It looks like the U.S. Internal Revenue Service (IRS) has resumed its controversial campaign of sending letters to cryptocurrency holders.
Just as seen in 2019, the purpose of these letters is to warn crypto investors against dodging taxes on their digital asset holdings.
The letters, apparently sent to thousands of crypto holders across the country, can be classified into three categories. One type that the IRS refers to as “6173” warns investors that non-compliance could result in an audit.
The other two less severe types seem to educate recipients about their obligations. More on that story here. Meanwhile, in other big stories from the day:
Reddit User Suffers Copy & Paste Crypto Malware Scam
Earlier on Wednesday, a Reddit user posted a detailed account of their recent experience with a devious crypto scam that cost them $350.
While the amount lost itself might not be significant to fellow crypto users, it’s the nature of the scam that serves as a reminder to the community to stay vigilant when making transactions.
Apparently, the user wanted to cash out a chunk of their bitcoin stash on Coinbase. However, after attempting to transfer the BTC from their Binance wallet, the malware intervened and secretly changed the destination address.
Unfortunately, the user ended up sending the coins to another wallet, presumably owned by the perpetrator(s).
Outlining Bitcoin’s Potential Correction Levels [Analysis]
Bitcoin decreased sharply on August 25, creating a bearish engulfing candlestick and breaking down below an ascending support line that had been in place since July 28. The breakdown occurred with slightly above-average volume.
The short-term MACD is negative and decreasing, while the longer-term trend has already lost its strength and is moving down. It has not moved into negative territory yet.
If the price continues decreasing, there are two main support levels below the current price:
- $10,900 – created by the wick-lows at the end of July and the 50-day moving average.
- $9,900 – created by the range high of the May – June period.
Bitcoin Demanded as Ransom in Austrian Bomb Threat Emails
In yet another case of cybercrime that could cause bad PR for Bitcoin, Austrian law-enforcement agencies have intercepted a large number of emails containing bomb threats against local businesses.
The perpetrators demanded approximately $20,000 in BTC in exchange for not detonating the bombs on their premises.
Furthermore, the email claimed that businesses that met the ransom demands within the allotted 80 hours would need to continue paying.
Ethereum Classic (ETC) Might Not Be a Laggard for Long
The ETC price began an upward move in September 2019, one that eventually led to a high of 137,360 satoshis on 29 January 2020. This move caused a breakout from the 110,000 satoshi area, which had previously acted as support and was expected to act as resistance afterward.
However, the higher prices could not be sustained, and ETC fell back below the range shortly afterward. The decline has continued and the price is approaching the 55,000 satoshi support area. While the RSI is falling, the MACD has been forming bullish divergence.
FTX Acquires Popular Crypto Portfolio App Blockfolio
Following steady growth since launch, crypto derivative exchange FTX is extending its efforts to reach the retail market. In a big stride forward, the company today officially announced the acquisition of Blockfolio, a portfolio tracking app.
The FTX CEO also confirmed that the transaction involved a mix of equity, FTX’s native token, and cash.
Tether Tops $13 Billion to Flip Bitcoin for Transfer Value Top-Spot
New data from the ‘State of the Network’ Coin Metrics report has revealed that Tether’s weekly average adjusted transfer value has finally flipped Bitcoin’s.
That value has reached over $3.55 billion per day as of August 20, which is roughly 20% more than that for Bitcoin, reporting $2.94 billion. The research attributed DeFi applications like Uniswap and Curve for the surge in USDT usage.
Ripple (XRP) Looks Ready to Rip Higher
Technical indicators for Ripple (XRP) are bullish at this juncture. The RSI seems ready to bounce at 50, and the long-term MACD has been increasing for a long period of time and has almost crossed into positive territory.
This suggests that even if the price falls below the current support area, it will likely break out above the descending resistance line.