Most investors of Bitcoin or to Bitcoin have been really asking Why Bitcoin Price Is Dropping with Over 40% following the Selling pressure in cryptocurrencies could ease after tax day. However, see what you need to know here
Why Bitcoin Price Is Dropping With Over 40% Lost
The mid-April income-tax filing deadline is contributing to crypto’s falling prices as investors who won big betting on the digital tokens sell some of their remaining holdings to pay $25 billion in capital-gains levies, Tom Lee, the head of research at Fundstrat Global Advisors, wrote in a note Thursday.
Why Bitcoin Price Is Dropping With Over 40% Lost past month, including a 1.2 percent decline on Thursday to $6,750 as of the New York close.
“This is a massive outflow from crypto to dollars,” Lee wrote. “Historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.”
Lee says that $25 billion prediction — derived from his estimate that U.S. households had $92 billion in taxable gains from cryptocurrencies in 2017 — would represent 20 percent of capital-gains tax receipts to the U.S. Treasury. He estimates total capital gains receipts will hit a record $168 billion for tax-year 2017.
“We still like Bitcoin and large-caps,” he said, adding that “while we believe the bear market for alt coins is largely over, we do not see an upside for alts until mid-August.”
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