The recent news of India’s Bank prohibiting any entities to deal with cryptocurrency related activites did not really came as a shock, because it’s like the third time we’ve heard the news that India is issuing a ban on crypto.
Death Cross
Not much action has been seen on the market even though recent ban news from India, as we are still in a bearish trend where media continues to create FUD by labelling Bitcoin’s fall as the “Death cross” where the short-term movement average crossed below its long-term average on March 30.
Tax Day Incoming
CNBC reports say that Tom Lee, co-founder of Fundstart and one of the early supporters of bitcoin, has predicted a massive liquidation of digital tokens leading to the following tax day of April 17.
Lee notes that, US households owe an estimated $25 bln in capital gains taxes due to their crypto holdings, and cryptocurrency exchanges will owe income taxes, both having to liquidate their holdings in order to pay the US government:
“We believe there is selling pressure by crypto exchanges who are subject to income tax in U.S. jurisdictions. Many exchanges have net income in 2017 [of more than] $1 bln and keep working capital in BTC/ETH, not USD — hence, to meet these tax liabilities, are selling BTC/ETH.”
Tom Lee also suggests that the we may find the bottom after April 17, where all taxes have been paid and we can get back on track to its prediction of which Bitcoin would hit $25,000 by 2018 and $91,000 by March 2020.
It’s up to you to make a right decision of what you should do with your investment, if you believe in Bitcoin and share Tom Lee’s vision, you could wait for a re-bounce, if not you could sell now and maybe buy the dip later.
As you can see the market goes with the trend and we are currently in a bearish market with the media just sinking the dips even lower so you need to always stay educated and on top of everything that happens in the cryptoccurency market.