Bitcoin Forum

Wall Street Bitcoin Bull Tom Lee Predicts “Massive Outflow” Of Crypto Before Tax Day

Details: https://cryptotown.io/news/wall-street-bitcoin-bull-tom-lee-predicts-massive-outflow-of-crypto-before-tax-day-cointelegraph/index.html

Well I don't know, I cannot really say anything in effect to this other than the fact that there is no way to predict bitcoin movements in the market.

I think this is certainly an interesting perspective...

the full article can be found on Cointelegraph:

https://cointelegraph.com/news/wall-street-bitcoin-bull-tom-lee-predicts-massive-outflow-of-crypto-before-tax-day

After reading the article, he did made some valid predictions about the tax day coming up soonest on the 17th of April and its effect on bitcoin price. However, its still all predictions and things don't always go that way and I won't surprised that the impact he predicted, might not be up to that just like when it was reported that Wall Street guys would be getting their bonus in January which would lead to a surge in bitcoin price which unfortunately did not happen.

Again, he made prediction about how people would be selling their crypto to pay taxes but I don't see how much effect that would be, because income tax should be on income generated from all sources and if I work and get salary, I should be charged on that not on crypto that I have not sold but the tax law in the US could be different though.

Tom Lee Lindstrat predicted a "massive outflow" of crypto-currency to Fiat on the eve of a tax day in the US, CNBC reported on April 5.

      In the report, Lee notes that US investors have to pay $ 25 billion to pay capital gains tax, and crypto-exchange exchanges must pay income tax, and investors and exchanges will sell their crypto currency for paying taxes:

     "We believe that the crypto-exchange exchanges that are subject to income tax in the US jurisdiction will put pressure on the sale. Many exchanges have received net profit of more than $ 1 billion last year and have retained working capital in Bitcoins and Ethers, and not US dollars, therefore, to fulfill these tax obligations, they will sell their crypto currency. "
       According to Lee, "according to historical estimates, every $ 1 outflow is $ 20-25 in the market of crypto-currency."

      Crypto-currency markets showed a 50% loss in the first quarter of 2018, noting the worst results for BTC and ETH in the history of coins. Nevertheless, anyone who was a member of the crypto-currency market in December 2017 and watched the growth of the BTC price to $ 20,000, will have to pay a capital gains tax for its income.

      The Bitcomin bad luck index (BMI) by Thomas Lee, developed in mid-March to show how "unfortunate" BTC holders are based on current prices, demonstrates that holders of crypto-currencies are currently experiencing "misfortune": "

"The risk from regulators is still significant. And the mood remains terrible, which is measured by our index, which still shows unhappiness. "
      Lee came to the conclusion that "ultimately, we expect Bitcoin to take a firm position after April 17, the tax day."

      Lee recently predicted that Bitcoin would reach $ 91,000 by March 2020, based on the results of the BTC after past failures. In January of this year, when the BTC price was about $ 9,000, Lee told CNBC that BTC would reach $ 25,000 by the end of 2018, and not by 2022, as he had previously predicted.

An interesting article indeed. Got to a l learn a lot of things.

This is a good prediction. Logical, to my sense. We just need a little positive wave to give pace in the price development. Thanks a lot for sharing. Good read I must say.

This is a good article and this could explains why the price of bitcoin is dropping in value. Aside from the negative news about banning of crypto and ICO's this article explains clearly why there is a huge drop. This is all because of the exchanges selling huge volume of btc's to pay their taxes. And I do hope that Tom Lee is right that after April 17, 2018 bitcoin will start rising up again.

Actually many people loves bitcoins because it gives or provide a huge amount of income wherein all people will raise their respective lives from the poverty which they experience in their generation.
It is great that bitcoin will give a huge cash outflow for all of us.

Well the date wasnt far off but I dont think it was the only reason for selling just it helped tip the boat and we took water and sank a little lower then we might have otherwise.   Any time sellers occur in confluence this is a danger, unless buying is also occuring for very high volume perhaps.

At what tax rate is this payable, wont it vary for everyone and with able to offset losses and costs against gains.   Perhaps thats just business, but the case is perhaps slightly oversold.   The rebound now would be part of that doubt being lifted, perception can alter market trends not just the actual selling.