{"id":254977,"date":"2018-04-06T07:31:18","date_gmt":"2018-04-06T05:31:18","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=254977"},"modified":"2018-04-06T07:31:44","modified_gmt":"2018-04-06T05:31:44","slug":"why-bitcoins-price-has-dropped-by-over-40","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cryptocurrency\/254977-why-bitcoins-price-has-dropped-by-over-40.html","title":{"rendered":"Why Bitcoin’s price has dropped by over 40%"},"content":{"rendered":"

Selling pressure in cryptocurrencies could ease after tax day.<\/p>\n

The mid-April income-tax filing deadline is contributing to crypto\u2019s falling prices as investors who won big betting on the digital tokens sell some of their remaining holdings to pay $25 billion in capital-gains levies, Tom Lee, the head of research at Fundstrat Global Advisors, wrote in a note Thursday.<\/p>\n

Bitcoin dropped more than 40 percent over the past month, including a 1.2 percent decline on Thursday to $6,750 as of the New York close.<\/p>\n

\u201cThis is a massive outflow from crypto to dollars,\u201d Lee wrote. \u201cHistorical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.\u201d<\/p>\n

Lee says that $25 billion prediction — derived from his estimate that U.S. households had $92 billion in taxable gains from cryptocurrencies in 2017 — would represent 20 percent of capital-gains tax receipts to the U.S. Treasury. He estimates total capital gains receipts will hit a record $168 billion for tax-year 2017.<\/p>\n

A crypto bull who maintains a year-end price target on Bitcoin of $25,000, Lee sees the selling pressure passing.<\/p>\n

\u201cWe still like Bitcoin and large-caps,\u201d he said, adding that \u201cwhile we believe the bear market for alt coins is largely over, we do not see upside for alts until mid-August.\u201d<\/p>\n

\"Bitcoin<\/a><\/p>\n

Now read:\u00a0Bitcoin won\u2019t be regulated out of the blue in South Africa<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Selling pressure in cryptocurrencies could ease after tax day.<\/p>\n","protected":false},"author":341034,"featured_media":236282,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44696],"tags":[187,49803,191,49801],"class_list":["post-254977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-bitcoin","tag-capital-gains-tax","tag-cryptocurrency","tag-price-drop"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/254977"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341034"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=254977"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/254977\/revisions"}],"predecessor-version":[{"id":254981,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/254977\/revisions\/254981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/236282"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=254977"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=254977"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=254977"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}