Daily Quotes (January 1, 2024 10:30 am)
ChainDD's market data on January 1 shows that the combined DD index and CoinMarketCap quotes are:
BTC was at $93,705.72, down about 1.10% in 24 hours;
ETH was at $3,413.51, up about 1.18% in 24 hours;
BNB was at $698.78, down about 2.13% in 24 hours;
DOT was at $7.03, down about 0.08% in 24 hours;
DOGE was trading at $0.3205, down about 0.24% in 24 hours.
Cryptocurrency News
IRS issues temporary cryptocurrency tax relief measures to benefit CeFi exchange users in 2025
The U.S. Internal Revenue Service (IRS) has issued a temporary relief measure that is expected to benefit CeFi exchange users in 2025. The relief measure addresses concerns raised by the final version of Section 6045 of the custodial broker-dealer rule, which will take effect on January 1, 2025 and require the use of the first-in, first-out (FIFO) accounting method for digital assets unless a preferred method such as highest-in, first-out (HIFO) or Spec ID is selected.
Shehan Chandrasekera, Head of Tax Strategy at Cointracker, explained this issue, emphasizing that 'as of January 1, 2025, almost all CeFi brokers will not be prepared to support Spec ID.' This lack of preparation will force many cryptocurrency holders to default to FIFO accounting, potentially leading to a higher tax burden during asset sales. He described, 'In a bull market environment, this could be disastrous for many taxpayers as you would unintentionally sell the earliest purchased assets (often with the lowest cost basis) first while inadvertently maximizing your capital gains.'
The IRS's temporary relief allows taxpayers to continue using their own records or tax software to identify the specific units being sold. The relief period only applies to CeFi transactions from January 1, 2025, to December 31, 2025. After this date, taxpayers will need to formally choose an accounting method with their brokers. Chandrasekera also emphasized the importance of syncing tax software with broker setups.
Bitcoin miners' revenue in December reached $1.41 billion, the highest since April this year.
Data from The Block shows that Bitcoin miners' revenue in December reached $1.41 billion, the highest since April this year; an increase of $200 million from November ($1.21 billion), reflecting a month-on-month growth of about 16.5%. Of this, $1.37 billion came from block rewards, and $38.9 million came from transaction fees.
Hong Kong-listed company Yuxing Technology: Sold approximately 6.3 million USDT and purchased 78.2 BTC in the past six months.
The Hong Kong-listed company Yuxing Technology announced that it has conducted a series of transactions in the open market from July 25, 2024, to December 31, 2024, including:
(i) Purchased approximately 78.2 units of Bitcoin at an average price of $80,960, totaling approximately $6.3 million (excluding transaction costs);
(ii) Sold approximately 6.3 million units of USDT at an average price of $1, totaling approximately $6.3 million (excluding transaction costs). The USDT sold under this transaction were all used to convert into an equivalent amount of Bitcoin for the purchase.
Robinhood hinted that it will offer cryptocurrency rewards to eligible users.
Robinhood revealed in a post on X that it plans to distribute crypto rewards to eligible users who access the countdown screen for the platform at 9:30 AM Beijing time on January 1. Users must have an active Robinhood Crypto account to receive the rewards, which will be provided via notification within a week after the countdown ends. Unclaimed rewards will expire after 30 days.
The platform requires recipients to keep the value of the reward in their Robinhood account for at least one year. Although the specific nature of the 'New Year surprise' has not yet been disclosed, social media posts suggest that it may involve Bitcoin or other digital assets. Users need to have the latest version of the Robinhood app and an established crypto wallet to participate.
The Federal Reserve's reverse repo mechanism attracted $473.5 billion in inflows on the last day of 2024, the largest scale since early summer.
A large influx of cash into the Federal Reserve's reverse repo facility on Tuesday, the last trading day of 2024, pushed usage to its highest level since early summer. Money market funds and other eligible institutions deposited $473.5 billion on the Fed's balance sheet. This surge in usage was not unexpected, as there are often significant cash inflows to the Fed at quarter-end and year-end when companies manage their balance sheets. The cash inflow on Tuesday was the highest since $664.6 billion flowed in on the last trading day of the second quarter, exceeding the $465.6 billion at the end of the third quarter on September 30.
