As bitcoin is property every transaction is a reportable transaction. The moment you moved the bitcoin to Person B you had to report the income. It wouldn't have mattered what it was for, even if you moved it just to move it to another exchange or ccy to ccy. So you had a $1,000 gain on that move as the exchange rate there was a value of $11k that you were receiving.
Additionally, Now if person B then gifted you $11,000 then you have possible gift tax reporting if the amount went over $14,000 in total.
Remember the IRS considers bitcoin property, so regardless of what you did with it, there is a reporting at the exchange rate or for the value received at the time of the move.
https://www.irs.gov/pub/irs-pdf/p544.pdf and https://www.irs.gov/pub/irs-pdf/i8949.pdf are the IRS
rules for property and reporting. Personal property net losses are not
deductible but investment property is.... follow the IRS guidelines for
property.
IRS guidance
on cryptocurrency as property:
https://www.irs.gov/newsroom/irs-virtual-currency-guidance
https://www.irs.gov/pub/irs-drop/n-14-21.pdf
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