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‘Tax Day’ to Spark New Bullish Momentum For Bitcoin
‘Tax Day’ in the U.S. is on April 17, and a number of analysts are bullish on Bitcoin as the much-anticipated tax deadline should trigger the next upward momentum.
The cryptocurrency market has been hungover ever since Bitcoin entered the futures trading market in December 2017. The downward path in 2018 removed the majority of its market cap, from about $826 billion to $330 billion today. Bitcoin had a similar fate as its market cap plunged from $324 billion to $138 billion, and its price shed $12,000, from $20,000 to about $8,000. Today, however, is ‘Tax Day’ in the United States.
The IRS says cryptocurrencies constitute property, which is subject to capital gains tax. Institutional investors argue that ‘Tax Day’ is the trigger of the new bullish run.
“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,”
Lee expects Bitcoin to reach $20,000 again by mid-year and $25,000 by the end of 2018. By early 2020, the cryptocurrency is predicted to be worth $91,000.
An investor letter published by Dan Morehead, Founder and CEO of Pantera Capital, said that bitcoin is “highly likely to have exceeded $20,000 within a year.”
Tim Draper, an early backer of Tesla, Skype, and SpaceX, announced that he predicts that Bitcoin price will reach $250,000 by 2022. Draper said he expects that, in five years, whoever tries to pay in fiat currency will be laughed at.
