RE: Summer is over, crypto is back and so am I 📉☃️But crypto-winter is still here
I think this a good article, but when speaking of sellers and buyers, why are the sellers not selling at this price? In my country I am allowed to move from alts to btc with no tax implications. But I pay 30 percent tax on a move to fiat, and it is being argued that stable coins are fiat as they are supposed to be backed by fiat. So for me to sell the price needs to drop 30 percent so I can buy more back. Yes I can see the price of bitcoin going below 4500 but I can also see the bottom being at 5000 or 5500. In this case their is a huge risk in selling my btc to fiat. Every country has different taxation laws, btc dominance is growing which kind of tells me many holders of crypto are in a similar situation to me. The bottom is a process. When looking at total market cap vs bitcoin market cap, I do wonder if we have not bottomed. I think for the bitcoin price to drop into the 4000 range the total market cap may need to drop to less than 100 Billion USD. Thousands of bitcoins were being bought by a whale at the 7000 dollar range a few weeks ago and a big short order came in shortly after that (probably the same whale protecting his or her investment). In my country must pay 30 percent tax on gains if I have traded the crypto asset but am not allowed to show losses as of yet on crypto assets. I took some profit in January but now the tax implications are such that it makes no sense for me to sell. How many longer term holders are in the same situation? Thus I choose to accumulate at the moment.
I think the main reason the sellers are not selling is because everybody who wanted to sell at this price would have done so a long time ago by now.
And yes there are certainly a lot of other reasons too like the tax issue you mentioned. I myself have never sold anything partly also because the taxes make it confusing and complex
Especially when you have millions/billions worth of crypto this is a bigger problem. There is no way to cash out all at once without giving away half of it to the taxes and such. This is why I think Monero has for a long time been a big thing amongst whales in which they can put their profits, and why it is certainly undervalued for this reason by the wider crypto community. But the value of it is only clear once you run into these problems
I think we have FINALLY come close to running out of weak hands willing to sell at a bad time. At least I hope so.