Bitcoin has lost half its value so far this year.
On Monday, Bitcoin price took a dive of 6% in just two hours. It managed to regain some of its losses the following day at 9am. One bitcoin cost $6,672 which meant was a slight increase of 0.07% from its previous session.
Since reaching its historic peak levels on December 18th last year, when Bitcoin valued above $19,000 US, the cryptocurrency lost more than 52% of its value over the course of the first quarter of this year.
What caused the drastic decline in Bitcoins price?
To add to the plethora of existing events, the most recent FUD event on the list points to the season of tax settlements.
Thomas Lee, head of research at Fundstrat Global Advisors, said last week that the loss in tax revenue from cryptocurrencies trading, may be as high as $25 billion in the US.
Now, in order to meet their tax obligations, investors have begun to sell their bitcoins. According to Lee, it can mean a "mass" sale until April 17, the last date on which tax returns can be submitted in the United States. Tax deadlines will differ in other parts of the world involved in cryptocurrency trading, so one should expect the bearish market to persist at least until the end of April.
Regulatory uncertainty is another reason causing a decline.
The price of bitcoin fell below $ 10,000 in March, when the US Securities and Exchange Commission (SEC) announced that online platforms trading in digital assets must register with the SEC.
In addition, last week the Indian Reserve Bank announced that the local financial institutions cannot legally deal with cryptocurrencies.
Meanwhile, as the Polish Ministry of Finance said on Monday, the ministry is working on proposing a convenient tax form for cryptocurrencies. Whether such promises will be kept and whether they will benefit or harm the cryptocurrency sphere in Poland remains to be seen.
Let us hope for the best.
MediumJack
