Very interesting article. According to Tom Lee, a well known Wall Street analyst on Cryptocurrency, a big reason for the recent downturn is massive Crypto outflows due to huge tax bills owed from last years meteoric rise.
https://www.cnbc.com/2018/04/05/wall-streets-tom-lee-predicts-massive-outflow-from-cryptocurrencies-ahead-of-tax-day.html‘Massive’ selling of cryptocurrencies into fiat by mid-April to be expected, as U.S. crypto holders ‘likely’ owe $25 billion in capital gain taxes according to Tom Lee, head of Fundstrat Global Advisors.
It also looks like exchanges themselves are a big part of that massive Crypto outflow in to USD.
Many exchanges have net income in 2017 [of more than] $1 billion and keep working capital in Bitcoin or Ethereum and not in USD — hence, to meet these tax liabilities, are selling BTC/ETH.
He also predicts the recent sell off will be short-lived.
"Ultimately, we expect bitcoin to find footing after April [17], tax day," Lee said.
Lee still sees bitcoin nearly tripling to $20,000 by the middle of this year, and rising further to $25,000 by year-end. He expects ethereum to quadruple to $1,500 by the middle of the year and ultimately reach $1,900 by the end of the year.
