Crypto

Tom Lee reveals that the selling pressure for cryptocurrencies will reduce by mid April

The Head of Research at Fundstrat Global Advisors, Tom Lee has made a claim that the selling pressure in the cryptocurrency world may stop dwindling hysterically somewhere by mid-April.

According to several reports, it has been noticed that the upcoming income tax filing date is the main factor due to which cryptocurrency prices have been falling. Traditionally, Each year the 15th of April is said to be the ‘tax day’ in the United States, however, given the forthcoming holidays in the U.S., this year the ‘tax day’ will be on the 17th of April.

Tom Lee believes that cryptocurrency price has been falling because investors are attempting to sell off their digital assets in a bid to avoid paying taxes applicable on cryptocurrencies. A mammoth $25 billion worth US taxes is owed by Bitcoin investors. It is rumoured that even the Internal Revenue Service has plans of accumulating taxes on the cryptocurrency gains.

As per the statement given by Tom Lee, it reads :

“The $25 billion worth tax levied would be depicted 20{500c8cf8dace8cda8a572d0723319db30d7ae9c572e69fb9e7726ed8fdae7ee9} of capital gain tax invoices to regulators, this is one of the major reasons why the IRS cares so much about collecting crypto taxes.”

Furthermore, the head of research at Fundstrat Global Advisors also went on to say that the total receipts for capital gains are well on the path of reaching a record $168 billion (for income tax year 2017).

Lee  then stated :

“Selling pressure for bitcoin ought to be lightened after April 15th.”

Tom Lee also further stated:

“ We fully back the Bitcoin and large-caps, also we believe the bear market for altcoins is largely over, we do not see the upside for it until mid-August.”

According to several researchers, it has been noted that rather than making use of dollars for carrying out day to day operations, people have now started using the digital currencies given the recent scenario where the prices of Bitcoin and Ethereum have crashed.

Also, some investors purchased these coins in an attempt to sell their alt coins, however, they got rid of it because of the tax season.

Bitcoin has fallen by almost 65{500c8cf8dace8cda8a572d0723319db30d7ae9c572e69fb9e7726ed8fdae7ee9} since December.However, several pundits have mentioned that the cryptocurrency fans consider this period as the ideal time for investing in Bitcoin.

About the author

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John Mathhew

John Mathhew – The content head at Bittflex, he has done her PHD in English literature and masters in finance as well, he was introduced to the blockchain and crypto industry during her college time spending hours searching over the internet and was extremely fascinated and then took on the pace and started writing her own finance and crypto blogs. He has all the information on the subject we required and her writing skills are just fantastic. He really expresses herself beautifully through each and every article he delivers.

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