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In response to a U.S. court ruling in favour of Grayscale Investments (GBTC) over the Securities and Exchange Commission in Grayscale's application for its bitcoin ETF, the price of cryptocurrencies rallied on Tuesday, with bitcoin serving as the leader.
The Treasury Department on Friday put up new cryptocurrency tax regulations, according to the Wall Street Journal. The IRS and taxpayers will get annual reports on 1099 forms from cryptocurrency exchanges starting in 2026 that detail the gross revenues from transactions. The corporations will be compelled to disclose the cost basis, or the amount that customers paid for digital assets, by the year 2027.
Mid-August saw a decline in cryptocurrency prices, much of which was caused by news that SpaceX had sold off its bitcoin holdings.
Cryptocurrency Price Action
Following the court ruling on Tuesday, Bitcoin increased to around $27,900. Prior to the announcement, it was trading close to two-month lows at roughly $26,000. On July 13, Bitcoin reached a 2023 high of $31,809, but since July 24, it has been unable to recapture its $30,000 level. The largest cryptocurrency in the world has recovered 68.6% so far in 2018.
Its lowest price since June, Ethereum rose to $1,740 on Tuesday from $1,640 in the morning. Following its Shanghai-market transition to a proof-of-stake network on April 13, Ethereum reached a peak of $2,139 on April 16 – its highest level since May 2022. To date, the No. 2 cryptocurrency has increased 45%.
Cryptocurrency Prices Heatmap:
Investments in digital assets are very erratic. Investors should keep in mind the same primary goals despite potential differences between cryptocurrency's fundamentals and technical indicators. First, keep yourself safe by understanding when to sell, trim losses, or take profits. Second, get ready to make money if the price of bitcoin starts to increase.
In spite of their initial promise, cryptocurrencies have not proven to be effective inflation hedges. Instead, they have followed the broad indexes' trajectory. To keep up with daily market movements, read The Big Picture and Market Pulse.