frens, I hope you had a fantastic Easter weekend. I definitely did but it's back to reality. It' the U.S. tax filing deadline.
Post-Tax Pump
If you weren't already aware, the U.S. tax filing deadline is today. In true degenerate fashion, I waited until the very last day to do my taxes and it turned into a headache. Nevertheless, I got it done and filed. No one enjoys the process of filing taxes, especially those that do large volumes of trades and such. After today, if you haven't filed for an extension, you'll start to incur penalties so it's best to go ahead and either file or get an extension.
Either way - I'm not necessarily here to talk about taxes... I'm here more to talk about the possible effects that the tax deadline could have on the cryptocurrency market. Recently, we saw a decent pump in the market then it leveled off, but has been pretty shaky. Full of fear and uncertainty.
Historically speaking, April is kind of a neutral month in terms of gains or losses. May and June, however have historically been some of the best months in the market. Why? I dunno honestly. I'm no expert and I'm horrible at trading so don't take advice from me. I'm just making an observation.
Maybe people were taking profits or losses before filing taxes... Maybe It's all just a coincidence, but I think that we might see a large influx of capital to the market over the next couple weeks. A ton of people waiting until the very last minute to do their taxes will have refund checks coming within a month. I've seen them come as fast as a week so there's definitely going to be people looking to invest with their refunds.
Leading up to May of last year, we had a little bit of an uptrend, and a sell off after taxes. After a short dip, the cryptocurrency market capitalization touched $3 trillion before the downtrend kicked in. Obviously with a $3 trillion market cap, there was a lot of uncertainty and profit taking. People were in a state of disbelief.
Despite the "bubble popping" supposedly, we've been able to maintain a total market cap of around $2 trillion. Zoom out just a tad more and you'll see that the market cap has done a 10x increase over the past 2 years. From around $200 billion in April of 2020 to $2 trillion in 2022. Holyshit.gif That's a lot of money that pumped into the market.
Could it happen again? Sure, but it will be a lot harder since a trillion is a whole lot more than a billion.
My point is not to say that all of you are going to be rich next month, or even some months after that. What I'm saying is, I think we may finally be done with the downtrend for a little while. We may see one more dip before the "second half of the year rally" happens. Or maybe it'll be completley different this time.
A lot has changed since 2020 really, with more major corporations and brands getting involved. NFTs exploded in value and took on a total market of their own. The "metaverse" concept exploded and tons of companies like facebook Meta poured hundreds of millions of dollars into the market.
Mass adoption is starting to set in at a global scale. We have countries like El Salvador accepting Bitcoin as legal tender, companies like Strike bringing crypto payments to the masses, and entire businesses being built digitally.
I have a feeling when we finally do get that mega pump this time, we will see some incredible things happen. Pack your bags bois, because we might be headed straight to Mars. Lol.
Thanks for reading! Much love.
Links 'n Shit
| Play to Earn | Read emails, Earn Crypto | Get free crypto every day | Get a WAX wallet |
|---|---|---|---|
| Gods Unchained | ListNerds | PipeFlare | WAX.io |
| Splinterlands | GoodDollar | ||
| Rising Star | FoldApp |
