In this week’s recap, U.S. stocks rebounded on Thursday after U.S. jobless claims data indicated that the labor market continued to recover, helping major indices break a 3-day losing streak. Had been under pressure after concerns that rising inflation could prompt central bankers to pare back easy-money policies.
Bitcoin, which shook markets earlier in the week with a 28% plunge, was stable for a 2nd day early Friday between the $40K to $41K range. The cryptocurrency market stabilized after a week of pain triggered by a Chinese regulatory move & forced selling. Other coins along w/Bitcoin slumped too, such as Ether’s -17% weekly plunge. Thursday, it emerged the U.S. requires crypto transactions of $10K or more to be reported to tax authorities. U.S Treasury: “Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion”.
U.S. Treasury Department report said the tax gap is now estimated to be about $7T over the next decade. Around 80% of the gap is from underreported income, largely from income sources like proprietorships & partnerships among the wealthy. President Biden wants to increase tax compliance from the rich, (+$400K a year) to raise revenue for his American Families Plan (expanded education, child care & paid leave).
Tesla shares down, influenced by Burry’s statements; Bitcoin fell -13% after new bans on Chinese financial companies; DarkSide received $ 90M in bitcoin for ransom payments; the population of bald eagles in the US has quadrupled its number; Gates resigned his seat on Microsoft’s board due to an affair with an employee; AMC shares rose again with the reopening of theaters in the US; Lamborghini will transition to hybrid and electric cars in this decade.