The American Tax Season Is Almost Done - This Could Be Extremely Bullish!
At first I was skeptical when people blamed the recent bear market on the American tax season, because I read many articles that almost nobody actually pays their taxes and Bitcoin is a global currency, so the USA is hosting only a part of the traders. Then I found THIS article where is estimated that American crypto traders ‘owe’ the IRS 25 billion dollars! This immediately changed my mind.
If only one percent is selling Bitcoin to pay their taxes, 250 million have to be cashed out in this period. This creates a sell pressure that is more than half of what the Mt. Gox guy caused. These two factors together could certainly cause the recent crash.
The possible direct and indirect results of the end of the tax season
In 3 days the tax season is over and people will not sell for this reason anymore. The direct result is that less Bitcoin will be sold while the demand remains even. This will result a positive effect on the price.
There is also an indirect effect that could even be a bigger case for a bull market. Institutional investors mention this reason for the selloff all the time and are waiting on the side lines to enter the market. Around the 17th could be an entry point for a huge wave of Wallstreet money to flow into the tiny market cap of Bitcoin. This could literally skyrocket the price.
Tom Lee is very respected among institutional investors, so they could decide their entry point on his analyses
Don’t underestimate the institutional money
When institutional money start to flow in and causes the price to rise others will follow because they expect the bottom to be in. Even when you calculate the inflow of money to the market cap as 1:1 it is extremely bullish, but short term the effect will be way bigger because an inflow of new money of millions can raise the market cap with billions. The next bull run could be the biggest in the history of Bitcoin, while the previous ones were already overwhelming!
HODL and ACCUMULATE!
Disclaimer
This is no financial advice, just my view on the market.
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Nice post brooo
Very interesting news @michiel sanagat beruan guana for others thank you for sharing
This comment has received a 0.28 % upvote from @speedvoter thanks to: @ssatria743.
Thanks sir @michiel for sharing the updates. Cryptos again prepare for skyrocking.
As like the past 3 months, I will keep hodling on!
It appears that you were right about the tax day. Just like you I was sceptic!
But I don’t mind what the actual reason is as long as it rises!
Success in life is never guaranteed. Unfortunately, however, taxes almost always are. Coin miners and traders were riding high last year, and many people made a small fortune in cryptocurrencies in a matter of months. Now that tax season is here, however, it’s time to pay the piper.
Evading taxes is tempting, sure. Nobody likes paying their taxes. But failing to do so can land you in serious hot water with the IRS. This is especially true for cryptocurrency investors, who have already caught the attention of the tax agency. Last year, the IRS sued Coinbase seeking information on all active users on the exchange in an effort to collect back taxes.
it will have a huge positive effect!
thanks for giving quality updates about crypto
https://www.youtube.com/paulbegley34
hope the next bull run will be historic
good days ahead
Interesting article, subscribed, I hope for reciprocity!
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