The price of Bitcoin seems to have switched to a bullish momentum after spending a period of two months on a downward path that shed about $5,000 of its value. The market rebounded across the $8,000 line on Friday and crossed $8,400 already. Bears argue that a short squeeze is behind what they call “a market correction”, but the tax season provides a reliable explanation for a bullish outlook.
Analyst Predicts Bitcoin Will Surge After Tax Day
The cryptocurrency market took the world by surprise as it surged in late 2017 with great strength. Bitcoin investors were, too, surprised as big gains also meant a large tax liability. Market participants who have sold cryptocurrencies or used them as a means of payment, as well as those who mined virtual currencies, are likely obliged to pay their due taxes. The IRS is expecting people within the ecosystem to declare their capital gains and income generated with cryptocurrencies.
The tax season has been driving the price of Bitcoin as many investors were forced to sell a few to pay their taxes, according to analysts. As Tax Day is two days away, on April 17, 2018, traders are calculating what is at stake in order to predict the next bullish run in the digital currency market.