Many analysts have conducted the same statement that Bitcoin's decline in the past two months is caused by investors selling a large amount of cryptocurrency to pay off taxes for last year profit. Fundstrat Global Advisors' Tom Lee estimates that US households need to pay $ 25 billion (tax) to the tax department. He predicted that Bitcoin would recover after the tax day ended and the peak will be around $ 20,000.
Lee also said in a note for investors that " 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 forBitcoin, as the crypto to fiat pressures from tax day subside, and as headline risks seem to be fading .”
In addition, Bitcoin increased sharply is partly because of loosening policies and open investment environment from major financial institutions in the world.
" policymakers should keep an open mind and work toward an even-handed regulatory framework that minimizes risks while allowing the creative process to bear fruit," statemented in an article from The Guardian by Christine Lagarde, chief executive of the IMF.
Lagarde has presented this recommendation in IMF's annual meeting this week in Washington, amid regulatory authorities in many countries are still figuring out how to manage the Cryptocurrency - the type of asset designed to transact without the need of authorizing of any Central bank.
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