Just gotta get past April 19th...
My theory is that much of this selling of cryptocurrencies is related to taxes.
The US is the largest or second largest bitcoin/crypto market in terms of dollars.
With all the new regulations and crackdowns going on, people are forced to pay their taxes, some of them for the first time.
This might be going back all the way to 2012 they they have been avoiding taxes.
With prices so much higher now, it makes sense for them to lock in some dollar gains so that they can settle any tax debts that might be lingering.
My theory is that as we get closer and closer to April 19th, much of the selling goes away.
The problem is that is still a month from now and might mean we have lower to go yet.
nah there is no sense to sell off, selling off means you gotta pay even more taxes and on crypto held less then a year it means you paying 3x4x MORE
Doesn't matter what makes sense, what matters is what is happening. People that had been sitting in bitcoin gains trading back to 2012 had their info sent from coinbase to the IRS with the recommendation from Coinbase that they consult a tax attorney asap.
I think the cryptography itself and the ability to scale is being overlooked. If you put a line through that graph people got agead of themselves this winter and the scaling wasnt there. Soon we will have all the scaling and we will see the value reflect that. Buying into ico’s for a quick buck was the problem, all the ico’s i invested into were long term and i went i to each ine expecting to wait atleast a year for returns. Stuff that has development teams and roadmaps. Cant expect a bubble like that to hold if the technology cant keep up. Value is value. Were at the point now that we should be, but i do agree after april all these big ico’s will either be flopping on their roadmaps or putting out groundbreaking stuff. Either way this is the calm before the storm.
I think you are right... people need to sell some btc to pay for last years realized gains... people quickly forget that btc ran from $1k to $20k during the year so anyone who sold any last year likely are trying to raise money to pay for the taxes right now.
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