Bitcoin Forum

With the tax season currently running in the US market, it has been reported that the US investors have over $25 billion capital gain taxation liability for their cryptocurrency investments. This cryptocurrency tax obligation is expected to bring a huge slump in the crypto market as sell out will be in order which will reportedly abate after tax season.

About $25 billion cryptocurrency tax, 20% boost to what IRS receives!

https://coingape.com/us-cryptocurrency-tax-day-pressure-selling/

And the exchanges don't know how crypto markets work and instead of selling at 19k and 17k they'll sell at 6-7k, right?
People, please think a little more if what you read makes sense, really...

I had estimated something similar for the end of 2017 (https://bitcointalk.org/index.php?topic=2593499.0) because of Argentina introducing a cryptocurrency tax (more precisely, including cryptocurrencies into taxable assets for capital gains tax if your profit is larger than ~2500$/year).

Well, and there was definitively a sell-out in December ;D

But I don't think these sells to try to prevent taxes can lead to more than a very limited price dip. While the US is certainly more dominant in the "crypto world" than Argentina, I think they aren't dominant enough to drive the price down for a longer time, and most people will try to hide their BItcoins anyway.

Instead, it seems that the $6500 level has been tested well now and price is going up again. I don't think it will be a complete recovery up to December levels, but next week could be bullish or the price could go sideways at least.

BTW: I think there is an error in the title - wouldn't make "investors" instead of "exchanges" much more sense?

already tax deducted yes bitcoin.

so it's income tax now

what does it mean to sell, and after taxes, what will you do, look at others! taxes have always been, the question of how you live, according to the rules and regulations or without rules

I am not sure, but I  dont think that one should calculate the tac from ones holdings but from the revenue.
Also only those who buy and sell cryptos in US in exchnages which are giving out data are eligble for this .

Off-course I can be wrong, I am not a US resident.

According to the article because of the incoming tax season it means that crypto holders will be a fixed situation to sell their cryptos so that they could the taxes to IRS. I think with a lot of people selling and nit a lot of buying taking place , isn't it going to bring down the value of cryptos?

Well, probably if that happens all cryptos and coins will drop if tax evasion is coming, people selling their coins in order to paid tax.
But I think that depends on which country you are, well still lucky that here our country we will not have any tax put in crypto's we still enjoying using bitcoin, the only thing we paid tax when we buy goods.

So this was posted a month ago...where is that massive crypto sell out you said would come?

One of the easiest ways you can tell if "news" is worthwhile or not is simply looking at where it comes from.
All these big "news" about worldwide changing crypto events coming from no name no authority crypto websites is laughable.

On top of that, any news that claims huge change sin the crypto market because of something happening in America is untrustworthy.

US contributes to such a TINY portion of the overall crypto market.
The majority comes from China, Korea, and Japan.

Regulations, taxation, etc. from any American entity will not be big enough to make huge sways in the market.
Mostly, it is just Americans being Americans again.
Americans have the habit of thinking they are the center of the universe.

It is true that such a tax season in America can affect the price of bitcoin decline, but we better take the opportunity to buy bitcoin at the time the price goes down.

Many will go away from taxes will hide their bitcoins. No one wants to have an additional tax burden and everyone will look for methods how to avoid it

and there are ways to hide your Bitcoin and crypto assets!

Moving assets "offshore" to Banks in the likes of Switzerland, Liechtenstein
who offer some form of privacy as a remnant of the "numbered" bank account age.

https://www.raiffeisen.li/en/private-banking.html

http://www.investmenteurope.net/regions/switzerland/swiss-private-bank-accept-wealth-crypto-assets/