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The advent of Bitcoin, Ethereum, and other cryptocurrencies has introduced unprecedented ways to distribute new assets, creating complex tax situations. Here’s how to account for forks and airdrops, and a few strategies to minimize taxes.

There is little precedent when it comes to taxes around forks and airdrops.

“In the traditional world, nobody airdrops anything. The dollar doesn’t fork every Tuesday,” said Alon Muroch, CEO of crypto accounting platform Blox, in an interview with Crypto Briefing.

Ruling from other regulatory agencies adds to the complexity. By the letter of the law, many cryptocurrencies are not considered money, or commodities, but instead securities⁠—investments that represent a contract between a buyer and an enterprise.

“You should start with the assumption that you’re starting with a securities offering,” said SEC Chairman Jay Clayton. Failing this assumption, or misinterpreting the rule of tax law, has led to “a majority of companies filing incorrectly,” LukkaTax’s co-CEO, Robert Materazzi, told Crypto Briefing, who claims that most portfolio apps that link to a tax service are doing so incorrectly.

FinCEN has issued its own guidelines around money transmitter rules for cryptocurrency, treating crypto like cash for anti-money laundering purposes. Meanwhile, the Commodities Future Trading Commission treats Bitcoin as a commodity. The U.S. Internal Revenue Service treats it as property. Ethereum falls somewhere in the middle.

Between the regulators, it’s one confusing mess of three and four-letter acronyms giving mixed messages.

What Is a Blockchain Fork? A fork is a software change that creates two separate versions of the same blockchain. Most often, forks are used to introduce upgrades, where the old version of a blockchain is replaced by the new one as soon as the fork is executed.

Occasionally, however, forks are used to settle disagreements over technical features, like the block size debate that lead to Bitcoin Cash. Other times, it’s about governing philosophy, like in Ethereum Classic. Yet other times it’s about taking advantage of a brand name, like Bitcoin Diamond. They’re an integral part of what makes a decentralized blockchain, well, a blockchain.

Forks happen all the time. Since inception, Bitcoin alone has had over 50 forks.

To make matters worse, holders often aren’t aware that a fork has even taken place and many coins go unclaimed. Nevertheless, the IRS views forks as taxable events.

Understanding Token Airdrops Airdrops are another situation where money falls out of thin air. In an airdrop, coins are “carpet bombed” to thousands, or even hundreds of thousands of cryptocurrency addresses as part of marketing campaigns, said Muroch.

One example of a massive airdrop was the one executed by Stellar, a cryptocurrency created by XRP co-founder Jed McCaleb. In September of last year, the Stellar Foundation announced it would airdrop 2 billion XLM, worth over $120 million at the time. An unprecedented sum.

Again, like forks, the owner of a cryptocurrency address that benefits from an airdrop is often unaware of the windfall. Many times they do not even consent to receiving an airdrop.

“You’re not always aware that you receive assets from a fork. You can couple that with airdrops, not just forks,” said Muroch. “All those holders had taxable events because someone in the marketing department decided to use that as a marketing tool.”

Tax Implications of Forks and Airdrops Consent aside, the IRS has voiced its position on forks and airdrops⁠. “The receipt or transfer of virtual currency for free, including from an airdrop or following a hard fork,” needs to be reported for tax purposes, says the IRS.

The power to collect taxes from these events, even crypto, come from broad powers given to the government over a century ago. “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived,” reads the 16th amendment.

The IRS has offered some clarity concerning the confusion. In October 2019, the agency issued a ruling on the issue.

Crypto holders recognize income when they “exercise dominion and control over the cryptocurrency” received through a fork or an airdrop, according to the rules. That is, when a holder gains the ability to transfer or sell the cryptocurrency.

Wendy Walker, a tax withholding and reporting expert at Sovos, a tax reporting software company, reaffirmed this position in a conversation with Crypto Briefing. Forks are treated as “ordinary income,” and the specific amount of tax liability would depend on the valuation scheme the taxpayer is using, she said.

By default, coins are valued using the FIFO, or “first in first out,” method of accounting, where the oldest units of cryptocurrency are used to determine the cost basis, said Jim Calvin, a tax partner at Deloitte.

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Though there are other valuation methods that may produce less tax liability, like LIFO or average cost, and these are viable so long as they are consistently applied. If this all seems confusing, an example might help illustrate the tax implications.

Using the Bitcoin Cash Fork as an Example Bitcoin Cash split from the Bitcoin network on Aug. 1, 2017, to settle a disagreement over the block size⁠⁠, which essentially determines the upper limit to how many transactions can be processed by the Bitcoin network in a roughly a 10 minute interval.

Those who held their private keys prior to the chain-split received a number of BCH equal to the number of BTC they held.

Bitcoin was trading at $2,800 the day of the fork. Immediately after the split, Bitcoin Cash opened on exchanges at $290. A taxpayer who had received BCH would recognize $290 in income, which would also determine the cost-basis of the BCH.

Later the next day, if the taxpayer sold their Bitcoin Cash when it was trading at $380, they would recognize capital gains of $90:

$380 - $290 = $90 Hypothetically, if the price of Bitcoin dropped as a result of the fork, it might be possible to offset some of the income from the fork, but the rules around this are unclear.

Tron’s Ethereum Airdrop as an Example Another example to demonstrate the recognition of income is when Tron airdropped 30 million TRX to Ethereum holders. Announced April 2018, Ethereum addresses with a balance of one or more ETH received between 10 and 100 TRX.

TRX was trading at $0.5 on the day of the airdrop, April 20, 2018. Assuming an address received 50 TRX, the Ethereum holder would recognize income of $25 on that day ($0.5 x 50).

To illustrate the impact of FIFO, if those coins were received over a series of days (from the 20th to the 22nd, for example), then the following accounting would take place:

April 20: 50 TRX at $0.5 each ($25) April 21: 50 TRX at $0.6 each ($30) April 22: 50 TRX at $0.7 each ($35) In all, the account holder received $90 worth of TRX, and would recognize this sum as revenue. Hypothetically, if they sold 60 TRX at $0.7, they would recognize gains from the oldest batches of coins first under FIFO.

The April 20 batch as the “first in” would get sold first, for reporting purposes. The 50 TRX with a cost basis of $0.5 each and sold for $0.7 each would register a gain of $10:

(50 x $0.7) - (50 x $0.5) = $10 Then, it would take 10 TRX from the batch from April 21, which were obtained at $0.6 each:

(10 x $0.7) - (10 * $0.6) =  $1 In total, the taxpayer would recognize capital gains of $11, in addition to the $90 of income from the three batches of airdrops.

In some circumstances, especially for those who trade often, it can be advantageous to use the LIFO method which takes the newest coins first, allowing some of the coins held for more of the year to get preferential long-term capital gains treatment.

Issues Raised by Airdrops Airdrops are an issue for holders of Ethereum and other smart contract blockchains. Even if the owner of the address did not consent to receiving the tokens they would still incur tax liability. Oftentimes, Ethereum holders receive hundreds of unsolicited tokens at no fault of their own.

Looking at Vitalik Buterin’s wallet address as an example, he has received over a hundred unsolicited airdrop coins worth thousands of dollars.

Vitalik Buterin’s main wallet address on Etherscan If the rules are to be followed by the book, each and every one of these airdrops would be recognized as revenue on the date of receipt. Further complicating the issue is that many of these coins are not traded on reputable exchanges, meaning their prices are unreliable.

In the end, this results in an accounting headache and an unwanted tax liability for holders of Ethereum, Tron, EOS, and other smart contract coins.

IRS Ramps Up Crypto Enforcement These tax agencies mean business. Regulators are well aware of cryptocurrency’s role in aiding tax evasion and money laundering. Those who think they can get away without paying taxes are at risk of an audit, along with steep penalties.

Transactions on the Bitcoin blockchain are public, for the most part. It’s only a matter of time before the IRS is able to trace these transactions back to taxpayers, Walker told Crypto Briefing.

More alarming is that more than 50% of CPAs expect that at least half of their clients will be audited for back taxes on their crypto holdings, according to a joint report by Blox and Sovos. Reputable exchanges report activity from crypto traders to the IRS. Coinbase, Kraken, Binance.US, and Gemini all disclose this information to tax agencies, making evasion difficult.

In June of last year, the IRS mass mailed targeted letters to taxpayers suspected of “misreporting” cryptocurrency transactions. British tax authority HM Revenue & Customs has issued similar warnings.

“Cryptoassets like Bitcoin have attracted a lot of interest from people who are new to investing and have probably never filed a tax return in their life. It’s really important for investors to start doing the maths now so they know how much profit they’ve made and the tax due,” said Iqbal Gandham, UK managing director of eToro.

These authorities are serious, and it’s likely they’ll continue to crackdown on those intentionally and unintentionally underpaying on their taxes.

Caveats and Strategies Around Cryptocurrency Income Recognition There are, however, some caveats. Exchanges don’t always immediately recognize forks as tradable assets, and many do not register airdrops at all. This can be used to the taxpayer’s advantage.

Coinbase, for example, did not offer support for BCH for a full four months after the fork. As a result, holders wouldn’t recognize income until they could “exercise control” over the asset. That is, until they could transfer and trade it.

So, for those trading on Coinbase, income wouldn’t be recognized until that date, when Bitcoin Cash was worth over $2,500 per coin (instead of $290 per coin).

This fact can be used as a tool to reduce tax liability. By storing coins on an exchange, a holder can avoid getting bombarded by airdrops, which would normally trigger taxable events.

To take advantage of this, an investor could store coins on an exchange and wait until their income drops⁠ to claim those coins (supposing they waited until they could offset their gains by selling some coins at a loss, or expected less income in a coming tax year⁠).

How to Report Forks and Airdrops on Your Taxes In sum, here’s how to report forks, airdrops, and capital gains on a tax return. The following exercise uses the Bitcoin Cash fork and Tron airdrop from the earlier examples. The entire process requires four different IRS forms.

These include the following: the 8949: Sales and Other Disposition of Capital Assets, the Schedule 1: Additional Income and Adjustments to Income, the 1040, Schedule D: Capital Gains and Losses, and the 1040: Individual Income Tax Return.

Assuming the taxpayer received 1.0 Bitcoin Cash from the fork and 50 Tron from the airdrop in the earlier example, first fill out the Schedule 1 as follows:

($290 x 1 BCH) + (50 TRX x $0.5) = $315 Then, for the capital gains associated with the sale of the Bitcoin Cash, itemize each sale and report it on form 8949. For those who trade regularly attaching a spreadsheet can greatly speed-up the process.

(Sale price: $380) - (Price at fork: $290) = $90 gain The sum of these cryptocurrency sales are then reported on Form 1040, Schedule D. Finally, input these figures on the 1040 form with all other sources of income:

(Capital Gains: $90) + (Fork and Airdrop Income: $315) = $405 total income Between the fork, the capital gain, and the airdrop, this taxpayer would have $405 in additional total income.

At first glance, it may seem that reporting tens and sometimes hundreds of cryptocurrency transactions would be daunting. It is, without the aid of spreadsheets or software.

But, with enough diligence, it’s possible to report these transactions yourself. Beyond that, those who plan in advance can even reduce how much they owe, allowing them to keep more of their hard-fought gains.

For more information on proper filing, refer to official guidance from the IRS and their frequently asked questions guide.

The information presented here does not represent tax advice. Please consult with a professional before making decisions about your taxes.

Disclosure: This article was edited by Mitchell Moos. For more information on how we create and review content, see our Editorial Policy.

The gaming universe is on the precipice of a significant shift. Aurory, a prominent name within the NFT-driven gaming scene, has divulged its plans to extend its realms beyond the Solana blockchain. This expansion focuses on incorporating the Ethereum scaling network, Arbitrum, into its ecosystem. The announcement not only solidifies the increasing momentum of cross-chain integration but underscores the flexibility and inclusiveness that the modern gaming industry is inching towards.

Expansion, Not Migration

While various Solana-rooted NFT and gaming projects have ventured into other blockchain territories, Aurory's trajectory seems unique. The brand consciously markets its move as an "expansion" rather than a full-blown migration. Jonathan Campeau, Aurory’s Executive Producer, clarifies the brand's stance, stating, “We’re not leaving Solana necessarily. For us, we need to branch out a little bit from a pure business point of view.”

Aurory’s SyncSpace technology is at the forefront of this strategic shift. It promises a smooth transition for assets between Solana and Arbitrum, enabling players to access their favorite games without a hitch.

Bridging the User Experience Gap

Solana's inherent incompatibility with the Ethereum Virtual Machine creates hurdles for users accustomed to the Ethereum ecosystem and specific wallets like MetaMask. Addressing this, Aurory offers a simplified sign-in experience where players can use their email addresses and opt to connect a crypto wallet later. By doing this, they are acknowledging and catering to diverse user experiences and preferences.

Campeau captures the essence of the move, “We just want to open more doors for players. Solana has a specific audience, and so does Arbitrum.”

SyncSpace: More Than Just a Bridge

SyncSpace, while functioning as a bridge between blockchains, has a more profound mission. Michael Natoli, Aurory’s Head of Marketing and Business Development, emphasizes that the main goal is to establish novel on-ramps into the game, tapping into diverse crypto communities. The objective is to enrich the player experience and promote a sense of community.

This bidirectional flow of assets ensures players have the flexibility they seek. Whether an NFT is on Solana or Arbitrum, its functional utility within the game remains consistent. “There is no 'upside' of moving them from one chain to the other. We ultimately want to expand our community and bring the Aurory experience to another growing and committed Web3 ecosystem in Arbitrum,” added Natoli.

Enhancing Gameplay with Blockchain Diversity

The cross-chain integration can also breathe new life into the gameplay. Campeau suggests that integrating more blockchains could introduce new experiences with NPCs, potentially tied to specific chains, paving the way for intriguing cross-chain explorations.

A Glimpse into Aurory's Gaming World

With two exciting games under its belt, Aurory Adventures (a PvE RPG) and Aurory Tactics (a PvP battle arena game), Aurory promises players an immersive experience. The inclusion of character NFTs known as Aurorians and Pokemon-esque animal NFTs labeled Nefties adds depth to the gameplay. Their past collaborations, like the one with TSM and the crypto exchange FTX, indicate their intent to innovate continually.

While Arbitrum is Aurory’s current focus, the brand is keeping its doors open. Campeau hinted at the possibility of exploring other ecosystems like Polygon, Avalanche, and BNB in the foreseeable future.

In conclusion, Aurory’s venture into the cross-chain domain signifies a pivotal moment for the gaming industry, setting a precedent for more inclusivity and interconnectedness in the crypto-gaming world.

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Ethereum price managed to hold the $2,200 support as the crypto market downturn intensified this week, on-chain signals highlight rising whale demand. 

On Jan. 22, the crypto market suffered significant bearish headwinds as Bitcoin (BTC) prices wobbled below $40,000 for the first time in 50 days. At press time on Jan. 25, the global crypto market capitalization has shrunk 7%, with $108.5 billion in valuation wiped out within the weekly timeframe. 

Ethereum (ETH) vs. Crypto Market Cap Performance | Source: TradingView Losing 5% in Ethereum (ETH) price has maintained a relatively more resilient performance than the industry average between Jan. 22 and Jan. 24.

Ethereum whale activity remains high despite downtrend  Ethereum price has managed to keep losses below the 5% threshold this week, while Bitcoin and the global crypto market cap shrunk by up to 7%, respectively, before making a mild rebound. On-chain data trends suggest that the rising level of whale trading activity recorded on the Ethereum network this week has been pivotal to ETH’s resilient price performance. 

Santiment’s Whale transaction count metric tracks the daily number of transactions involving a particular cryptocurrency that exceeds $100,000.

On Jan. 23, the Ethereum Whale Transaction Count surged above 1,190. A closer look at the chart below shows this was the highest recorded since the ETH price raced to a 20-month peak of $2,690 on Jan. 11. 

Ethereum (ETH) Price vs. Whale Transaction Count | Source: Santiment Corporate entities accumulate ETH at significantly high volumes despite the broader market retreat. This could be attributed to investors and fund sponsors looking to acquire Ethereum ahead of a looming ETH spot ETF verdict. 

During market downtrends, an increase in whale transactions impacts the price of a crypto asset positively in two major ways. Firstly, it provides market liquidity, enabling bearish panic sellers to execute their trades at favorable prices. It also reinforces confidence among small-scale retail traders. 

These factors have played a vital role as ETH battles to hold above the $2,200 support level amid market-wide sell-offs this week. 

Ethereum investors opt for long-term storage Furthermore, Ethereum has also recorded a steady decline in exchange reserves this week, which could be linked to the rise in whale activity. 

Corporate entities and whales are known to be value investors who tend to hold for longer periods. Unsurprisingly, the rising volumes of whale transactions on the Ethereum network in recent months have coincided with a rapid decline in supply deposited on exchanges. 

At the start of the week on Jan. 22, Ethereum supply on exchanges stood at 10.5 million ETH. But interestingly, that figure has dropped sharply to 10.4 ETH by Jan. 25. 

Effectively, this means that investors have shifted 150,000 ETH worth approximately $330 million from exchanges and trading platforms into long-term storage or staking contracts. 

Ethereum (ETH) Supply on Exchanges vs. Price | Source: Santiment Despite bearish headwinds, Ethereum Supply on Exchanges dropped by 150,000 ETH in the last four days, signaling a dominant preference for long-term holding and passive income staking among current holders. 

Notably, Ethereum exchange supply has been in a downtrend since the Proof of Stake (PoS) transition in May 2023, a move that has coincided with an extended period of price uptrend. 

ETH price prediction: Can Ethereum Price Stay Above $2,000?  As the downward trend in exchange supply persists, fewer ETH coins are readily available to be traded in spot markets. This appears to have decelerated the selling pressure on Ethereum this week relative to the broader altcoins market. Combined with the steady rise in whale transactions, Ethereum price is in a prime position to defend the $2,000 territory. 

IntoTheBlock’s in/out of the money around price data, which groups all existing ETH holders by their entry prices, also affirms this stance. 

It shows that 8.3 million addresses, the largest cluster of ETH holders, had acquired 46.5 million ETH at the maximum price of $2,078. If Ethereum price slides toward $2,100, many of these holders could make frantic covering purchases to defend their positions to avoid slipping into net-loss positions. This could effectively trigger an instant Ethereum price rebound. 

Ethereum (ETH) Price Forecast, Jan 2024 | Source: IntoTheBlock On the upside, Ethereum bulls could overturn the bearish pressure if it reclaims the $2,500 territory. But this looks unlikely within the current market dynamics. As seen above, a significant cluster of 3.7 million addresses had acquired 7.1 million ETH at an average price of $2,400. 

If they engage in mild profit-taking as prices hit their break-even point, Ethereum could slide into another correction phase.

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Trader Makes a Disastrous Swap on Ethereum, $50 Million Vanishes

A trader lost $50M after a swap faced 99% slippage on CoW Protocol. Despite warnings, the user confirmed the trade and received only about $36K. A crypto trader lost almost $50 million in a single transaction after executing a large token swap on the decentralized trading platform CoW Protocol in interaction with the assets linked to the Aave on the Ethereum Network.

What really happened Blockchain data shows that the trader tried to convert about $50.43 million worth of aEthUSDT into aEthAAVE tokens. Because the order was large, the swap was executed with more than 99% slippage. The trader received only 327 aEthAAVE tokens, which are worth around $36,000. 

Skippage was the main reason for this loss. This type of event occurs when a large trade changes the price of an asset while the transaction is being executed. In decentralized finance, trades are executed through liquidity pools. If a trader attempts to execute a very large order against a pool with limited liquidity, the price can shift dramatically.

Stani Kulechov says that the platform displayed several warnings before the trade was completed. He explained that the interface flagged the transaction as having extraordinary slippage risk due to its size. Kulechov said the platform’s trading systems functioned as intended and followed standard industry practices.

In decentralized finance, arbitrage bots constantly monitor blockchain transactions. When a large trade causes a sudden price imbalance, these bots immediately step in to profit from the difference. Aave said it plans to contact the affected user. The protocol intends to return about $600,000 in transaction fees generated from the trade. Even though the platform provided warnings, the user proceeded with the trade, resulting in one of the most dramatic single-transaction losses seen in decentralized finance.

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Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)

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Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.

According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.

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According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.

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US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.

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According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.

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During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.

According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.

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On-chain data shows the Ethereum Market Value to Realized Value (MVRV) Ratio has just seen a signal that could prove to be bearish for ETH’s price.

Ethereum MVRV Momentum Has Witnessed A Bearish Crossover As pointed out by analyst Ali Martinez in a new post on X, the Ethereum MVRV Ratio has declined under its 160-day moving average (MA) recently. The “MVRV Ratio” refers to an on-chain indicator that keeps track of the ratio between the Ethereum market cap and the realized cap.

The realized cap here is a capitalization model that calculates ETH’s total valuation by assuming that the ‘real’ value of each token in circulation is equal to the spot price at which it was last transferred on the blockchain.

Since the last transaction of any coin is likely to correspond to the last point at which it changed hands, the Realized Cap essentially measures the sum of the cost basis of the circulating supply. This model could also be looked at as a representation of the amount of capital the investors as whole have put into Ethereum. In contrast, the market cap is the value that the holders are carrying right now.

When the value of the MVRV Ratio is greater than 1, it means the market cap is greater than the realized cap. Such a trend implies the investors as a whole are sitting on unrealized gains. On the other hand, the metric being under the mark suggests the holders are carrying a lower value than they initially put in, so the average investor could be considered underwater.

Now, here is the chart shared by the analyst that shows the trend in the Ethereum MVRV Ratio, as well as its 160-day MA, over the past year:

The two metrics appear to have crossed each other in recent days | Source: @ali_charts on X As is visible in the above graph, the Ethereum MVRV Ratio has registered a decline recently as ETH’s price has followed a bearish trajectory. The indicator is still above the 1 mark after this drawdown, suggesting the overall market remains in the green.

The metric’s fall, however, has meant that it has slipped under its 160-day MA. The combination of the indicator’s daily value and its 160-day is known as the MVRV Momentum. In the chart, Martinez has highlighted what happened the last time the MVRV Momentum showed a similar pattern as recently.

It would appear that the MVRV Ratio crossing under its 160-day MA led to a 40% price correction for Ethereum last year. It now remains to be seen whether the negative momentum in the indicator would also prove to be bearish for the cryptocurrency this time as well or not.

ETH Price At the time of writing, Ethereum is floating around $3,200, up more than 2% over the last seven days.

Looks like the price of the coin has seen a decline recently | Source: ETHUSDT on TradingView Featured image from Dall-E, Glassnode.com, chart from TradingView.com

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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PANews reported on March 2nd that, according to BlockSec Phalcon monitoring, its system detected a suspicious transaction targeting the Inverse Finance contract on Ethereum several hours ago, resulting in a loss of approximately $240,000. The incident appears to involve DOLA price manipulation, forcing multiple users to liquidate their contracts.

BlockSec stated that it has contacted the project team but has not yet received a response. Since it is unclear whether other users are affected, further technical details will not be disclosed at this time, and affected users are advised to take immediate action.

Rubio: US and Iran to continue technical consultations at the end of this month

Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)

5 hours ago

Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.

According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.

5 hours ago

Bitcoin falls below $60,000

According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.

5 hours ago

US Treasury Secretary: AI boom may boost productivity and help curb inflation.

US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.

5 hours ago

US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.

According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.

5 hours ago

During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.

According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.

5 hours ago

Rubio: US and Iran to continue technical consultations at the end of this month

Multiple foreign media outlets reported on the 24th that US Secretary of State Rubio said technical teams from the United States and Iran will hold further talks in Switzerland by the end of June. (Xinhua News Agency)

5 hours ago

Over the past 24 hours, total crypto market liquidations hit $606 million, with more than 130,000 traders liquidated.

According to Coinglass data, the global cryptocurrency market recorded $606 million in liquidations over the past 24 hours, including $542 million in long-position liquidations and $68.22 million in short-position liquidations. A total of 135,785 traders worldwide were liquidated in the same period, with the largest single liquidation order occurring on Binance’s BTCUSDT trading pair, valued at $12.0111 million.

5 hours ago

Bitcoin falls below $60,000

According to HTX market data, Bitcoin has fallen below $60,000, with a 4.3% drop in the past 24 hours.

5 hours ago

US Treasury Secretary: AI boom may boost productivity and help curb inflation.

US Treasury Secretary Bessent told CNBC in an interview that he hopes the Federal Reserve will remain "open-minded" about the inflation pattern after the reversal of Iran-related energy price hikes. Bessent noted that the U.S. could enter an economic environment marked by high GDP growth without a corresponding rise in traditional inflation. He cited that in the 1990s, Alan Greenspan foresaw that office modernization and the internet could drive non-inflationary growth, and allowed the economy to keep expanding. Bessent believes the U.S. has a strong chance of seeing a similar scenario again. When asked whether the Fed still needs to worry about potential inflation and whether interest rate cuts are possible this year or next, Bessent declined to comment. However, he argued that it is necessary to stay open-minded about the price or inflation impacts from the Iran conflict, and monitor inflation performance after those effects subside. Bessent also said an open mind is needed, as the AI boom could boost productivity and deliver disinflationary effects, helping inflation return to the Fed’s target level. He added that he believes Kevin Warsh will choose the optimal path that meets both the Fed’s inflation and growth mandates. Bessent also noted that Warsh previously took a hawkish stance on inflation.

5 hours ago

US stocks' intraday storage sector sees broad declines, with Western Digital and Seagate Technology both falling over 4%.

According to Bitget data, during U.S. stock trading hours, the storage sector saw broad declines: Western Digital (WDC) fell 4.47%, Seagate Technology (STX) dropped 4.17%, SanDisk (SNDK) declined 2.31%, and Micron Technology (MU) edged down 0.96%. Most optical communication concept stocks rose, with Corning (GLW) leading the gains at 9.75%, followed by Ciena (CIEN) up 3.24%, Coherent (COHR) rising 2.93%, Lumentum (LITE) gaining 2.61%, and Nokia (NOK) advancing 1.82%. Additionally, Marvell Technology (MRVL) fell 2.59% and Applied Optoelectronics (AAOI) declined 1.90%.

5 hours ago

During intraday trading in U.S. stocks, crypto-related concept stocks fell broadly, with MSTR dropping more than 7%.

According to Bitget market data, the three major U.S. stock indexes rose broadly: the Dow Jones Industrial Average gained 0.94%, the S&P 500 increased 0.60%, and the Nasdaq rose 0.63%. Crypto-related stocks fell across the board, with declines as follows: Strategy (MSTR) down 7.33%; Circle (CRCL) down 4.35%; Bitmine (BMNR) down 3.97%; Coinbase (COIN) down 3.73%; Robinhood (HOOD) down 3.70%; Gemini (GEMI) down 3.27%; Bullish (BLSH) down 3.25%; Sharplink (SBET) down 3.19%.

5 hours ago

Privacy Coins Defy Market Panic, Outperform All Other Crypto Sectors in 2025

PANews reported on March 17th that Neutron, a Cosmos ecosystem project, announced its transition to a long-term maintenance mode. Due to unfavorable market conditions over the past few months rendering its original strategy ineffective, and after failing to find alternative paths such as new product development, blockchain mergers and acquisitions, and a new leadership, Neutron has decided to prioritize the interests of users and builders by transitioning the network to a long-term maintenance state. DEX and Supervault will be suspended and enter a withdrawal-only mode no later than April 17th. dNTRN holders can redeem their NTRN through the Drop website or the Neutron application starting March 23rd. wstETH holders must bridge back to Ethereum by June 30th. The redemption mechanism for NTRN holders will be announced separately. Hadron Labs will be responsible for network maintenance until June 30th, 2026, after which a manual withdrawal guide will be released. Governance will transition from a custom system to the standard Cosmos staking model, inflation will be dynamically adjusted, and the validator set will be reduced.

The key timeline is as follows:

March 16: Supervault deposits have been disabled, and the BTCFi event has ended; March 23: dNTRN redemption opens (via Drop website or Neutron app). March 27: Deadline for price inquiry regarding the right to maintain rights; April: Proposed NTRN redemption mechanism (details pending); DEX and Supervault suspended operations and entered withdrawal-only mode. April 30: Fireblocks ended support for Neutron; Early May: Network upgrade, introducing new governance, staking, and token economic models; June 30: Hadron Labs maintenance is complete; the withdrawal portal is no longer supported; a manual withdrawal guide has been released. July to September: DAO commissions were gradually withdrawn and destroyed.

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PANews reported on April 24th that, according to SoSoValue data, the cryptocurrency market saw mixed performance. The Meme sector rose 1.23% in the last 24 hours, with Binance Life up 8.68%, ORDI (ORDI) up 7.03%, and FLOKI up 3.82%. Meanwhile, Bitcoin (BTC) fell 0.12%, fluctuating narrowly around $78,000; Ethereum (ETH) fell 1.65%, retreating to around $2,300.

In other sectors, the PayFi sector rose 0.99% in the last 24 hours, with Telcoin (TEL) up 4.98%; the DeFi sector rose 0.97%, with Ethena (ENA) up 3.75%; the AI ​​sector rose 0.70%, with SkyAI (SKYAI) up 27.57%; the Layer 2 sector rose 0.60%, with Arbitrum (ARB) up 2.52%; the Layer 1 sector rose 0.27%, with Zcash (ZEC) up 7.54%; the CeFi sector fell 0.01%, with FTX (FTT) remaining relatively strong, rising 1.33%.

Hong Kong-based stablecoin issuer First Digital Trust said Thursday it is expanding its FDUSD token to the Solana network.

First Digital USD (FDUSD), the fourth largest stablecoin by market capitalization issued by Hong Kong-based firm First Digital Trust, is coming to Solana as it seeks new ecosystems after rolling out products on Ethereum and BNB Chain (formerly Binance Smart Chain).

https://twitter.com/FDLabsHQ/status/1851584677246886112

In an Oct. 30 announcement on X, the team behind the stablecoin said the selection was due to Solana’s transactional output, calling it an “ideal solution for real-time payments and settlements.”

The team added that FDUSD’s upcoming integration with Solana is a “part of our broader strategy to build a versatile, resilient stablecoin ecosystem.” However, the stablecoin issuer didn’t explain when exactly it plans to launch FDUSD on Solana.

“With support on Ethereum, BNB Chain, Sui, and soon Solana, FDUSD is more globally accessible and liquid than ever.”

First Digital Trust

FDUSD quickly expands across blockchain networks Unveiled in 2023, FDUSD is issued under Hong Kong’s digital asset rules and backed by U.S. Treasury bills and bank deposits to keep its price anchored to $1. In addition to Ethereum and BNB Chain, FDUSD is also available on Sui Network.

Shortly following its launch, Binance opened trading in Bitcoin (BTC) and Ethereum (ETH) with FDUSD, wooing traders with zero fees. As a result, the stablecoin quickly became the fourth-largest stablecoin behind Tether’s (USDT), Circle’s (USDC) and MakerDAO’s (DAI), amassing more than $2.5 billion market capitalization, as of press time