CRYPTO WASH SALES
On paper, you will realize those losses and you could carry those capital losses over year after year which will decrease the amount of taxes that would have to pay on any gains that you would make. Since digital assets have not been classified as securities and crypto is currently not under the same rules. It looks like the US President is currently trying to propose a way that this little loophole would not exist for other investors. It's not only that, it looks like the US President is looking to propose a new bill that enacts a 30% tax on electricity use for all crypto mining within the United States. I idea behind this is that reducing mining activity would lessen the environmental impact it would have on our earth.
The FED chairman Jerome Powell has gone ahead and testified on Capitol Hill about policy and the future of the US economy. On Tuesday, he went ahead and had the first part of his two-day semi-annual monetary policy testimony where he talked about how a point hike is here back on the table. After getting some additional data from the labor markets and consumer spending, it looks like things are not yet over for the economy. It looks like out of this news, what people are worried about the most is that the FED is most likely going to raise the rate again by another half a point in May and then a quarter point in June, and another quarter point in July.
To total that up, it is going to be another entire point and a half from what we have now, and instead of stopping the interest rate from peaking around 5.5%, it will be more like 6%. History has also shown that to reduce inflation by at least 2%, unemployment has to go up by 3.6%. You should know that it wasn't just crypto getting wiped off but stocks have been taking a tumble too. So any type of news that we ever get on inflation interest rates or the broader economy, usually the stock market going to tumble first and then we see the crypto market following suit after.
The New York State Attorney, General Latita James announced that she has officially decided to sue Kucoin claiming that the crypto exchange is offering unregistered Securities and it lacks the formal registration required to operate and more. The different cryptocurrencies that were mentioned by name in this lawsuit are Ethereum, Luna, and USC. You should know that a lot of this is still FUD, it not the official news which will justify this huge dip. You also have to realize that Kucoin was a major player within the space. They were one of the exchanges that allowed most regular people to buy a lot of these different Altcoins.
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