Bitcoin Traders Relying On Bitcoin Rebound Post Tax Day

by | Apr 17, 2018 | Bitcoin, Cryptocurrency, Cryptocurrency News

Bitcoin | Bitcoin Price | Tax Day | Tom Lee | Spencer Bogart | Bitcoin news

Several Crypto Experts have come together in the wake of the Bitcoin price plunging in quarter one of 2018. Most of these cryptocurrency bulls held the tax season accountable for the dip in the bitcoin price. This is because the tax season led the people to sell off their cryptocurrencies in order to avoid tax formalities.

After starting this year above $14,000, Bitcoin price has dropped more than 40 percent since Jan. 1. Bitcoin was trading near $8,025.55 as of 2:03 p.m. ET Monday following its best week since February.

Spencer Bogart, partner at Blockchain Capital said,

“Tax-selling has been a significant factor in downward crypto prices over the past few weeks. I would expect this downward pressure to abate after tax day,”

Read more: Bitcoin Price is Picking Up Post Tax Season : Venture capitalist

Bitcoin and other cryptocurrencies are seen as property by the Internal Revenue Service, which means that profits from transactions are subject to capital gains tax.

Bitcoin soared up to 1,300 percent last year of its original value, and as a result, U.S. households will owe roughly $25 billion in taxes for digital currency holdings, according to Tom Lee, head of research at Fundstrat Global Advisors.

Which means that Bitcoin will hit $20,000 by the middle of the year and almost $25,000 by the end of 2018.

Pantera Capital Founder and CEO Dan Morehead said in an investor letter published last week that bitcoin is “highly likely to have exceeded $20,000 within a year.”

Last week, Bitcoin spiked from a low of $6,786 to above $8,000, first time this year.

Read more: Bitcoin Price Will Touch $20,000 Again In June 2018, Says Fundstrat’s Tom Lee

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