Bitcoin’s uptrend which started in the second quarter of 2019 has been somewhat halted. Overall, after significant increases of the kind, this is a healthy technical correction. Alongside those who tend to believe that Bitcoin’s value mostly reflects its potential loss, there are many analysts who hold that after the correction, another bull market will emerge this year. The renewal of CME futures which have a significant impact on its market price and the gaps between the contracts and the market price seems to get narrower as the market begins to relax. Bitcoin’s dominance is currently at around 65%.
The regulatory sector continues to heat up and after the FATF recommendations, congressional hearings, and high-profile tweets about the future of digital currencies, we can now see the IRS issuing 10,000 “Love” letters to cryptocurrency users demanding to report their activity or correct previously filed reports.
This move comes after requests from Congress to clarify various taxation issues and the letters came out even before the authority issued the clarifications and some interpret it as a statement by the authority that the reporting obligation is preceded by all and that corrective reports can be filed if necessary. We expect that, alongside the clarification issued by the IRS, we are still likely to see the regulatory octopus deployed to the entire industry. At the time of this writing, congressional hearings continue and the market is still interpreting the implications and waiting to see regulatory activity and results in the field.
Following Bitcoin’s increase, altcoins have suffered a serious loss in value against BTC and it seems that after the recent correction this trend has halted, at least for the time being. However, despite the relative stability, we did not see any Alts that managed to lift their heads and stand out, indicating a lack of confidence in the Alt’s market and perhaps even a bullish outlook for Bitcoin in the short term.
You can also see in the next graph that swelled against a gentle dollar not like it was in hype before the big 2017 increases. However, although trading volume is on the rise, it is hard to say that this is new money entering the market.
BTC Longs (BFX): 22.3 K BTC
What Really Happened to John McAfee? The popular cryptocurrency influencer and veteran entrepreneur John McAfee has recently revealed that he was held in confinement. He was in the dark for a few days while his Twitter account was handled by his campaign manager, Rob Benedicto Pacifico Juan Maria Loggia-Ramirez.
TRON’s Founder, Justin Sun, Apologizes For Overpromoting Buffett’s $4.6M Charity Lunch. TRON’s founder, Justin Sun, has formally apologized to the Chinese regulators for overpromoting his postponed lunch with the legendary investor Warren Buffett. He said that going further he will spare more time on blockchain R&D rather than on promoting his products.
Sign of Adoption? Bank of China Just Posted a Comprehensive Educational Bitcoin Infographic. In what seems like a significant move forward in terms of cryptocurrency adoption, the Bank of China posted an infographic on its website as part of an attempt to educate its users on how Bitcoin works.
The BitFinex & Tether Case: Judge Cohen Needs More Time For Investigation. New York Supreme Court Judge Joel Cohen has extended the preliminary injunction of the New York Attorney General’s office as he wasn’t prepared to make a final decision.
Facebook Warns Investors: Libra May Never Launch. Following the initial announcement of the much-anticipated cryptocurrency of Facebook, the social media giant has warned its investors that Libra might not see daylight. The reasons include regulatory scrutiny, as well as the company’s lack of experience in the field of blockchain technology.
Trump DOJ Sues Infamous Bitcoin Exchange for $100 Million. Trump’s administration has filed a lawsuit for $100 million against infamous bitcoin exchange BTC-e and Alexander Vinnik – its alleged operator. The latter remains in custody in Greece while governments attempt to extradite him.
This week we’ve analyzed Bitcoin, Ethereum, Ripple, Basic Attention Token, and DigiByte; click here for the full price analysis.
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