Crypto Bull Tom Lee Predicts a Massive Bitcoin Sell-Off Before US Tax Day

Crypto Bull Tom Lee Predicts a Massive Bitcoin Sell-Off Before US Tax Day

This year tax deadline for all Americans is set on April 17, and there is high feasibility that before this day there will occur all-out vending of cyber-assets into the US public currency – dollars.

Tom Lee, the known bull of Wall Street and a keen supporter of bitcoin, says American households very probably are due $25 billion in capital gains taxes for their cyber-assets.

Time For Taxes. Are Bitcoiners Ready?

On April 5, Lee, who is also the chief of research at Fundstrat Global Advisors, said:

"This is a massive outflow from crypto to USD, and historical estimates are each $1 of USD outflow is $20-$25 impacts on crypto market value."

As the only significant Wall Street expert, who “pro forma” talks about BTC and its ilks, he added that there is a vending tension by cyber money trading venues which are subject to income tax, as per the US law.

In particular, lots of crypto bourses can boast with the 2017 net income of over $1 billion, “and keep working capital” in BTC or ETH, but not USD. Therefore, in order to fit these tax requirements, the crypto bourses are also vending bitcoin and its "little brother" ether.

This Will Not Add Anything To Bitcoin’s Karma

Since mid-December, when bitcoin reached its all-time record of $20,000 and then in a few days dropped below $12,000, the “king” of all cryptos has not managed to recover. Instead, it kept fluctuating between the high of $15,000 and the low of $6,000, which it reached at the beginning of this year February.

In total, the plummeting of BTC was 50% in the first three months of 2018. Nevertheless, bitcoin’s price is still 450% higher than over the past year.

As usual, lots of crypto-skeptics started talking about the bubble burst, and there have started emerging theories that the total market cap of bitcoin will go below $77 billion by 2019 from $118 billion as of writing. However, most commonly this happened due to regulatory uncertainty in many countries.

And the tax-related sell-off, apparently, would not make bitcoin stronger. On the contrary, it would add to its difficult start of 2018. Concerning this matter, Fundstrat’s Lee said that the regulatory jeopardies remain principle. At the same time, bitcoin misery index indicates that there are negative tendencies.

How Will It Go?

Because, as we have already said, bitcoin reached its all-time record back in December 2017, lots of US investors may still owe capital gains taxes on cryptos. And it doesn’t matter, that after that BTC dropped in price, by the way. So, naturally, people will start selling bitcoin and its ilks to protect themselves from high taxes.

It is noteworthy that the US Internal Revenue Service considers, as well as, acts towards cyber-assets as properties. Thus, all transactions, carried out with these coins, need to be taxed.

Although bitcoin will not be stable after a cumbersome sell-off, Lee believes that it will get back on its feet with time. Moreover, Lee assumes that the value of BTC will nearly triple by the end of 2018.

Bitcoin’s Volatility? In 2017 BTC Was More Stable Than In Its Early Days
Despite some 30% crashes in 2017, bitcoin managed to increase by total 1,400% last year, conquering the world’s financial stage. Banks are becoming...
Stablecoin - Everything You Need to Know
What Is A Stablecoin? You must have heard of cryptocurrency which has been the recent talk of the town. Well, stablecoins are a form of...
Gold Pulls Bitcoin Investors From BTC, Says Van Eck Associates CEO
In 2017-2018 bitcoin bit gold as bait for investors. However, the situation is expected to change in 2019 as investors already hope more for the gold...
Crypto-Supporter Milne Said Bitcoin’s Only Ledger to Last 100 Years
As bitcoin continues trading approximately Twitter thread entrepreneur Alistair Milne forecasted that the upcoming cyber money bull will decide which...
Increased Supply of Altcoins Will Depress Bitcoin, Says St. Louis Fed Report
As it is known, crypto-supporters (bitcoin bulls) widely believe that the increase in the capped supply of all cyber-coins will boost bitcoin’s value...
BTC Market Cap Will Surpass $7 Trillion Gold Cap, Say Winklevoss
Recently, Tyler and Cameron Winklevoss, world-known entrepreneurs and early supporters of cryptos, have taken part in Reddit’s traded at $4,061 and...
Crypto-Community Celebrates Bitcoin’s 10th Birthday
This year’s January 3 marks a decade since the first bitcoin block was generated by Satoshi Nakamoto. Back then, in 2009, this person (or group of...
Best Bitcoin Memes in 2018: ‘Hodling’ and Crying
2018 has not been an easy year for bitcoin, not at all. Whereas it left 2017 at the price of $10,000, it started the new year in a pretty bullish...
Bitcoin Hits $4,190 For The First Time Since Early December
For the first time in a fortnight, bitcoin has managed to creep above the $4,000-margin. As of writing, the king of all cryptos is traded at $4,031...
Bitcoin Surpasses $3,500 on the Anniversary of the $19,000 Record
Today, December 17 marks an anniversary since bitcoin hit the $19,000 high for the first time ever. Moreover, this day marks a petty recovery of the...