Cryptocurrency market lower, Bitcoin trading at about $42,000
Ethereum and Dogecoin also down after last week
Cryptocurrency was trading lower across the board early Monday morning.
Bitcoin was down 0.70%, trading at approximately $42,020, while Ethereum was down more than 2.2% trading at $2,850, Coindesk reported. Dogecoin was also down, trading at 14.4 cents, down 1.40%.
Last week, the report said, Bitcoin was trading at more than $46,000 per coin. The cryptocurrency has been stronger this month, Coindesk reported, after starting out near the $38,000 plateau and rising to $41,500 the first week of the month.
Traders were taking profit from Bitcoin in Asia, Coindesk reported, but the cryptocurrency made a comeback Monday afternoon in Asia to remain above $42,000.
With tax season is in full swing, taxpayers who were part of last year’s boom in cryptocurrency and other digital assets like non-fungible tokens (NFTs) are figuring out what it all means for their taxes.
For investors unfamiliar with tax codes, navigating surprise tax bills or complex crypto tax situations could be a challenge during the filing season, so it is important to be well-prepared. Even if cryptocurrency aims to be an alternative to the U.S. dollar, it does not change Americans' tax obligations.
CLICK HERE TO READ MORE ON FOX BUSINESS
The IRS treats cryptocurrency and other digital assets like property, meaning a taxpayer may owe tax when they exchange or sell assets for a profit. Tax may be due even if a taxpayer exchanges assets for a good or service, such as buying a vehicle with cryptocurrency from e-commerce sites like eBay.