This week has been a mixed bag for Bitcoin and the rest of the crypto market. At the start of the week the digital asset struggled to overcome resistance at $8,200 and the majority of traders were expecting a revisit to prices below $7,800. Some traders even cautioned that a drop to $7,300 could open the doors to a sharp correction to below $6,000.

By Wednesday Bitcoin had successfully managed to gain above $8,300 and traders shifted their attention to the $8,500 resistance. Unexpectedly, on Thursday, Bitcoin smashed through the $8,500 resistance shelf and in the overnight trading hours on October 11, Bitcoin price rallied all the way to $8,850.

Once $8,850 was reached, Bitcoin slammed into resistance that was either a stop hunt or a profit taking level and the price dropped as low as $8,284 before recovering to the $8,300 range. Over the weekend, traders will be looking for Bitcoin to again rise above the $8,300, $8,500 and $8,800 resistance.

Price action aside, there are a number of important developments taking place in the cryptocurrency sector. Let’s review some of them below:

Report finds 6.7% of all Bitcoin are held by exchange wallets

To date, exchanges own 6.7% of Bitcoin’s circulating supply and this is a trend that has been growing since 2017. Data from TokenAnalyst support this data and this means exchanges hold about $9.8 billion in Bitcoin. According to the data analytics provider, each major Bitcoin price crash has led to exchanges increasing their Bitcoin holdings.

Currently Huobi, Binance and Bitfinex lead in Bitcoin ownership. Data from Gemini and Coinbase was unavailable. Many crypto investors will wonder whether or not large centralized entities owning a growing percentage of Bitcoin is a good thing.

Exchanges with the appropriate security processes can help facilitate crypto adoption but at the same time, there is the possibility that exchanges can gain a majority footing and function as traditional banks if they continue to grow their Bitcoin holdings.

Facebook’s Calibra project sued by mobile banking app for similar logos

Current, the company behind a mobile banking app by the same name, is suing Facebook’s Calibra project over the alleged infringement of the company’s logo. The complaint was filed in the U.S. District Court for the Southern District of New York and Current claims that the Calibra logo is too similar to the logo they have used since August 2016.

Current’s app-based banking platform is also functionally similar to Calibra and the logo for both companies was created by a Character, a San Francisco-based branding firm. Howard Shire, a partner at the Intellectual Property Department of Pepper Hamilton LLP, said, “It is suspicious that the defendant’s logo came out of the same firm that created the plaintiff’s logo.”

Anthony Pompliano Believes Bitcoin Is A Real Solution To Hong Kong Crisis

Morgan Creek Digital co-founder Anthony Pompliano believes that Bitcoin is a genuine solution to Hong Kong residents who are worried about monetary sovereignty during troubled times. Hong Kong residents have been protesting a bill for a few months now, and it has started to affect businesses and confidence in the country.

Pompliano tweeted that Bitcoin’s non-seizability is very attractive to over 1 Billion people in India and Hong Kong. His tweet matches with the recent trend, where there was a huge spike in the number of Bitcoin trades on Localbitcoins. Hong Kong residents traded 12.3 million HKD ($1.57 million) worth of Bitcoin on the peer-to-peer exchange.

Internal Revenue Service says Crypto Hard Forks Create a Taxable Event

Today the Internal Revenue Service (IRS) released an updated FAQ and guidelines on how U.S. citizens are taxed on a variety of crypto transactions. A surprising part of the update pertains to cryptocurrency hard forks and investors were shocked to learn that a hard fork will be classified as a taxable event.

According to the IRS, a taxable event occurs when the owner “receives” tokens that they can “transfer, sell, exchange, or otherwise dispose of it.” The IRS also instructed crypto traders to keep more detailed records of their transactions.

The updated guidelines also advised that a taxable gain only takes place after one has liquidated the digital asset for cash. Investors will be relieved to know that shifting coins between wallets does not constitute a taxable event.