Whales and/or Wall Street will push the price of Bitcoin (and by extension, cryptos in general) as low as they can before April in order to force holders who need to pay taxes to sell their coins at a massive loss. People who traded will need to pay taxes based on massively inflated values from last year, so they will be forced to sell off their coins at a loss if they overextended and do not have enough capital to cover taxes. Obviously, the lower the whales keep Bitcoin, the more they can accumulate.
For example, a guy on Reddit has to pay 15k on taxes from trading last year even though he started with 2 BTC and ended with 2 BTC. Thus, he would sustain a loss of 1.5 BTC at the current price of 10k even though he made no profit from trading. This hurts early adopters and/or traders who have most of their wealth in cryptocurrency the most.
Good points! However... Whales are also putting themselves at risk of losing their Bitcoin by selling their's. I will keep buying the dips. Bitcoin is REAL MONEY. $$$
But I do not doubt that Bitcoin can drop even back to sub-2k.
The dude on Reddit needs to renounce his American citizenship or become a resident of Puerto Rico. USA = EVIL slave state.
pinkwojak
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@mightytrader, Whales can afford to take massive temporary losses, while smaller traders/holders are screwed.
But I do not doubt that Bitcoin can drop even back to sub-2k.
The dude on Reddit needs to renounce his American citizenship or become a resident of Puerto Rico. USA = EVIL slave state.