Bitcoin price struggles to defend $21K
As Ethereum declines 15% in two days and Bitcoin bulls lose pace, cold feet once more rule the cryptocurrency markets. Bitcoin (BTC) dropped to $21,000 when it was revealed that prominent U.S. cryptocurrency exchange Coinbase was under investigation.
The U.S. Securities and Exchange Commission was investigating whether the exchange had let users trade unregistered securities.
The action, which was a part of a larger conflict between the U.S. crypto business and regulators over compliance, alarmed the market as it coincided with claims that a former CEO engaged in insider trading.
As a result, Bitcoin again defended $21,000 as support for the day. Commentator Mark Cullen emphasized the importance of this level holding for bulls to maintain control. For its part, Coinbase had been anything but mute in the U.S. regulatory discussion, publishing a blog post last week on the subject of why the SEC needs to change tack.
On altcoin markets, a similar sentiment could be seen. A fellow account, TraderSZ, predicted a recovery to $1,000 for Ether (ETH) even before most of Bitcoin’s losses occurred.
At the time of writing, ETH/USD, which had previously been the top performer in the July crypto market recovery, was trading at slightly over $1,400. The duo lost 15% from their peak on July 24.
Bill to make small crypto transactions tax-free
Small crypto transactions will be excused from Capital Gains Taxes under a new bill that was filed today in the U.S. Senate, freeing Americans from having to track taxes each time they exchange cryptocurrencies.
The Virtual Currency Tax Fairness Act was introduced by Senators Pat Toomey and Kyrsten Sinema (D-Ariz.) to simplify cryptocurrency transactions. The bill will establish a de minimis exemption from taxes on cryptocurrency transactions or profits from crypto trading, up to $50.
Investors in crypto must disclose profits made on the value of the cryptocurrencies they purchased in the U.S.
The Internal Revenue Service (IRS) has not expressed interest in pursuing these minimal transactions, despite requests by cryptocurrency users for legal protection like that which already applies to the exchange of and use of foreign currencies within the nation.
