CryptoWatch: As tax deadline approaches, D-Day looms for some bitcoin bulls

Coming off their best week since early February, digital currencies are slightly lower Monday, with many pundits eyeing the U.S. tax deadlines that looms a day away.

The No.1 digital currency hovered around $8,000, after touching a three-week high earlier in the day, trading to $8,407.72. A single bitcoin BTCUSD, -4.17% was last valued at $8,087.14, down 3.2% on the day.

Tax day looms

After surging as much as 20% last week, many pundits now believe a medium-term low is in place, blaming the recent selloff on tax related selling—digital currency owners who made money in 2017 are having to convert crypto into fiat money to pay their taxes.

Tom Lee, who has a year-end price target of $25,000 for bitcoin, was one of the first to note this possible cause for bitcoins slide. While he remains optimistic, he notes it will need more than just tax selling relief for cryptocurrencies to push on.

“There are still substantial regulatory uncertainties that are curbing institutional appetite for crypto. Until greater clarity is received from the SEC, in particular, many potential investors are sidelined,” said Lee, managing partner at Fundstrat Global Advisors, in a note to clients Friday.

Read: Bitcoin will rise to $250,000 by 2022, says Tim Draper

What are other markets doing?

After significant gains last week, altcoins, coins other than bitcoin, are slightly lower Monday. Ether is at $510.25, down 3.9%, Bitcoin Cash is off 2.1% at $763.28, Litecoin has lost 3.5%, last trading at $127.23 and Ripple, which added more than 30% last week, is at 65 cents, down 4.1%.

Futures markets are slightly lower to begin the week. The Cboe’s April contract XBTJ8, -1.73% is down 0.4% at $8,060 and the CME Group Inc, April contract BTCJ8, -1.91% is off 0.8% at $8,035.

CryptoWatch: Check bitcoin and other cyptocurrency prices, performance and market capitalization—all on one dashboard

Filed in: Top News Tags: 

You might like:

Futures Movers: Oil prices spurred higher by Trump’s Iran tweet Futures Movers: Oil prices spurred higher by Trump’s Iran tweet
This 18-year-old’s hacking side hustle has earned him $100,000 — and it’s legal This 18-year-old’s hacking side hustle has earned him $100,000 — and it’s legal
Metals Stocks: Gold retreats as dollar climbs to start the week Metals Stocks: Gold retreats as dollar climbs to start the week
Earnings Outlook: Earnings preview: AT&T, a modern media company in the making Earnings Outlook: Earnings preview: AT&T, a modern media company in the making
Economic Report: Existing-home sales slide for third-straight month in June, touch 5-month low as housing sputters Economic Report: Existing-home sales slide for third-straight month in June, touch 5-month low as housing sputters
Tax Guy: How your loved ones can cash in on the 0% tax rate on long-term capital gains Tax Guy: How your loved ones can cash in on the 0% tax rate on long-term capital gains
Economic Report: Chicago Fed national economic indicator helped by factory-sector snapback Economic Report: Chicago Fed national economic indicator helped by factory-sector snapback
Earnings Outlook: Amazon earnings: Prime Day isn’t the only thing giving business a boost Earnings Outlook: Amazon earnings: Prime Day isn’t the only thing giving business a boost

Leave a Reply

Submit Comment
© 2018 Stock Investors News. All rights reserved. XHTML / CSS Valid.