All the major renowned cryptocurrencies along with the whole crypto verse and crypto market are hitting a low this week. One of the most renowned cryptocurrencies, Bitcoin [BTC] is plunging below its lowest in over 12 months. Bitcoin [BTC] traded below $5800 in the last 24 hours. The blockchain ecosystem is losing capital fast.
Furthermore, It is suspected that the investors and traders based in the United States might be selling their digital assets. Moreover, the selling might be taking place due to the investors trying to cash in on their digital assets. Possibly, they might be trying it to pay off their capital gain tax.
More about the reason behind Bitcoin [BTC] fall
The crypto verse has lost over $24 billion in the last 24 hours. Many of the users of the Bitcoin and new early investors invested and traded in Bitcoin [BTC] at its peak in the crypto boom of December 2017. But it is the time for repayment, as the IRS demands the capital gain tax on the hefty profit they earned during that time.
It is estimated that the action might be due to the traders and investors trying to evade those capital gain tax. Furthermore, they might be doing it before filing for their April taxes.
Tyler Jenks, President of Lucid Investment stated this on his official Twitter handle. “It has begun. Staring into the void. Broken to new lows. Broken the Hyperwave Phase 2 Line. More later. I am on the road.”
Bitcoin [BTC] selling is also affecting other major cryptocurrencies and digital asset tokens in the crypto verse. CoinMarketCap reported that the cryptocurrency market lost about $24 billion in the last 24 hours as stated above. According to OnChainFX, some digital asset tokens such as DNT, MANA, and BAT are losing by a whopping 20 percent in the last 24 hours. Bitcoin is currently trading at $5,697.56 and is still down by about 8.94 percent.
Disclaimer: Koinalert’s content is only for information purpose in nature and should not be considered as investment advice. Do your own market research before investing in any cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.