Bitcoin Heads For Best Week In 4 Months As Tax Overhang Lifts

Bitcoin is extending gains from yesterday's high volume surge, back above $8,000 and up over 25% on the week - the best since early Dec 2017 - as the tax-driven selling overhang lifts ahead of Monday...

As a reminder, CoinTelegraph reported that Fundstrat’s Tom Lee predicted a “massive outflow” of cryptocurrency to fiat in the lead up to tax day in the USCNBC reports.

In a report last week, Lee noted that, since US households owe an estimated $25 bln in capital gains taxes due to their crypto holdings, and crypto exchanges also will owe income taxes, both households and exchanges will be selling their crypto 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 [Bitcoin]/[Ethereum], not USD — hence, to meet these tax liabilities, are selling BTC/ETH.”

According to Lee, “historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.”

image courtesy of CoinTelegraph

And it seems that pressure is now lifting.

Bitcoin is back above $8,000, back above its 200DMA, and holding yesterday's surge gains...

 

And as goes Bitcoin, so goes the rest of the crypto space with Ethereum and Ripple up 40% on the week..

And the entire crypto space is a field of green...

Lifting the crypto market cap back above $300 billion...

We also note that some have suggest that the overall price spike could be attributed to a report released yesterday that crypto is generally permissible under Shariah law,

Comments

gdpetti Bill of Rights Fri, 04/13/2018 - 10:27 Permalink

Well, the PMs are always the last card played, so their impending rise is not something to look forward to in terms of any market stability. As for the infamous BTC, wasn't it obvious it was going to rise after the usual WallStreet crew bought it? The problem is finding a buyer when they sell... companies can continue selling their CEO/board members stock options etc to themselves, but retail investors will be needed for the crypto space... can these guys find more of them? or get the old pump working again in the PR space long enough to dump again? Isn't that the situation?

In reply to by Bill of Rights

PT ThanksChump Fri, 04/13/2018 - 08:58 Permalink

You've just missed the real game.  Deep State are well positioned to play Bitcoin Yo-Yo.

Want to crash prices?  Threaten crypto taxes.
Want prices to rebound?  Announce no crypto taxes.

I wonder how many times they can do this and still make good money.  Buy / Sell The Fucking Crypto Tax / No Tax Announcement.  B/STFCT/NTA.  (I don't expect that abbreviation to go anywhere.)

In reply to by ThanksChump

Exponere Mendaces lester1 Fri, 04/13/2018 - 12:32 Permalink

The only thing hurting is your P/L.

Bitcoin is doing what it always does - making old ignorant fossils like yourself look like the complete sausage-snorkling dumbshits.

And it isn't over, by a long shot. Just wait until the next halving event - you're going to have to pick up your dentures from the floor after that gets factored into price.

Stick around grandpa, plenty of time for you to chew on your foot.

In reply to by lester1

Endgame Napoleon house biscuit Fri, 04/13/2018 - 07:28 Permalink

Pay your BitCoin taxes, b*****z. The USA needs tax revenue to keep up the households headed by part-time-working, single-earner moms and noncitizen parents in single-earner households! Look at it this way: On top of free housing and EBT food, they get a $6,431 refundable EITC child tax credit to reward sex and reproduction, and you get to pay taxes.

In reply to by house biscuit

vasallo7g house biscuit Fri, 04/13/2018 - 11:54 Permalink

There are two major factions in the world right now. One is calling for a global currency reset and the other is desperately trying to hold up the debt system to maintain their current power structure. The latter would rather start WW3 than give up their power, hence the constant posturing of war with Russia and China.

In reply to by house biscuit

wmbz Fri, 04/13/2018 - 07:15 Permalink

In this wacked out upside down world that we live in, I would not be surprised at all, to see bitcoin at $100,000 by the end of next week.

marysimmons wmbz Fri, 04/13/2018 - 07:58 Permalink

Mother of all short squeezes, followed by crypto hedge funds/asian whales piling in, followed by massive FOMO, followed by leveraged shorts getting even more rekt, followed by massive exhaustion blow off top?  That's how you get BTC touching $50K by mid summer.

https://pbs.twimg.com/media/DZlOxpFUMAA5Z1k.jpg

Where do you put your money? (hilarious) - https://www.youtube.com/watch?v=MZ_WlR1OuBA - 2:20 min

In reply to by wmbz

lester1 ZENDOG Fri, 04/13/2018 - 07:28 Permalink

Bitcoin, Tesla, Snapchat, Blue Apron, Deutsche Bank, etc are all Frankenstein creations kept alive by central bank easy money policies which distort the free market, business cycles, and asset prices. 

 

In a normal economy, all of the things I listed above would have crashed and burned a long time ago!

 

 

 

​​​​​

In reply to by ZENDOG

lester1 Endgame Napoleon Fri, 04/13/2018 - 07:37 Permalink

I don't bash people who made a fortune on the Bitcoin ponzi scheme. If you already sold and cashed out, you're a genius and have my respect!

 

I bash those cultist/delusional "HODL'ers" who bought within the last 6 months thinking Bitcoin is going to $100k. Its pure greed and ignorance. I seriously hope to see HODL'ers wiped out so they learn their lesson.

In reply to by Endgame Napoleon

bobert727 Fri, 04/13/2018 - 07:32 Permalink

"the tax-driven selling overhang lifts ahead of Monday"

 

It's actually Tuesday April 17th due to April 16 being Emancipation Day, marking the abolition of slavery in the District of Columbia. It's a legal holiday in Washington, D.C.

_SILENCER Fri, 04/13/2018 - 10:00 Permalink

Our masters want control of the emerging cryptosphere.

They don't want you to accumulate any wealth in which they have no part or say. You should be in pursuit of paychecks and go into debt.

The plan is to scare you out of crypto so they can own it, and once again, you have to come to them hat in hand.

Grab that shit with both fists and keep your metals close.

Paper burns.