IRS has made an announcement that any cryptocurrency transfers worth $10000 or more will have to be reported to IRS. This rule will come into effect starting 2023.
So why wait till 2023? Well, IRS wants give financial institutions some time to prepare for new requirements. This has lead to further decrease in bitcoin’s price.
At crypto coin daddy, we never understood why the IRS taking crypto seriously would be construed as bearish. Taxation is – whether you like it or not – part of the game and this sounds like “adoption” to us.
But, this has definitely led to panic among the retail market which blindly reacts to such events.
One of our technical analysts had already pointed out that bitcoin had started to become weak with bitcoin’s MACD on monthly timeframe showing hidden bearish divergence, which means bitcoin bulls have started to loose control.
Monthly support is still somewhere between 20,000 and 25,000 dollars, so be careful. There will be small bounces here and there, but overall, the market structure has been broken and it would be wise to instead sit on sidelines and let the dust settle.
I am from Brisbane, Queensland and I hold post of Associate Editor at Cryptocoindaddy.