Bitcoin fell 2.68% to $8,638.66, according to CoinDesk. Ethereum fell 2.5%, Litecoin 2.8% and Ripple 4.8%.Bitcoin-related stocks were mixed Tuesday. Riot Blockchain (RIOT) tumbled 3.1% to 16.99 on the stock market todayLong Blockchain (LBCC) rose 2.4%, Overstock.com(OSTK) edged up 2.4%, Marathon Patent Group (MARA) fell 4.7%, and Bitcoin Investment Trust (GBTC) sank 2.5% to 14.54.While there might be a Bitcoin buying frenzy, only 100 out of 250,000 people that have filed their taxes with Credit Karma have reported a cryptocurrency transaction on their federal tax forms.

The IRS considers cryptocurrencies as property for federal taxes, so any profits or losses from trading should be reported as capital gains or losses.

But part of Bitcoin’s allure is the anonymity of the currency. Bitcoin was founded to avoid tracking on the dark web and many users trade anonymously on online platforms so it’s unclear how many Americans have cryptocurrency assets.

While evading taxes and paying for illicit goods are selling points for Bitcoin users, they don’t endear themselves to governments.


IBD’S TAKE: Bitcoin lost more than half its value in just a few weeks, leaving many investors with big losses. Get ahead of the curve by watching IBD’s special online seminar Tuesday that will explain how to use cryptocurrency charts to buy right and lock in profits.


On Monday, European regulators warned consumers the cryptocurrency asset class is “highly risky” and that they have no protections against losses under EU law.

The warning came after the U.K. tech site The Register found that a web mining code was put on thousands of websites, including sites run by U.S. and British government agencies.

But, like U.S. regulators a week ago, European regulators didn’t signal a massive crackdown or ban on cryptocurrency trading or mining.

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