April 3, 2024 1:24 PM
-
newsletter@mail.coinbase.com
How will BTC react to the halving?
Analysis of the upcoming Bitcoin halving event, crypto tax basics for reporting, and current crypto prices and insights.
Plus, crypto tax basics to keep in mind. View in browser 4/3/24 Bitcoin’s next halving is expected later this month and will see block rewards reduced from 6.25 BTC to 3.125 BTC. [Javier Zayas via Getty Images] What’s up? It’s Coinbase Bytes
April 3, 2024 1:24 PM
-
newsletter@mail.coinbase.com
How will BTC react to the halving?
Analysis of the upcoming Bitcoin halving event, crypto tax basics for reporting, and current crypto prices and insights.
Plus, crypto tax basics to keep in mind. View in browser 4/3/24 Bitcoin’s next halving is expected later this month and will see block rewards reduced from 6.25 BTC to 3.125 BTC. [Javier Zayas via Getty Images] What’s up? It’s Coinbase Bytes
<html><head>
<meta http-equiv="Content-Type" content="text/html; charset=utf-8"><meta name="viewport" content="width=device-width"><meta content="IE=edge"><style id="reset-style" type="text/css">
<!--
body, table, td, tr, p
{font-family:Helvetica Neue,Helvetica,Arial,sans-serif}
body
{margin:0;
padding:0}
table, td, tr
{vertical-align:top;
border-collapse:collapse}
*
{line-height:inherit}
a[x-apple-data-detectors='true']
{color:inherit!important;
text-decoration:none!important}
a
{color:#1957f5}
-->
</style><style id="media-query" type="text/css">
<!--
@media(max-width:590px){
.cta_button
{width:100%!important}
.block-grid
{width:100%!important;
max-width:100%!important}
.mobile_hide
{min-height:0;
max-height:0;
max-width:0;
display:none;
overflow:hidden;
font-size:0}
.desktop_hide
{display:block!important;
max-height:none!important}
}
-->
</style></head><body style="margin:0; padding:0; background-color:#FFFFFF; font-family:Helvetica Neue,Helvetica,Arial,sans-serif; font-size:16px; color:#0A0B0D"><span style="color:transparent; visibility:hidden; display:none; opacity:0; height:0; width:0; font-size:0">Plus, crypto tax basics to keep in mind.</span><img src="https://links.coinbase.com/e/eo?_t=3aca56371967418192255878e9689713&_m=6e546d43b7bc44aca99a44a723c8218b&_e=u56i1N4VlmY4_6M544ppuq9Adv4M21V2dVWr2GftOJEjIEwzWajcNBqeNuxuGBClQqssVFxICzNT1VVmpon6HkPRtYZ-nfGV4uxjVOi1wCazmnEPtWP6CLNz9amBlHt4MHr4OPlZv6jxG3uy4XBpBNxPXD5XesMaE_WcgjJnJKQ%3D" width="1" height="1" style="border:0; width:1px; height:1px; border-width:0px!important; display:none!important; line-height:0!important"><div id="root" style="min-width:320px; background-color:#FFFFFF; width:100%"><div class="block-grid" style="min-width:320px; max-width:570px; word-break:break-word; margin:0px auto"><div style="padding:0px 10px 10px"><div style="text-align:right; margin-bottom:24px"><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(91,97,110); text-decoration:none; line-height:1.5; font-size:12px">View in browser</a></div><div style="margin-bottom:20px"><table style="width:100%"><tbody><tr><td style="text-align:left; vertical-align:middle"><a href="#" title="Coinbase Bytes" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/cbytes-4x.png" height="36" style="display:block; height:36px"></a></td><td style="text-align:right"><p style="font-size:20px; color:rgb(10,11,1); margin:10px 0px 0px">4/3/24</p></td></tr></tbody></table></div><a href="#" target="_blank" rel="noopener noreferrer"><img src="https://images.ctfassets.net/q5ulk4bp65r7/t8XUf2aW2m00PC2EChTsf/a6469a3cda52f669b7bf5ca764f6ca43/image1.jpg" width="100%" style="display:block; width:100%"></a><p style="margin:16px 0px 0px; line-height:1.5; word-break:break-word; font-size:12px; color:rgb(91,97,110)">Bitcoin’s next halving is expected later this month and will see block rewards reduced from 6.25 BTC to 3.125 BTC. [Javier Zayas via Getty Images]</p><p style="margin:48px 0px 16px; font-size:32px; line-height:1.26; word-break:break-word"><strong>What’s up? It’s Coinbase Bytes</strong></p><p style="margin:0px; line-height:1.6; word-break:break-word">There’s never a dull moment on the blockchain. Here’s what you need to know this week:</p><ul style="margin:10px 0px; padding-left:24px; line-height:1.6"><li style="margin:0px; padding:6px 0px"><strong>How Bitcoin’s halving could impact crypto markets. </strong>And what analysts think might happen next.</li><li style="margin:0px; padding:6px 0px"><strong>Crypto tax basics you should know. </strong>A quick review of the crypto activities you need to report this tax season.</li><li style="margin:0px; padding:6px 0px"><strong>This week in numbers. </strong>The total value of U.S. Treasuries on blockchains, the size of Taiwan’s new crypto industry association, and more stats to know.</li></ul><p style="margin:0px; padding:0px"></p><div class="desktop_hide" style="display:none; max-height:0; overflow:hidden"><table style="width:100%; table-layout:fixed; margin:0"><tbody><tr><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Bitcoin</strong></p><p style="margin:8px 0px">$65,887.91 </p><p style="margin:0; font-size:12px">-3.68% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Ethereum</strong></p><p style="margin:8px 0px">$3,320.03 </p><p style="margin:0; font-size:12px">-4.87% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Solana</strong></p><p style="margin:8px 0px">$186.31 </p><p style="margin:0; font-size:12px">+2.03% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>XRP</strong></p><p style="margin:8px 0px">$0.58 </p><p style="margin:0; font-size:12px">-6.04% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Dogecoin</strong></p><p style="margin:8px 0px">$0.18 </p><p style="margin:0; font-size:12px">-3.59% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Cardano</strong></p><p style="margin:8px 0px">$0.58 </p><p style="margin:0; font-size:12px">-10.06% </p></div></td></tr></tbody></table></a></td></tr></tbody></table></div><div class="mobile_hide"><table style="width:100%; table-layout:fixed; margin:0"><tbody><tr><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Bitcoin</strong></p><p style="margin:8px 0px">$65,887.91 </p><p style="margin:0; font-size:12px">-3.68% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Ethereum</strong></p><p style="margin:8px 0px">$3,320.03 </p><p style="margin:0; font-size:12px">-4.87% </p></div></td></tr></tbody></table></a></td><td style="padding-top:40px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/up-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Solana</strong></p><p style="margin:8px 0px">$186.31 </p><p style="margin:0; font-size:12px">+2.03% </p></div></td></tr></tbody></table></a></td></tr><tr><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>XRP</strong></p><p style="margin:8px 0px">$0.58 </p><p style="margin:0; font-size:12px">-6.04% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Dogecoin</strong></p><p style="margin:8px 0px">$0.18 </p><p style="margin:0; font-size:12px">-3.59% </p></div></td></tr></tbody></table></a></td><td style="padding-top:20px"><a href="#" target="_blank" style="text-decoration:none; color:#0A0B0D"><table><tbody><tr><td style="padding:0; vertical-align:top"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/down-arrow.png" height="12" width="12" style="height:12px; width:12px; margin:2px 0px 0px 0px; vertical-align:top"> </td><td style="padding:0; vertical-align:top"><div style="text-align:left; margin:0px 0px 0px 10px; line-height:1"><p style="margin:0"><strong>Cardano</strong></p><p style="margin:8px 0px">$0.58 </p><p style="margin:0; font-size:12px">-10.06% </p></div></td></tr></tbody></table></a></td></tr></tbody></table></div><p style="margin:20px 0px 0px; line-height:1.5; word-break:break-word; color:rgb(91,97,110); font-size:12px">Price changes are for the past week, ending on Apr 3, 2024 at 07:28 PM UTC</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>See the latest prices</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>HALVE TIME </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>The next Bitcoin halving is almost here. What happens next?</strong></p></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">One of the most anticipated events of the crypto calendar is now just weeks away: the next <a href="#" target="_blank" rel="noopener noreferrer">Bitcoin halving</a>, which is expected to arrive sometime between April 16 and April 22. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Every four years, a mechanism coded into Bitcoin’s blockchain cuts the block reward earned by miners in half. This time around that means that each new block of Bitcoin that’s mined — roughly every ten minutes — will yield 3.125 BTC, down from the current 6.25 BTC block reward.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">For much of the last few weeks, BTC prices have hovered around $70,000 — but at the same time, <a href="#" target="_blank" rel="noopener noreferrer">volatility has begun to spike</a>. Prices <a href="#" target="_blank" rel="noopener noreferrer">dipped</a> to around $65,000 on Tuesday (in part over new economic data showing that U.S. manufacturing activity rose unexpectedly, driving the dollar to levels last seen in November). </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">So, how might the halving impact crypto markets moving forward? There are a wide range of theories about what could happen. Let’s dig in. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Why is the halving such a big deal?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Bitcoin is designed to be a scarce, inflation-resistant asset. One mechanism it uses to achieve this is the <a href="#" target="_blank" rel="noopener noreferrer">halving</a>. Approximately every four years (or every 210,000 Bitcoin blocks, to be exact) the amount of new BTC created by mining declines by half until all 21 million BTC are mined sometime next century.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Historically, a lot of <a href="#" target="_blank" rel="noopener noreferrer">bitcoin’s gains</a> came in the 12 to 18 months after a halving, when newly diminishing supply accompanied surging demand. At the time of 2020’s halving, for instance, one BTC cost less than $10,000. By the peak in 2022, prices had climbed to more than $67,000. (Remember: Past performance is not indicative of future results.)</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>What do experts think will happen with bitcoin’s price this time?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Opinions vary widely. On the bullish side, some market watchers believe that simple economics point to post-halving gains, as a newly reduced supply meets 2024’s high demand. The CEO of asset manager Bitwise, which launched a spot BTC ETF in January, <a href="#" target="_blank" rel="noopener noreferrer">suggests</a> that “the April 2024 Bitcoin halving may be the most impactful we’ve seen.”</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Similarly, the CEO of hedge fund Morgan Creek Capital <a href="#" target="_blank" rel="noopener noreferrer">predicts</a> that post-halving prices could reach $150,000 this year: “The big move happens post-halving. It starts to become more … parabolic toward the end of the year.” </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Other analysts are cautious about applying the lessons of past halvings to this year’s cycle. A <a href="#" target="_blank" rel="noopener noreferrer">recent report</a> from Coinbase Institutional, for example, noted that the small sample size of just three prior halvings makes it hard to definitively predict what to expect.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Instead, as David Duong, head of institutional research at Coinbase, notes, the halving’s main impact could be the flurry of new attention the event brings to bitcoin, as well as other contextual factors like market sentiment and adoption trends. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">The current rally, for instance, is largely a result of new phenomena, including spot ETF inflows and rising institutional interest. As a result, Duong notes, bitcoin’s market has been “irrevocably altered,” which could mean that “bitcoin's response to the upcoming halving may not necessarily mirror its performance in prior cycles.”</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>How will the halving impact bitcoin miners?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Because the halving cuts Bitcoin’s block reward in half, mining firms <a href="#" target="_blank" rel="noopener noreferrer">have been bracing</a> for what could be essentially a 50% reduction in revenue.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">This has meant firms like Marathon, CleanSpark, and Riot have been raising new capital, buying new properties for mining operations, and purchasing more efficient mining machines to replace old ones. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Meanwhile, some industry watchers <a href="#" target="_blank" rel="noopener noreferrer">fear that some smaller miners</a> could be forced to leave the network due to the cost increases associated with this year’s halving. Currently, analysts <a href="#" target="_blank" rel="noopener noreferrer">estimate it costs</a> between $10,000 and $15,000 to mine a single bitcoin, with costs rising as high as $40,000 post-halving. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">In the long term, transaction fees generated by bitcoin’s growing adoption should <a href="#" target="_blank" rel="noopener noreferrer">eventually make up</a> for the reduction in mining reward, but those fees may be too low for now to sustain some miners.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>Will the halving cause a bitcoin “supply shock”?</strong></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">One sentiment that’s gotten a lot of attention in the cryptosphere recently has been the potential for a bitcoin “<a href="#" target="_blank" rel="noopener noreferrer">supply shock</a>” — where a rise in prices triggered by bitcoin’s ETF-fueled demand meets a reduction in new supply caused by the halving. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">While <a href="#" target="_blank" rel="noopener noreferrer">social media posts</a> about BTC’s supply “running low” have become more common, <a href="#" target="_blank" rel="noopener noreferrer">Coinbase Institutional</a> suggests such fears could be unfounded. That’s because:</p><ul style="margin:10px 0px 0px; padding-left:24px; line-height:1.6"><li style="margin:0px; padding:6px 0px">Of the approximately 20 million BTC that have been mined to date, about 85% are in wallets of long-term holders. But some of these holders are likely to sell at least a portion of their BTC for a profit during rallies like we’ve seen this year. </li><li style="margin:0px; padding:6px 0px">Around 3 million BTC belong to short-term holders who are even more likely to take profits in an uptrend. </li><li style="margin:0px; padding:6px 0px">About 2 million BTC are controlled by miners, who are likely to sell at least some of their reserves to grow their operations or cover costs. </li></ul><p style="margin:0px; padding:0px"></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">As Coinbase’s Duong notes, “By not accounting for these meaningful sources of supply, the narrative of inevitable scarcity due to reduced mining rewards and steady ETF demand is an oversimplification.” </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>The bottom line….</strong> </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">While a key narrative around the halving is that it <i>could</i> spark the next big crypto rally, the one thing that can definitely be said is that it’s hard to predict exactly what might happen, particularly because each cycle has its own set of unique circumstances. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">For instance, this is the first halving cycle which saw bitcoin breach its all-time high <i>before</i> the halving, which could mean that the effect has already been priced in by savvy traders. On the other hand, the collective belief that the halving might drive prices up could result in behavior that results in a rally. As always, only time will tell. </p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Read BTC halving insights</strong></a></div><a href="#" target="_blank" rel="noopener noreferrer"><div class="desktop_hide" style="display:none; max-height:0px; overflow:hidden"><img src="https://images.ctfassets.net/q5ulk4bp65r7/11ethN8SqaxfTpSQp5dFNK/2a692d99adc4eceabaa8a5da01590f6e/650x488px_mobile__1_.png" width="100%" style="display:block; width:100%; margin:64px 0px"></div><div class="mobile_hide"><img src="https://images.ctfassets.net/q5ulk4bp65r7/2EIy1P2xeUhtobZGk8Vi8V/f8427ab27cd5eb64dfcd50efe733d669/1060x408px_desktop__1_.png" width="100%" style="display:block; width:100%; margin:64px 0px"></div></a><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>TAX SEASON </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>Which crypto transactions are taxable (and which aren’t!)</strong></p></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">If you’re one of the <a href="#" target="_blank" rel="noopener noreferrer">52 million Americans</a> that own crypto and you’re unsure how to report certain transactions on your federal income tax return, now’s the time to learn.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">The last thing you want is an “<a href="#" target="_blank" rel="noopener noreferrer">educational</a>” letter from the Internal Revenue Service (IRS) asking for <a href="#" target="_blank" rel="noopener noreferrer">back taxes</a> or interest because of improperly reported crypto transactions. </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">With our help, you’ll be able to file confidently and set yourself up for success. Here are some key basics you’ll need to know.</p><ul style="margin:10px 0px 0px; padding-left:24px; line-height:1.6"><li style="margin:0px; padding:6px 0px"><strong>Many types of crypto transactions are </strong><a href="#" target="_blank" rel="noopener noreferrer"><strong>taxable events</strong></a>, each with its own set of rules and exceptions. If you sold, converted, spent, earned, or staked crypto, for example, you’ll need to report your transactions to the IRS. </li><li style="margin:0px; padding:6px 0px"><strong>Your crypto gains are taxed at different rates</strong>, either as <a href="#" target="_blank" rel="noopener noreferrer">capital gains</a> or as <a href="#" target="_blank" rel="noopener noreferrer">ordinary income</a>, depending on how you got your crypto and how long you held on to it, among other factors. The IRS treats selling crypto a lot like selling stock — you’ll generally pay a lower rate if you hold onto it for longer than a year before you sell it.</li><li style="margin:0px; padding:6px 0px"><strong>Converting crypto, like swapping BTC for ETH, is taxable.</strong> This is because you’ve technically sold your BTC to buy ETH, “realizing” either a gain or a loss. Same goes for spending: If you bought $10,000 of BTC and, after its value increased to $30,000, used your BTC to buy a car worth $30,000, you’ll have a taxable gain.</li><li style="margin:0px; padding:6px 0px"><strong>Simply buying crypto with cash isn’t taxable</strong>, so you won’t have to report it on your federal tax return. You also won’t need to report transferring coins between wallets you own or gifting up to $17,000 (for 2023) in crypto to a friend or family member. And if you’ve donated crypto directly to a 501(c)(3) charitable organization, you might even be able to claim a <a href="#" target="_blank" rel="noopener noreferrer">deduction</a>, according to the <a href="#" target="_blank" rel="noopener noreferrer">latest IRS guidance</a>.</li></ul><p style="margin:0px; padding:0px"></p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word"><strong>The bottom line….</strong> </p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">It’s important (and legally required!) to report your activity and pay the necessary taxes. The penalty for getting this wrong may be steep, so be sure to consider all your crypto transactions.</p><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">If you’re a Coinbase customer, check out our <a href="#" target="_blank" rel="noopener noreferrer">tax reports and tools</a>, or use a <a href="#" target="_blank" rel="noopener noreferrer">trusted partner</a> like <a href="#" target="_blank" rel="noopener noreferrer">TurboTax</a>, <a href="#" target="_blank" rel="noopener noreferrer">H&R Block</a>, <a href="#" target="_blank" rel="noopener noreferrer">Crypto Tax Calculator</a> or <a href="#" target="_blank" rel="noopener noreferrer">CoinTracker</a> to organize your taxable crypto activities. And if you’re having trouble navigating your tax situation on your own, please consult a professional. </p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>Read up on crypto tax basics</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>NUMBERS TO KNOW </strong></p></td></tr></tbody></table></div><h1><strong>$111 billion</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Record-setting March trade volume for the new spot BTC ETFs — up from around $42.2 billion in February (<a href="#" target="_blank" rel="noopener noreferrer">according to</a> Yahoo Finance data compiled on The Block Data Dashboard). </p><h1><strong>$1.15 billion</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Value of <a href="#" target="_blank" rel="noopener noreferrer">U.S. Treasury notes</a> that have been <a href="#" target="_blank" rel="noopener noreferrer">tokenized</a> on public blockchains including Ethereum, Polygon, and Stellar. Finance giants like Franklin Templeton and <a href="#" target="_blank" rel="noopener noreferrer">BlackRock</a> have helped tokenized U.S. Treasuries achieve 1,000% growth since January 2023, <a href="#" target="_blank" rel="noopener noreferrer">according to</a> crypto asset manager 21.co. (Tokenization refers to the process of tying real-world assets to blockchain-based tokens.) </p><h1><strong>$1 billion</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Reported valuation of Merkle Manufactory — parent company of <a href="#" target="_blank" rel="noopener noreferrer">buzzy onchain social protocol Farcaster</a> — after <a href="#" target="_blank" rel="noopener noreferrer">a new investment round</a> led by Paradigm. The company, which was founded by a pair of former Coinbase employees, got a major boost in February after it rolled out a new feature called Frames, which allows Farcaster apps to offer a wide range of experiences inside of users’ feeds. </p><h1><strong>2.27 million</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Number of transactions on the Coinbase-incubated L2 blockchain Base on March 29, a new all-time high. As the Block <a href="#" target="_blank" rel="noopener noreferrer">reports</a>, “Decentralized exchanges on Base also set record-high volumes [on March 29] with a total 24-hour volume of $657.19 million, according to data from Defi Llama.”</p><h1><strong>22</strong></h1><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Number of crypto firms that <a href="#" target="_blank" rel="noopener noreferrer">make up</a> Taiwan’s new cryptocurrency “industry association,” which is expected to generate self-supervisory rules based on guidelines from the Financial Supervisory Commission, the country’s financial regulator. Taiwan’s Ministry of the Interior approved the working group last Friday, after crypto firms began laying the groundwork for the association last September.</p><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>TOKEN TRIVIA </strong></p></td></tr></tbody></table><p style="margin:5px 0px 0px; font-size:32px; line-height:1.26; word-break:break-word"><strong>Approximately how many people use crypto around the world?</strong></p></div><div style="margin-top:16px"><table style="line-height:1.6; word-break:break-word"><tbody><tr><td style="padding-right:12px"><strong>A</strong></td><td>150 million</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>B</strong></td><td style="padding-top:12px">400 million</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>C</strong></td><td style="padding-top:12px">700 million</td></tr><tr><td style="padding-right:12px; padding-top:12px"><strong>D</strong></td><td style="padding-top:12px">1 billion</td></tr></tbody></table></div><p style="margin:16px 0px 0px; line-height:1.6; word-break:break-word">Find the answer at the end of the email.</p><div class="cta_button" style="margin:24px 0px 0px; padding:0px; width:50%"><a href="#" target="_blank" rel="noopener noreferrer" style="display:block; margin:0px; line-height:1.2; font-size:16px; text-decoration:none; color:rgb(255,255,255); background-color:rgb(0,82,255); border-radius:30px; text-align:center; padding:18px 0px"><strong>See more crypto insights</strong></a></div><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><div><table style="margin:0px; padding:0px"><tbody><tr><td style="margin:0px; padding-right:11px; vertical-align:middle"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/dot-1.5x.png" width="12" height="12" style="display:block; width:12px; height:12px"></td><td style="margin:0px; padding:0px; vertical-align:middle"><p style="margin:0px; font-size:16px; letter-spacing:0.075em"><strong>NOW TRADING ON COINBASE </strong></p></td></tr></tbody></table></div><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>RONIN</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/d3037e80c17f4843e796a80d107dbd1732557805636957a0e6c2d0a2f36dea3e.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Ronin is a low-cost and highly efficient network purpose-built for onchain gaming. </p></a><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>AKT</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/6d08cfbf193b659d530563e609d29b5d79fd400e3631b1b3c815212a9178456d.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Akash is a blockchain network that supports a decentralized compute marketplace. </p></a><a href="#" target="_blank" rel="noopener noreferrer" style="color:rgb(10,11,13); text-decoration:none"><table style="margin:16px 0px 0px; width:100%"><tbody><tr><td style="font-size:32px; line-height:1.26; word-break:break-word; vertical-align:middle; white-space:nowrap"><strong>ARKM</strong></td><td style="vertical-align:middle; padding-left:12px"><img src="https://asset-metadata-service-production.s3.amazonaws.com/asset_icons/529984b8cf0b9bc27992f71177e19bb81e2b9a06e7309a863f7e6e36745a7fd8.png" width="26" height="26" style="display:block; width:26px; height:26px; vertical-align:middle"></td><td style="vertical-align:middle; text-align:right; width:100%"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Newsletter%20Assets/newlistings_light.png" width="21" height="18" style="width:21px; height:18px; vertical-align:middle"></td></tr></tbody></table><p style="margin:0px; line-height:1.6">Arkham is a blockchain intelligence platform that provides entity-level insights through onchain data analysis. </p></a><table width="100%" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; min-width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top; min-width:100%; padding:48px 0px"><table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" role="presentation" style="table-layout:fixed; vertical-align:top; border-spacing:0px; border-collapse:collapse; border-top:2px solid rgb(222,224,226); width:100%"><tbody><tr style="vertical-align:top"><td valign="top" style="word-break:break-word; vertical-align:top"><span></span></td></tr></tbody></table></td></tr></tbody></table><p style="margin:0px; line-height:1.6; word-break:break-word"><strong>Trivia answer</strong></p><table style="margin:12px 0px 0px; line-height:1.6; word-break:break-word"><tbody><tr><td style="padding-right:12px"><strong>B</strong></td><td>400 million</td></tr></tbody></table><table style="margin:48px 0px 0px"><tbody><tr><td style="text-align:left"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Rebrand%20Assets/coinbase_footer_wordmark.png" alt="Coinbase" height="26" style="display:block; height:26px; margin-bottom:24px"></td></tr><tr><td><a href="#" title="coinbase ios app" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Icons/app_apple.png" alt="Download on iOS App store" height="46" style="display:block; height:46px; margin-right:8px"></a></td><td><a href="#" title="coinbase android app" target="_blank" rel="noopener noreferrer"><img src="https://d15k2d11r6t6rl.cloudfront.net/public/users/Integrators/669d5713-9b6a-46bb-bd7e-c542cff6dd6a/3aca56371967418192255878e9689713/Icons/app_google.png" alt="Download on Google Play" height="46" style="display:block; height:46px"></a></td></tr></tbody></table><div style="margin-top:24px"><p style="font-size:12px; line-height:1.8; word-break:break-word; color:rgb(91,97,110)">Disclaimer: This material is the property of Coinbase, Inc., its parent and affiliates ("Coinbase"). The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Coinbase or its employees and summarizes information and articles with respect to cryptocurrencies or related topics that the author believes may be of interest. This material is for informational purposes only, and is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations or (iii) an official statement of Coinbase. No representation or warranty is made, expressed or implied, with respect to the accuracy or completeness of the information or to the future performance of any digital asset, financial instrument or other market or economic measure. The information is believed to be current as of the date indicated on the materials. Recipients should consult their advisors before making any investment decision. Coinbase may have financial interests in, or relationships with, some of the entities and/or publications discussed or otherwise referenced in the materials. Certain links that may be provided in the materials are provided for convenience and do not imply Coinbase's endorsement, or approval of any third-party websites or their content. <br><br>Coinbase is licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services. <br><br>© Coinbase 2024 | Coinbase Inc. <br>248 3rd St #434 <br>Oakland | CA 94607 | US <br><a href="#">www.coinbase.com</a> <br><a href="#">Get in touch</a> <br><br><br><a href="#" style="text-decoration:none">Unsubscribe</a> from future editions of Coinbase Bytes.</p></div></div></div></div><img alt="" src="http://comm.coinbase.com/CI0/0100018ea5a24643-8c4bd958-5dcd-4dc8-ad2a-ed6036893ade-000000/tQPKs-tT2q1eCZ0O071foKjKxUQph628zCNu1dK9vwg=347" style="display:none; width:1px; height:1px"> </body></html>
Try
Similar Emails
Who What Wear
It's going to be the summer of cool-girl elegance—29 pieces destined to sell out
Content Sharing
Other
National Geographic
Our Top 10: Corpse flowers; a supersized shark mystery; Brad Pitt's face problem; why voices change with age
Content Sharing
Books & Publishing
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Save to Board
This is some text inside of a div block.
This is some text inside of a div block.
1 selected
DoneYou have reached your plans limit
To create or access more boards you need to upgrade.
