After the end of the tax season, the Bitcoin price has risen by 13.6%
On Saturday, after some break, the Bitcoin price again reached the 9000 U.S. dollars mark. This cryptocurrency newly acquired positive impulse is not a surprise for Tom Lee, the major analyst of Fundstar Global Advisors, who believes that the digital asset market has come under pressure due to the US tax season, but now when it has come to an end, the rise will resume again.
As of 12 April, when the Bitcoin price fell below the $ 6,500- $ 7,000 range, its exchange rate is steadily rising. The currency for a short time exceeded the mark of $ 9,000, while its market capitalization increased by almost 40% compared with the minima of April.
Tom Lee already long ago claimed that the digital asset market was negatively affected by the U.S. tax season events, which led to the massive withdrawal of capital from the cryptocurrencies, as the investors needed the cash to pay taxes on profits earned last year as a result of the rapid growth of the Bitcoin price.
On 17 April, the tax season ended, and since then, there has been a general improvement in the market for cryptocurrencies. We believe that the Bitcoin's “winter” is over with the cash flow from cryptocurrencies into classic fiat currencies for tax purposes.”,– Tom Lee comments.
The U.S. profits from investments in cryptocurrencies are subject to a profit tax, as the Federal Tax Service (IRS) treats them as a property. Due to the last year's aggressive rise of 1300%, the American investors owned the sum of $ 25 billion to the country. According to Lee's estimates, the U.S. household income from the capital gains in 2017 was $ 590 billion at the tax rate of 30%, and additionally $ 92 billion in profit are taxed at 27%. Similarly, Lee recommends the investors to closely follow the indicators of CoinsharesCrypto ETF(exchange-traded fund), which are considered by the expert as the leading indicator of Bitcoin's behaviour, compared to the famous groundhog Phil, who predicted the end of winter.
We believe that the major institutional investors all over the world tend to rate this ETF as a way of quick access to Bitcoin. When the shares are growing, “big players” buy Bitcoin, "- he explains.
According to Lee's forecasts, by mid-year, this exchange rate of cryptocurrencies will reach $ 20000, while by the end of 2018 it will go up to $ 25000. But in early 2020, according to the expert's estimate, the price of one Bitcoin will be $ 91,000.