Reason Behind Bitcoin’s Price Crash Revealed

[Tappertit]

Only impose in Tax is not the only reason for price drop based on this there  are many reasons like ETF rumor and demand and supply  is also cause of this.

[1714110655]

1714110655

[1714110655]

1714110655

[1714110655]

1714110655

[nussy]

I did not see the point where this news should affects the price of bitcoin. And secondly, tax also should not even affect the movement of cryptocurrency in any way whether been seen as an asset or a currency.
The government that wants to impose tax should state categorically on what basic are they imposing the tax, is the tax been impose on the holder of cryptocurrency for possessing Crypto coins or base on the amount of coins you possess.

[zxrcoin]

There many reason behind the bitcoins declining but this should be one of them. BTC is volatile so to give more taxes from it’s benefit is not exceptable.

[ranman09]

They we're that is why they left crypto? If they are the real pioneers of bitcoin, not this kinds of things will make leave such a wonderful technology.

They might have gained a lot more bitcoin from this so-called dump because they know this thing can shake the government that much.

[CrazeCoinz]

I seriously doubt taxes are the reason that the market has fallen this bad.  Its fallen significantly more than the tax bill would be if everyone had paid in full.  I think there are strong fores at play here during this year long pump and dump we just had.

This could be a price dumps as they want to buy more bitcoin when the price hit the bottom due to panic selling of those weak hands investors. A strategy that has been use by those big holders of bitcoin as they can play around with the prices when it just a mid-range. We just wait for few days to determine what went wrong with the market situation.

[Haten1975]

Actually If we think about the market condition then most of the coins are infected for price based on this some country banned this coin also ETF rumor may cause of price change and impose in tax in BTC is not the main reason for price fall.

[Crt01]

It is hard for them to tax since the Bitcoin to cost is exceptionally unstable. There are numerous escape clauses in this control on the grounds that Bitcoin isn't just a property it is, truth be told, a cash where you can purchase merchandise on the web.

[cryptocooper57]

That's not a good news at all. Cryptocurrency market is always fluctuating but the actual cause behind it can directly be never found. According to this article, the Bitcoin investors in US are selling of their Bitcoins so that they can pay their taxes. This might be the reason of fall of price of Bitcoin.

[gabmen]

I seriously doubt taxes are the reason that the market has fallen this bad.  Its fallen significantly more than the tax bill would be if everyone had paid in full.  I think there are strong fores at play here during this year long pump and dump we just had.

This could be a price dumps as they want to buy more bitcoin when the price hit the bottom due to panic selling of those weak hands investors. A strategy that has been use by those big holders of bitcoin as they can play around with the prices when it just a mid-range. We just wait for few days to determine what went wrong with the market situation.

Yeah i don't think it has that much effect as well. Manipulation can be blamed a lot more than that kind of fud since it's going to be hard anyways to run after each and everyone who made big profits back then.

[annasadia]

The tax paying for BTC in the USA is one of the main reasons for the BTC price cash, it might be true. But I think, it is not the prime reasons as most of the coins stay outside the USA, we know. BTC price may be due to market volatility and hypes that created recently.

[annasadia]

It should be one of the reason for bitcoin’s declining. By these many investors lose their interest to invest on BTC.

[Kprawn]

This makes no sense......

https://www.irs.gov/newsroom/2018-tax-filing-season-begins-jan-29-tax-returns-due-april-17-help-available-for-taxpayers

" ....when a person holds on to Bitcoin for more than a year before selling, it will only be liable for what the IRS refers to as

long-term capital gains. The rate for this kind of tax is significantly lower from about 15 to. 23.8%. " So are you saying they

are selling to prevent long-term capital gains or are they selling to pay it?

[Neseece]

I did my research online after reading this post and found out that there's actually some truth to it. But it is still beyond my understanding that how could IRS consider Bitcoin as property rather than a asset. Another thing which concerns me most is that how was the people tracked who made the transactions during that time since Bitcoin is built on a decentralized network.

[jamesblue1]

If this is true, then how are we able to ensure anonymity? I understand that we really need to undergo KYC, but it should be held for bitcoin users itself and not to be shared to other people especially the government.

[Baooroe]

There will always be fluctuations in the cryptocurrency market. It is not possible to know the definite cause of the recent dump of Bitcoin. But it is assumed that this dump is due to the reason that the US investors are selling of their Bitcoins to pay their taxes.

[Reid]

Yeah right.
We need to pay the taxes now. Why? Because bitcoin is getting expensive. What the hell is that about??!!!

They did not even care before and governments trying to put it down after it went through a higher price that Gold. Now this?!
Oh yeah. Like hell I would pay. They wont even find out the stashes of bitcoin users. 

[adnandanish102]

Exactly, the IRS made such an announcement but it is not easy to regulate the tax pay by bitcoin owners as, there are some distortions regulating these type of attempts, one the main is the volatility of bitcoin price because the original property has its value and increases with the spend of time but bitcoin has no stable value, even that no one is responsible on the collapse of its market then how can people muffle them into taxes of an non-trusted property?

[Little Pixies]

Though I doubt about this being the only reason for the current price drop as there are other reason like ETF rejection which has played a big part in the market crash. But, the decision from IRS has definitely have some influence in it. But, it is really absurd for them to consider Bitcoin as a property.

[isllander]

It can not be said that this is the main reason. As one of the necessary solutions, yes. We are waiting for the regulators to turn their faces and begin to help.

[audaciousbeing]

Early investors in Bitcoin are faced with large capital gain taxes from the profit they made in 2017.

Read more here: https://smartereum.com/5636/the-real-reason-behind-bitcoins-price-crash-revealed-tue-aug-7/

Qoute from that link,way back 2014 IRS made an announcement that crypto's are defined as a property and not a currency.
So as such they are entitle to pay thier taxes as property owners.

Capital gains only arises when you sell and that should not be a problem for someone who wants to comply with tax laws and also there is the option of roll over whereby the money generated from the disposal of the asset that generated the initial capital gain is used to purchased another asset. The capital gain at the time is then rolled forward to the time when the new asset is eventually disposed off. So with this, several options are available based on my understanding of the dynamics of Capital Gains Tax which should not be too different across countries

1. If I kept my bitcoin in my wallet all through 2017 saw a significant increase but I didn't sell, I am not liable to pah CGT because I didn't make any gain.

2. If I sell in 2017 and kept my money, then CGT becomes payable.

3. If I sell in 2017 and I used the proceed to buy more bitcoin when the price crashed, then I will pay my CGT when I eventually sell.

In conclusion, its not about CGT as not everyone in bitcoin lives in one particular jurisdiction to have made such huge effect on price.