Thomas Lee’s analysis about the end of Bitcoin’s bearish market value has brought a striking news to the crypto-world recently. It has been noticed that Bitcoin [BTC] price has diminished by 51.15% during the first quarter of 2018. The Head of Research at Fundstrat says that the value of Bitcoin would bounce back to up to 200% post April 17th, after the U.S Tax Day.
The cryptocurrency has already shown an unexpected hike in its value 4 days ago by shooting up by $1000. Though the coin is showing slight variations, as the Tax Day is approaching the market value seems to be positive as mentioned by Lee.
Apart from Thomas Lee, there are many analysts who believe that the investors were in a rush to sell their digital assets so as to avoid paying high tax rates.
Chris Burniske, a partner at Placeholder VC says:
“We may look back at this period as a ‘Crypto Tax Crisis of 2018,’ as thanks to tax liabilities we are witnessing a concentrated period of net fiat outflows that the cryptocurrency ecosystem has experienced in itslife,”
We can also see the huge number of opinions and comments regarding tax-related selling on a number of cryptocurrency forums by the investors and proponents who are concerned about their tax liability.
Japan is also one of the famous cryptocurrency markets with a large number of investors. The tax deadline for Japan was March 15th which is considered to be a supporting fact for the current analysis for the rise in BTC’s value.
However, there are a few influencers who still believe that Tax Day is not the main reason behind the sudden decline of BTC.
Eric Ervin, The CEO of Reality Shares, an asset management firm says:
“Taxes were certainly a factor in the performance of crypto, but not the primary one, as evidenced by the timing of the dips.The market selloff began in December, first bottoming in February, and now we are retesting the lows we saw in February”
The CEO of CoinIRA, Trevor Gerszt says that the recent activity on the Bitcoin’s blockchain could be the reason behind the slump as the Bitcoin transaction rates are comparatively low for two months.
Thomas Lee recently compared the Bitcoin value to the 2014-15 tax year in a recent tweet, which gives an optimistic thought about how the value of Bitcoin can rise post-Tax Day.
A Twitterati says:
“This is great Tom – thanks for sharing”
Imran, A bitcoin enthusiast says:
“Haha fair enough but it echos stuff I’ve heard before…”Most people have not bothered to mention cryptocurrencies on their tax returns. In 2015, only 802 people mentioned cryptocurrencies at all on their tax returns”
Source: Read Full Article