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Sunday Bitcoin Flash Crash Sees $10 Billion in Positions Liquidated

Sunday saw bitcoin flash crash, causing large-scale liquidations across the board. With the total market capitalization dropping by almost $4 billion

The post Sunday Bitcoin Flash Crash Sees $10 Billion in Positions Liquidated appeared first on BeInCrypto.

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Sunday saw bitcoin flash crash, causing large-scale liquidations across the board. With the total market capitalization dropping by almost $4 billion

Bitcoin dumped nearly $10,000 in price on Sunday morning as it hit a low of $50,900 on Binance exchange. Reaching lows last seen in early March. 

While bitcoin saw some recovery following the dump, the cryptocurrency is still down over 9% on the day. 

Source: Tradingview 

Flash crash liquidates $10 billion

According to Bybt, the last twenty four hours saw a new record in liquidations. With over one million positions being wiped off the books. Totalling a mammoth $10 billion in positions that were liquidated. 

The single biggest position saw a BTC trade on Binance lose $68.73 million. While the market managed to see some recovery, the majority of longs had already succumbed to the dump. 

Source: Bybt

Binance was the top exchange in terms of liquidations, accounting for over 49% of losing positions, or $4.94 billion. Huobi was second with 17% of the positions, or $1.72 billion in liquidations. 

Sunday’s flash crash became the single biggest daily liquidation event following March 15. Which saw $2.4 billion in liquidations occur when BTC dumped from $60,000 to $55,000. 

Source: Bybt

Altcoins also suffer 

Bitcoin may have accounted for the majority of liquidations on Sunday, however it seems altcoins were not spared either. Ethereum accounted for $1.16 billion in losses, while XRP accounted for $496 million. DOGE, ADA, and FIL all saw liquidations ranging from $205 million to $183 million respectively. 

The top 10 all saw huge losses on Sunday, with double digit drops seen on all coins, even after slight recoveries. XRP, BCH, LTC, and DOT all saw declines above 20% on Sunday. 

Source: CoinGecko

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Ryan is a Fintech specialist with a passion for cryptocurrencies and blockchain adoption. He discovered Bitcoin in 2016 when investing in a Ponzi scheme, and it was the best decision he ever made.

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Source: https://beincrypto.com/sunday-bitcoin-flash-crash-sees-10-billion-in-positions-liquidated/

Blockchain

European Union Country Plans 50% Crypto Tax Cut to Attract Billions

The lawmakers in Hungary are planning to cut down crypto tax by 50% on the capital gains with an aim to attract billions to its budget.

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The lawmakers in Hungary are planning to cut down taxes by 50% on the capital gains on crypto with an aim to attract billions to its budget most probably by 2022. As announced by Mihály Varga, the Economy Minister of Hungary, the tax on crypto earnings is going to be slashed to 15% in 2022, which is almost half of the present rate, 30.5%.

Crypto Investors in Hungary to be Offered Major Tax Break Soon

The lawmakers of the country are looking forward to making Hungary become more competitive in the period of the COVID-19 pandemic. The recent move of a crypto tax cut by lawmakers of Hungary is expected to attract billions of Hungarian forints to the budget of the country.

Gabor Gurbacs of VanEck has recently released a comment stating that Hungary is buckling up to be the Wyoming of Europe, comparing it to the most crypto-friendly state of the United States.

Mihály Varga mentioned the stimulus program of the government through the year 2022, in a video that appeared on Facebook on Tuesday.

This move was addressed as a part of the COVID-19 relief efforts as the lawmakers of Hungary are considering a crypto tax cut to 15% of the capital gains, which is down from the current rate of 30.5%.

European Union Country in Preliminary Discussions Surrounding a CBDC

In the month of August 2020, a representative from the Hungarian National Bank joined a preliminary discussion regarding a Central Bank Digital Currency (CBDC). The discussion was with colleagues from the Swiss National Bank, the Bank of England, and others in the discussion of the potential rollout of the Central Bank Digital Currencies in the near future.

In addition to this, it should be noted that Hungary is not the only European country that has introduced tax-based incentives for the owners of cryptocurrencies in their country. Portugal, for instance, does not require its customers to pay any taxes at all provided that they are not engaged in any kind of professional trading.

READ  Craig Wright Refuse Moving 50 BTC, Now In Catch-22 Situation

#CBDC #Crypto Tax Cut #Hungary #Mihály Varga

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.cryptoknowmics.com/news/european-union-country-plans-50-crypto-tax-cut-to-attract-billions

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Bitcoin’s Halving May Not Pump Price Like Last Time – Here’s Why It Doesn’t Matter

With sideways trading, a bearish sentiment, and a slowing two months, Bitcoin has seen a slump from $14,000 USD highs to under $7,000 USD in recent weeks. With the Bitcoin Halviening less than 6-months away, will the market change pace and fuel the bull run that we’ve all been hoping for? While camps are divided, … Continued

The post Bitcoin’s Halving May Not Pump Price Like Last Time – Here’s Why It Doesn’t Matter appeared first on CryptoCanucks.

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With sideways trading, a bearish sentiment, and a slowing two months, Bitcoin has seen a slump from $14,000 USD highs to under $7,000 USD in recent weeks. With the Bitcoin Halviening less than 6-months away, will the market change pace and fuel the bull run that we’ve all been hoping for?

While camps are divided, here’s why we believe this Bitcoin halving will be beneficial for the market and help propel the industry to new heights.

bitcoin clock

Understanding the Potential Downside:

Bitcoin halvenings occur every 210,000 blocks. This is, on average, about every four years and was likely designed as a way to maintain a stable circulating supply and avoid hyperinflation.

When this happens, a miner’s reward per block is cut in half. As the reward level for a block decreases and difficulty for the block increases (as there are more miners competing for a smaller block reward), opportunistic miners are effectively priced out of the competition. The idea is, theoretically at least, that low-end miners cannot afford to continue mining.

As rewards for the block decrease, miners need an ever more efficient way of competing in the marketplace. Those that cannot compete, sell-off Bitcoin in an effort to cut losses and take their gains.

Historically this has only happened after Bitcoin halvenings after reward blocks are cut in half. The worry is that even with low prices now, after the halvening there will be additional selloff because of reduced block rewards, and there may not be a significant upward move for Bitcoin for months to come.

donedonedone

(source: Digital Asset Research – statistical model, not price predictions)

 The above chart as an example shows what happens with the price (light blue line) after halvenings (dotted red lines) occur. What we’re seeing here, is that there was no price increase after the last halvening. Instead, the price started increasing in the middle of the cycle, suggesting that the increase may have already been priced in. Or said another way, that the price increase from $3,000 levels earlier this year, up to $12,000 levels already represent potential gains that might have otherwise occurred after the halvening.

But this is only part of the story.

Reviewing the upside:

Weeding out inefficient miners effectively helps boost the long-term health of the overall market. Both halvenings and low prices help drive this. With continued low prices, this might actually mean that we’ve already priced in ‘miner reduction’ simply because of the current sluggish Bitcoin prices. Only the most efficient Bitcoin miners can sustain a drop in price from $14k to current $7k levels. Many miners have already been forced to shut down their rigs.

Which could mean that the halvening may not force as much sell-off as initially thought.

If it does force additional sell-off, there could be a temporary downslide before a strong bullish movement forward. If it doesn’t force additional sell-off, the halvening will only support a strong bullish trend as supply is limited, rewards are halved, and only the strongest miners remain.

Industry Strength

If we take a step back and look at long-term projections, both cases are more than positive for the industry as a whole. While short-term gains may suffer in the worst of cases, the Bitcoin halvening should help drive a long-term bullish trend.

A simple supply and demand scenario is the easiest explanation, although there are many more nuanced theories.

As halvening difficulty increases, supply is reduced. As supply is reduced the cost of each Bitcoin is likely to rise due to scarcity. Additional factors, such as global economics, increased awareness about cryptocurrency, and increased demand for Bitcoin itself should add fuel to a bullish rally.

It has yet to be determined, and the narratives surrounding the halvening are mixed at best. Yet when we look at the long term possibilities on the state of the industry, two things are very clear.

One – cryptocurrency is here to stay. And two – in the long-run Bitcoin will see a bullish movement forward.

Are you ready to take advantage of the future?


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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

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Source: https://cryptocanucks.com/bitcoins-halving-may-not-pump-price-like-last-time-heres-why-it-doesnt-matter/

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What Are “Crypto/Digital Assets” and How Can They Be Taxed?

By: Amanda Rosenstock and Aaron Grinhaus Thinking about buying or selling digital, or “cryptographic” assets such as Bitcoin, Ethereum and other cryptocurrencies? Does your business already deal with digital assets? Regardless of whether you’re an investor or a business owner, you should be aware of your potential tax liability when managing your Digital Asset portfolio. … Continued

The post What Are “Crypto/Digital Assets” and How Can They Be Taxed? appeared first on CryptoCanucks.

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By: Amanda Rosenstock and Aaron Grinhaus

Thinking about buying or selling digital, or “cryptographic” assets such as Bitcoin, Ethereum and other cryptocurrencies? Does your business already deal with digital assets? Regardless of whether you’re an investor or a business owner, you should be aware of your potential tax liability when managing your Digital Asset portfolio. Read on to learn more!

What are “Digital Assets”?

A Digital Asset is a cryptographic, often Blockchain-based, unit of value that is exchanged through a decentralized ledger system, based on cryptographic verification as opposed to a traditional third-party verifier such as a bank. “Blockchains” are decentralized payment systems, which allow parties to transfer and verify value exchanges directly, without the need for an intermediary.

Digital Assets are also called “Coins” and “Tokens”. Coins operate on their own Blockchain, store value and can be thought of as an asset intended to replace government-created, or “fiat”, currencies. Tokens are typically Digital Assets that convey information or value on a Blockchain platform created for a specific purpose.

Tax Treatment of Digital Assets

 The way that a transaction involving a Digital Assets is taxed depends on the nature of the transaction. One way the proceeds of disposition of Digital Assets purchased and held for investment may be viewed is as a capital gain. For example, when cryptocurrency that has increased in value is subsequently sold for fiat, the gain will be included in the calculation of an individual’s income for tax purposes in accordance with the current capital gains inclusion rate. On the other hand, when Digital Assets such as cryptocurrencies are exchanged for goods or services, or different cryptocurrencies are exchanged, any gains or losses associated with these transactions may be taxed as business income or barter income. Furthermore, cryptocurrency that is sold for fiat currency will be recognized as business income if trading volumes are frequent and short-term profits are consistently realized. Any profit that is made is fully taxable as business income, subject to any allowable deductions for business expenses. While business income is fully taxable, presently only 50% of capital gains are subject to tax, therefore making it more desirable to handle your Digital Assets in a manner that will trigger capital gains.

Barter transactions occur when goods are exchanged for other goods instead of fiat money. If this is done in the course of business, the fair market value of the goods being exchanged is included in the income of each respective participant in the transaction. For example, if a dentist agrees to perform dental services worth $1500 on a carpenter who, in exchange, offers to build a new deck worth $3000 for the dentist, the dentist must include $3000 in her income while the carpenter must include $1500 in his. In the case of Digital Assets: if an individual trades cryptocurrencies on a daily basis as her primary source of income then every trade could trigger a taxable event, even if no fiat currency was received. This results in a tax liability on the part of the trader even though she didn’t actually realize any gains, which is problematic.

As one of Canada’s earliest law firms specializing in the tax treatment of Digital Assets, the lawyers at Grinhaus Law Firm have the knowledge and expertise required to properly structure your crypto and Digital Asset business and holdings and mitigate your tax consequences. If you are looking to buy, sell or structure Digital Asset holdings, call or email us right away to give you peace of mind regarding your tax liability.

You may also consult with the book published by our founder, Aaron Grinhaus entitled A Practical Guide to Smart Contracts and Blockchain Law (Toronto: LexisNexis Canada Inc., 2019).

PLEASE NOTE: THIS IS NOT INTENDED TO BE LEGAL ADVICE AND SHOULD NOT BE RELIED ON AS SUCH. IT IS IMPORTANT THAT YOU CONSULT WITH A LICENSED PROFESSIONAL.

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptocanucks.com/what-are-crypto-digital-assets-and-how-can-they-be-taxed/

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