Bitcoin is performing admirably in the market today as it tests the $9,000 threshold. The newly discovered bullish momentum isn’t any astonishment for Fundstrat Global Advisors’ Analyst Tom Lee, who said that expense filings were cutting the cryptocurrency market down and ‘Tax Day’ would in the end trigger an upside move for Bitcoin.
The Bitcoin price has been relentlessly ascending since April 12 in the wake of being stagnant at the $6,500-$7,000 range just weeks earlier. The main cryptocurrency by market cap is up by about 40 percent from the April lows as it has effectively crossed the $9,000 line to print a high at $9,069, as per TradingView.
Tom Lee, head of research at Fundstrat Global Advisors, had already clarified that the tax obligation on Cryptocurrency holdings last year was behind the downward trend of the market as holders of Bitcoin and other Cryptos cashed out their holdings to settle the tax man.
“The U.S. tax day is behind us (April 17th) and since then, the overall tone in the Crypto market has improved. We believe the ‘winter’ is ending for Bitcoin, as the Crypto to fiat pressures from tax day subside, and as headline risks seem to be fading”, Tom Lee said in a note to investors.
As digital currencies constitute property, as per the Internal Revenue Services, the US tax authority, these are subject to capital tax. The 1,300% upward move in 2017 may have brought about $25 billion in collected taxes for the US tax authorities.
Tom Lee also recommended financial specialists to watch out for the CoinsharesCrypto ETF, a main marker for Bitcoin, which he compared to Punxatawney Phil, a groundhog who predicts whether winter is over in view of its shadow.
“We believe large institutional investors globally use this ETF as a way to quickly gain exposure to Bitcoin. Hence when shares rise, big money is buying Bitcoin”, Tom Lee added. He predicts Bitcoin will reach $20,000 by mid-year and $25,000 before the finish of 2018. The analyst sees Bitcoin at $91,000 by early 2020.
Sentiment in the business has also enhanced significantly after news that leading investment funds are entering the Cryptocurrency market, including George Soros and the Rothschild family. The Soros Fund Management venture internally approved the exchange of virtual coins. Soros has as of late called the market a “bubble” and that speculators were working on “some sort of misconception.”