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,”
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.
CRYPTO: Where was #BTC 1M prior to ~$20,000 top? $5,900. In other words, BTC this year rollbacked prices similar to what happened in 2014/15. Could be same bottom as the 2014/15 bottom. Also, selling related to capital gains taxes in US should be lifting as tax day is 4/17. pic.twitter.com/AyOgKPoR2x
— Thomas Lee (@fundstrat) “https://twitter.com/fundstrat/status/985529509628776448?ref_src=twsrc%5Etfw”>April 15, 2018
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.
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