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Good morning investors! It’s time for crypto investors to rejoice as crypto is on fire as money moves from stocks to digital currencies.

Today we cover:

• No rate cuts?

• Bitcoin crosses 40K, prepares for 100k

• Filing crypto taxes

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📊 Economy and News 

Fed isn’t preparing for a rate cut

Investors see a rate cut in 2024 but Fed Chair Jerome Powell seems to have other plans.

“Having come so far so quickly, the [Fed] is moving forward carefully, as the risks of under- and over-tightening are becoming more balanced,” said Powell.

“It would be premature to conclude with confidence that we have achieved a sufficiently restrictive stance, or to speculate on when policy might ease,” he added.

Central Bank's next meeting is scheduled for December 12-13. Fed is expected to keep rates steady in the meeting.

Global hits:

• Southwest, pilots union near a preliminary labor deal, the last of the major U.S. airlines.

• TikTok’s recent court victories show just how hard it might be to ban the app.

• Amazon taps SpaceX for satellite launch even though Jeff Bezos is right there.

📈 Stocks

S&P 500 4,567.80 (+0.38%)
DJIA 35,950.89 (+1.47%)
NASDAQ 15,947.87 (-0.25%)
BRENT CRUDE 78.27 (-0.77%)
* Prices as of Dec 4th, 12:20 AM UTC

Where to put money in 2024

December is typically a good month for stocks but one needs to be cautious this year since cryptocurrencies appear to be gaining more attention than stocks. Plus, some industries and niches have fallen out of favor.

Tech, for example, might not be a good investment since most major players have gained tremendously this year, leaving little scope for growth in 2024.

We covered some great industries to invest in 2024 and hand picked four stocks. Here’s a snippet from the PRO newsletter:

Furthermore, clean energy stocks are out of vogue, as higher interest rates and lagging efforts to combat climate change dog the sector. Those obstacles might not go away anytime soon.

Top names like Plug Power and NextEra Energy have slid over 60% and 30% this year respectively, but a buying opportunity might be a little far.

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🔐 Crypto

Bitcoin $41,624 (+4.38%)
Ethereum $2,252 (+2.46%)
Total market cap $1.55T (+4.87%)
* Prices as of Dec 4th, 12:20 AM UTC

Bitcoin crosses $40,000, prepares for $100K

Bitcoin hit a new 18 month high when it crossed the $40,000 mark on Monday reaching a high of $41,697, at the time of writing.

Bitcoin has surged by over 145% since the beginning of the year, marking the first instance since May 2022 that it has surpassed the $40,000 mark.

This bull run is following bad news surrounding FTX and Binance. Moreover, the crypto is getting a boost due to the possibility of Bitcoin ETFs.

“Now that $40,000 has been revisited for the first time in almost 19 months, $48,000 and $52,000 look to be the next significant lines in the sand,” said Antoni Trenchev, co-founder of digital asset company Nexo.

SEC met with Grayscale last week to discuss the potential conversion of the Grayscale Bitcoin Trust into an ETF. The SEC had previously blocked this move, but Grayscale challenged that decision in court and won.

What’s next? Executives see this as the start of a new bull run. There is more faith in the currency than ever and many are predicting the coin to go above $100,000 in 2024.

💵 Personal Finance

How To File Your Crypto Taxes

The Form 1040 tax return now inquires about involvement in virtual currency transactions throughout the year.

If you indulge in crypto trade then you may have to fill it out. We must, however, mention that merely buying cryptocurrency alone isn’t a taxable event, it’s the sale that qualifies as a taxable transaction.

So, how do you make filing easier? Here are the steps:

Keep a record of everything

Keep track of all your crypto transactions. Here are a few things that matter:

• When you purchased

• How much you paid

• When you sold

Receipts are of importance and must be kept. In most cases, your exchange will provide a 1099-B reporting your crypto transactions to both the IRS and you, but the form is typically not enough as it does not contain important information such as the original amount you paid for your crypto.

Make life easier by using tools like Cointracker and Koinly. They connect to wallets and exchanges and make it easier to complete tax forms.

Fill out forms

You will have to fill out a variety of forms, including:

1. Form 1099-NEC: If you earn crypto through mining, it is considered taxable income, and you may need to complete this form.

2. Form 1040: This is the standard form used for filing annual income taxes. It includes a line where you report your total gains or losses from crypto.

3. Form 8949: This form documents every purchase or sale of crypto as an investment. It should include details such as the amount of crypto, the date and price of purchase, the date and price of sale, and the gain or loss for each transaction.

4. Schedule SE: You may use this form if you earned crypto income through self-employment.

5. Schedule C: If you received coins from mining, you must disclose whether it was for business or hobby purposes. If operating a crypto mining business, you may owe self-employment taxes if your income exceeds your expenses for the year.

6. Schedule D: This form summarizes your overall capital gains and capital losses from all investments, including crypto.

File your taxes

The next step is to pay taxes. Again, tools like CoinTracker and Koinly can make it easier. You can use other tools and accounting services as well. Here are some of the best options:

We suggest you get in touch with a professional, especially if you do not understand taxes.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.