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Samsung & Bitcoin Functionality, IRS Crypto Letters, DeFi Market News
DAILY
August 15  |  3 min read

How Low Can You Go

BeQuant Analytics, a daily cryptocurrency market analysis contributor

Market sentiment collapsed in dramatic fashion, as concerns over the DeFi market and outflows continue to garner attention. Specifically, Bitcoin is now trading below the technically important $10k level and Ethereum broke below the $200 level. While the recent selling does provide relative value traders with an opportunity to capture significant spread widening, it looks unlikely that the cryptocurrency market will try to base around current levels. Another area of the market to keep an eye on with the DeFi trouble and outflows accelerating, is that belonging to the stablecoins. Further downside in Bitcoin and Ethereum will inevitably test the stability of the stablecoin pegging systems. Specifically, now that we know Tether (USDT) is not 100% backed by fiat, together with the ongoing NYAG case, USDT may end up trading at levels not seen before. The table below shows the severity of the recent funds outflows from some of the platforms. For the panic selling to abate, market participants need to see more accountability and transparency from these platforms, specifically, 3rd party audits and clear outlines of how said platforms approach risk management and hedging.

Decentralized Finance (DeFi) market – DeFi Pulse

Source: Defi Pulse

In other news, the US Internal Revenue Service (IRS) is sending another round of warning letters to cryptocurrency users, this time to taxpayers it believes to have misreported income from exchange transactions. In addition to the three letters sent last month to crypto traders advising them they may have incorrectly filed their taxes, the IRS is now also telling certain investors that they did, in fact, report the wrong amount of income from crypto transactions.

Elsewhere, Samsung has integrated Bitcoin (BTC) functionality into its blockchain-enabled smartphones. The move comes months after the flagship Galaxy S10 range was launched in March with a “Blockchain Keystore” offering cryptocurrency storage and transactions for ether (ETH) and related ERC-20 tokens, but which notably excluded the number one cryptocurrency by market cap. The South Korean tech giant has now included bitcoin features in the developer kit (SDK) for several S10 models (S10e, S10, S10+, and S10 5G), as well as the Note10 and Note10+ devices.

Thank you for reading,

The BeQuant’s Analytics team