American traders are required to pay $25 billion in taxes on capital gains for transactions with digital money, which can lead to “massive” removal of tokens into U.S. dollars by the deadline for filing tax returns in mid-April. To this opinion came well-known investor and analyst Fundstrat Tom Lee.
“This mass Exodus of cryptocurrency to the US dollar, and historical estimates suggest that the outflow of each dollar is reflected by a fall in the market capitalization of cryptocurrencies for $20-25”
Former chief strategist at JP Morgan Chase, Lee is the only major analyst on wall Street who actively and openly supports Bitcoin and other cryptocurrencies.
“In addition, we believe that the pressure on the market by cryptocurrency exchanges, whose activities are subject to income tax in the jurisdiction of the United States,” said Lee. “The net profit of the majority of the exchanges in 2017 of over $ 1 billion, and working capital is a bitcoin and everyody, not dollars. Therefore, for the payment of tax liabilities exchange sell BTC / ETH.”
According to analysts, the biggest by market capitalization, the cryptocurrency fell by 50 percent in the first quarter, mainly due to the uncertainty of the regulation.
“The risk of consequences from the actions of the regulators are still significant. The mood is still horrible, and the position of Bitcoin disastrous”, adds the analyst.
However, despite the recent fall of Bitcoin prices, American investors still have to pay taxes on the capital gains obtained due to a significant rally in the cryptocurrency last year. The IRS considers “virtual currency” as property, that is, operations are subject to tax.
According to experts, the cryptocurrency investors have tax liabilities in the amount of $ 25 billion. USA in 2017.
According to Li, investors in 2017, received a record revenue of $ 1.04 trillion at the expense of cryptocurrencies and stocks. However, during tax ”season” courses of crypto-currencies will fall.
“Ultimately, we expect that Bitcoin will get stronger after April 17 — deadline of payment of taxes,” Lee said.
Paying taxes is not like anywhere else: a recent poll of 9 thousand Americans showed that more than half of respondents are going to cover from payment of taxes for operations with cryptocurrencies.