Just recently, experts warned that the US Internal Revenue Service (IRS) was expecting a windfall coming from US Crypto owners who needed to pay off 1/3, or their share, of the $500bn in capital gains made globally in 2017.
Bitcoin had a record year in 2017 with the cryptocurrency gaining more than 1,300% to almost $20,000 in December.
Now, US investors have to sell $25bn worth of cryptos to pay the IRS.
Crypto markets don’t seem worried about this massive sale prospects, as instead of dropping (just 1% drop on April 17, tax day), Bitcoin and other digital currencies are on the move in the right direction again.
How fast are cryptos moving up?
According to Forbes, major cryptocurrencies like Bitcoin, Ethereum, Ripple and Monero continued to surge recently, shaking off a host of negative news.
“Bitcoin is up 2.% over the last 24 hours and 17.53% over the last seven days, Ethereum is up 1.95% and 21.74% over the same periods, while Ripple and Monero registered even higher gains,” said Forbes.
7d Price Change For Major Cryptocurrencies
Source: Coinmarketcap.com 4/18/18 at 4:30 p.m.
A host of negative news ranged from regulators cranking down on cryptocurrency exchanges to large Bitcoin sales by major investors, and tax sell-offs, and extends across the entire chain, with 96 out of the top 100 cryptocurrencies advancing, added Forbes.
Number of Cryptocurrencies That Advanced/Declined In The Top 100 Ranks
Source: Coinmarketcap.com 4/18/18 at 4:30 a.m.
Why the sudden upward movement?
CNBC said Bitcoin is flashing a rare buy signal.
The worst could be over for Bitcoin, according to Dan Morehead, CEO of Pantera Capital, prominent cryptocurrency hedge-fund managers.
He told CNBC that the digital currency has been growing at 165% per year in the five years the firm has been in business.
“Something that’s growing that fast hardly ever gets below its 200-day moving average,” Morehead told CNBC’s “Fast Money” Wednesday. “When it does, it’s a very good time to buy.”
Morehead said $6,500 was the bottom for this bear market.
“The cryptocurrency neared that level in April, falling as low as $6,620, according to CoinDesk.
Bitcoin recovered to $8,212 Wednesday, and has lost more than 40% of its value this year,” said CNBC.
At publishing time, Bitcoin was at $8173.
“It’s 65% below its high, (and) you don’t get that opportunity very often,” Morehead said.
Pantera, which has roughly $800 million in assets under management, also announced the launch of its third blockchain-focused venture fund last month.
The fund will focus on peer-to-peer transactions, fintech, artificial intelligence and machine learning.
Good news from Amazon
The Coin telegraph reported that Amazon Technologies, a subsidiary of e-commerce giant Amazon, received a patent for a streaming data marketplace that would enable users to receive real-time cryptocurrency transactions data.
“In order to meet the needs of organizations in managing of large amounts of data, the company, according to the patent, developed a technology for processing streaming data on a large scale with relatively low latency. Additionally, it would allow developers to “build real-time dashboards, capture exceptions and generate alerts, drive recommendations, and make other real-time business or operational decisions,” Amazon’s April 17 patent said.
“The file also describes a use case regarding a cryptocurrency market “data stream that publishes or includes global Bitcoin transactions (or any cryptocurrency transaction).”
A week earlier, the Bank of America’s application for a patent on a Blockchain-based storage system was published.
The patent addresses the issue of data transferring and tracking, and describes a system with automated data authentication and secured access of data.