Today’s Sponsor:

Good Morning Crypto Enthusiasts!

It’s been a wild weekend for our research team here at UseTheBitcoin.com wishing you all health, wealth, and prosperity and hope you’re ready for the volatile period ahead.

1. Iranian Drone Attack Spurs Crypto Sell-off: Reports of Iranian drone attack on Israel triggered a significant sell-off in the cryptocurrency market, with Bitcoin, Ethereum, and other major digital assets experiencing sharp price declines.

2. Hong Kong Embraces Crypto ETFs: Hong Kong approved the launch of spot Bitcoin and Ether exchange-traded funds (ETFs), signaling its commitment to fostering innovation and embracing digital assets.

3. Analyst Warning of $5B BTC Miners Dump: Analysts anticipate a significant outflow of BTC from miners, potentially amounting to $5 billion worth of cryptocurrency, as the Bitcoin halving approaches.

4. 💡Feature of the Day - IRS Prepares for Crypto Tax Crackdown: The IRS is gearing up for increased scrutiny of crypto-related tax evasion cases, citing a growing trend of crypto tax fraud and evasion. IRS criminal investigation chief Guy Ficco emphasized the agency's enhanced capabilities in combating crypto-related tax crimes and urged taxpayers to fulfill their obligations to avoid potential legal repercussions.

5. 📈Technical Analysis Masterclass - Did you know why Bitcoin encountered a sharp drop over the weekend? Catch everything about crypto from UseTheBitcoin’s latest video “Alert! Bitcoin is down” to learn more!

   
   All this and more in today’s headlines!

📰 News Highlights:

🚀 Iranian Drone Attack Spurs Crypto Sell-off [Source][Source][Source]

Reports of an imminent Iranian drone attack on Israel sent shockwaves through the cryptocurrency market, triggering a sharp sell-off across major digital assets.

Bitcoin and Ethereum, among others, witnessed significant price declines as investors reacted to the escalating geopolitical tensions.

Bitcoin, which had surged to a peak of around $68,000, plummeted by nearly 8% to approximately $62,000 in response to the news. Similarly, Ethereum experienced a 9% drop, trading at around $3,000, while tokens like BNB and Solana recorded double-digit percentage declines.

Galaxy Digital CEO Mike Novogratz remained optimistic despite the market turmoil, suggesting that Bitcoin would rebound and continue its upward trajectory. However, concerns lingered as the conflict unfolded, with fears of a prolonged regional confrontation casting a shadow over market sentiment.

Despite the initial panic-driven sell-off, Bitcoin managed to recover some lost ground.

🏦 Hong Kong Embraces Crypto ETFs [Source][Source][Source][Source][Source]

In a significant move aimed at bolstering its position as a global crypto hub, Hong Kong approved the launch of spot Bitcoin and Ether exchange-traded funds (ETFs). Several asset management firms, including China Asset Management, Harvest Global, Bosera, and HashKey, received regulatory approval to introduce retail asset management services related to spot crypto ETFs.

China Asset Management's Hong Kong unit secured approval to offer spot Bitcoin and Ether ETFs in collaboration with OSL and BOCI International.

Similarly, Harvest Global Investments obtained in-principle approval from the Securities and Futures Commission (SFC) for two spot crypto ETFs, while Bosera Asset Management and HashKey Capital received conditional approval for their respective offerings.

💰 Analyst Warning of $5B BTC Miners Dump [Source][Source]

As the Bitcoin halving approaches, analysts anticipate a significant outflow of BTC from miners, potentially amounting to $5 billion worth of cryptocurrency. Markus Thielen, head of research at 10x Research, warned of a prolonged selling spree by miners following historical patterns observed in previous halving cycles.

Thielen highlighted the potential impact of miner liquidations on Bitcoin's price trajectory, suggesting that the market could experience sideways movement for several months post-halving.

Despite the short-term uncertainties surrounding the halving event, Thielen expressed optimism about Bitcoin's long-term prospects, citing historical precedents of post-halving rallies and supply-demand dynamics.

💡 Feature of the Day: 

💼 IRS Prepares for Crypto Tax Crackdown [Source][Source]

As the tax reporting season unfolds, the IRS gears up for a surge in crypto-related tax evasion cases, signaling increased scrutiny of digital asset transactions.

IRS criminal investigation chief Guy Ficco warned of a growing trend of crypto tax fraud and evasion, attributing the rise to the widespread adoption of cryptocurrencies.

Ficco emphasized the IRS's enhanced capabilities in combating crypto-related tax crimes, citing partnerships with blockchain analysis firms and law enforcement agencies, and urging taxpayers to fulfill their obligations and avoid potential legal repercussions.

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🫨 What’s Buzzing? / 📜 Your Daily Thread:

📉 Alert! Bitcoin is down!

Crypto market sees widespread decline, with major coins like Bitcoin, Ethereum, Solana, and BNB facing significant losses.

Market Manipulation:

• Whales and institutions manipulate prices ahead of Bitcoin halving to create better buying opportunities.

Trading Strategies:

• Caution against panic selling and leveraged trading due to high risk of liquidation.

• Emphasis on spot trading to mitigate risk and avoid losses.

Investment Perspective:

• Ideal buying levels around $63k to $65k, considering current market conditions.

• Encourages patience and a long-term perspective amid fluctuations.

For a more detailed look on what’s happening and why it’s happening, subscribe to UseTheBitcoin’s YouTube channel and check out the latest video “Alert! Bitcoin is down” for updated crypto news and insights.

😂 Crypto Meme of the Day: 

And that’s it for this today.

See you all for tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com