Daily News | MicroStrategy Bought BTC Again, Justin Sun and Other Honchos Bought Low CRV and Bullish on Its Future, Internal Revenue Service Issued A New Guide to Crypto Tax Payment

2023-08-02, 04:03

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## Crypto Daily Digest: MicroStrategy buys BTC again, and the Internal Revenue Service releases a new guide to crypto tax payment
MicroStrategy launched again. Michael Saylor, founder of MicroStrategy, stated on social media that MicroStrategy bought 467 bitcoins again with about $14.4 million in July.

According to MicroStrategy's financial report, it increased its holdings of 12,333 bitcoins in Q2. As of July 31, 2023, MicroStrategy purchased 152,800 bitcoins for approximately $4.53 billion, with an average price of $29,672 per <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>. According to the documents submitted by MicroStrategy to the U.S. Securities and Exchange Commission (SEC), MicroStrategy plans to issue and sell up to $750 million of shares for general corporate purposes such as acquiring Bitcoin and working capital.

As soon as this news came out, Bitcoin began to pull the market, and now it has returned to the previous range of shocks. There is no doubt that MicroStrategy was timely and firmly convinced that Bitcoin would become an international currency in the future, otherwise, they would not have made large-scale purchases in this way.

We now know that BlackRock and other big institutions are behind us. Since everyone is on board, we will export crazily in the future. BlackRock and other institutions have enough strength so that we can wait.

The CRV event has gone viral throughout the DeFi circle. In the past two days, Justin Sun and Jeffrey Huang have bought CRVs through OTC, as well as Jihad Wu and others. They are optimistic and think CRV is the cornerstone of DeFi, so everyone is generous to buy low CRV.

As of now, according to information on the chain, Jeffrey Huang has staked and locked in the Curve protocol the 3.75 million CRVs he acquired from the founder of Curve through OTC. The address marked "Justin Sun" transferred 2 million USDTs to the Curve founder's address 5 minutes ago. Afterward, the founder of Curve transferred 5 million CRVs to Justin Sun's address.

Curve founder Michael Egorov has sold a total of 54.5 million CRVs today and raised $21.8 million in funds. Among them, 12.5 million CRVs were sold to DWFLabs; 3.75 million CRVs were sold to Huang Licheng; 2.5 million CRVs were sold to Cream. Finance; 2.5 million CRVs were sold to addresses starting with 0xb0b; 2.5 million CRVs were sold to addresses starting with 0xb0b; 1.25 million CRVs were sold to addresses starting with 0xcb5; and 250000 CRVs were sold to addresses starting with 0x9db.

Curve founder Egorov's main loan positions have all recovered to health rates above 1.6. Among them, the loan health rate on <a href="/price/aave-aave" target="_blank" class="blog_inner_link">Aave</a> V2 is 1.67; The health rates of the two loans on Abracadabra were 1.63 and 1.89, respectively; The loan health rate on Fraxlend is 1.91.

Yesterday, the Internal Revenue Service issued a new guide that the staking rewards obtained on the POS blockchain are subject to tax.

According to a decision issued by the Internal Revenue Service (IRS) on Monday, cryptocurrency investors who receive rewards for validation activities on the Proof of Stake (POS) network should include these rewards in their earnings in the year in which they control these tokens.

According to legal analysis, "the fair market value of the validation reward received includes the total taxpayer income for the tax year in which the taxpayer obtains control and control over the validation reward." The analysis states that the value should be calculated from the moment the US taxpayer obtains control of the token.

The Internal Revenue Service pointed out in the guide that if "taxpayers receive additional units of cryptocurrency as incentives for verification," this rule also applies to investors who stake tokens through the cryptocurrency exchange.

## Today’s Main Token Trends
### BTC
![](https://gimg2.gateimg.com/image/article/1690954650BTC.png)
Bitcoin's trend has followed the expected pattern of an initial decline followed by a consolidation phase, confirming the key neckline support at $28.5K USD, as previously mentioned. This morning, Bitcoin's price successfully completed the pullback, reclaiming the crucial support level at $30K USD. If the short-term maintains stability above $29.5K USD, there is still potential for a target price of $36K USD, with the possibility of an end-of-year uptrend.

### ETH
![](https://gimg2.gateimg.com/image/article/1690954672ETH.png)
As the overall market shows signs of breaking support, <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>'s short-term volume remains relatively weak and has not yet recovered above the significant upward trend line. For aggressive short-term traders, it is advised to observe whether Ethereum can regain stability in the upward trend, and if so, consider it a signal to enter long positions. Conservative short-term strategy suggests waiting for a breakout above $2,037 USD to target the top resistance at $2,358 USD sustainably. It is important to note that the short-term outlook still favors a bearish bias.

### CRV
![](https://gimg2.gateimg.com/image/article/1690954691CRV.png)
Curve's founder, Michael Egorov, has conducted off-exchange trades valued at approximately $12 million USD in CRV, with an average OTC price of around $0.4 USD, subsequently receiving varying amounts of USDT for resolving the liquidation crisis. For short-term CRV traders, the possibility of a continuous pullback to $0.558 USD is expected. For those optimistic about CRV, the sequential building of positions is suggested at the following yellow ordinal levels: $0.541 USD, $0.527 USD, and $0.517 USD.

## Macro: JOLTs announced yesterday, the economic outlook is improving, and the expectation of interest rate cuts may usher in a bull market in crypto space
Austan Goolsbee, the "big dove" of the Federal Reserve, refutes the idea of rate cuts, stating that ending rate hikes requires more evidence of inflation easing, and any rate cuts will be in the distant future.

Raphael Bostic also believes that the September action depends on data, and significant progress has been made in inflation. There is a risk of excessive tightening, but interest rates will not be lowered until the second half of next year.

Last night, the number of job vacancies for JOLTs in the United States in June was 9.582 million, lower than the expected 9.61 million and 9.824 million, a new low since April 2021.

The market has always expected to start cutting interest rates next year, as the rate hike is nearing its end and the economy's ultra-high interest rate operation is bound to bring about an economic recession, so the Federal Reserve has to cut interest rates.

Although Federal Reserve officials have recently claimed confidence in the prospects of a soft landing, their predictions have exposed their unease.

Federal Reserve Chairman Jerome Powell also acknowledged at a recent press conference that the US labor market may need more weakness to bring inflation back to 2%. The median forecast of FOMC members formulating policies as of June is that the unemployment rate will rise to 4.5% next year, nearly one percentage point higher than currently.

If there is not much evidence to suggest that the economy can operate at an unemployment rate below 4% and maintain consistency with 2% inflation, he expects the prospect of a hard landing to stay the same.

The current issue is the time period for interest rate cuts. Once interest rate cuts begin, the economy will become active again, and the absence of interest rate cuts has failed to curb the optimistic development trend of the US economy.

So, if interest rates are lowered next year, a new wave of growth will have to start again, and the size of the crypto market is expected to increase further. We will wait and see.

<div class="blog-details-info">
<div>Author:**Byron B.**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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