Today marks the US tax deadline, also known as Tax Day.
As this date has been looming the past few months, many experts have put the low performance from the big cryptocurrencies like Bitcoin down to the fact people have been selling off their assets in order to square up their accounts ready for tax returns.
Head of Research at Fundstrat Global Advisors, Tom Lee has said that with the deadline here, we should see all selling of crypto-assets for capital gains tax, halt, giving the markets a chance to re-cooperate and settle, before the next expected bull run.
Which, according to Lee, should be soon.
In an interview with CNBC, Lee points out that what we have seen over the past few months, reflects the market movements seen in the months before December 2017, when Bitcoin almost hit $20,000.
CRYPTO: Where was #BTC 1M prior to ~$20,000 top? $5,900. In other words, BTC this year rollbacked prices similar to what happened in 2014/15. Could be same bottom as the 2014/15 bottom. Also, selling related to capital gains taxes in US should be lifting as tax day is 4/17. pic.twitter.com/AyOgKPoR2x
— Thomas Lee (@fundstrat) April 15, 2018
With this in mind, he expects Bitcoin specifically to hit $20,000 within the next few months, with the possibility that it will make further gains and reach as high at $25,000 by the end of 2018. Tim Draper, last week discussed that Bitcoin could even reach $250,000 by 2022… imagine that.
Oops! I predicted $250k in 2022. My tweet last night was missing a zero. $250k is the number!
— Tim Draper (@TimDraper) April 13, 2018
You can see the report and interview from CNBC here- https://www.cnbc.com/2018/04/16/bitcoin-traders-are-banking-on-a-big-rebound-once-tax-day-passes.html
Obviously, speculation is rife at the moment. Tax Day will have an impact on market values and rightly, people will have been selling off assets over the past few months in order to balance out their accounts, that’s the nature of tax. So, as a result of the passing and completion of Tax Day, we will see some changes within the markets. That’s a given.
What will happen however, is still a bit of a mystery. We have said time and time again, the experts are waiting for Bitcoin to hit $250,000, and they state that a bull run is imminent. If this is the case then yes, Bitcoin will shoot up, as everything will, but what if it doesn’t?
Our advice is this – we are entering very choppy waters now, its exciting and it is going to lead to some great open debate. If you are an investor or want to invest, do plenty of research, when you think you have researched enough, do some more. Don’t do anything until you are 110% sure you know what you are doing. Experts say things that might come with great authority, but they might not always be right, it’s a volatile world and sometimes, it’s impossible to predict.
Lets see what post-Tax Day offers and let’s see what changes take place at the end of the week in the wake of all this!