effect to massive pull-backs. Back to the current situation, as weak hands flee, stronger hands continue to accumulate their Bitcoin holdings.
Talk of the Town
Money for Nothing. A new partnership is established between the Internal Revenue Service (IRS) and crypto tax firm TaxBits, which will primarily take charge of high earning and high volume trader audits. The move aims to bridge the knowledge gap of the financial institutions on crypto and its most avid traders, and separate misconceptions from wrongdoings, which is integral to formulating informed tax policies to regulate the crypto markets.