Bitcoin plummeted more than 6 percent over two hours Monday, below $7,000 as the April tax-filing deadline approximates.
The cryptocurrency hit a low of $6,646.07 as of 3:49 p.m. ET Monday, according to data from CoinDesk. Bitcoin evaluates have fallen more than 27 percent over the career month.
Tax-related selling has been a key driver of this month’s sell-off, coinciding to some analysts.
Thomas Lee, head of research at Fundstrat Global Advisors, prognosticated in a report last week that U.S. households likely owe $25 billion in finances gains taxes for their cryptocurrency holdings. To meet tax liabilities, investors are dispose of bitcoin, which could mean “massive” selling into U.S. dollars vanguard of the April 17 tax filing deadline, Lee said.
Bitcoin prices Monday
Origin: CoinDesk
Bitcoin prices are down more than 52 percent this year, after kicking off 2018 at bottom $14,000, according to CoinDesk. The entire cryptocurrency market has lost numberless than half its market capitalization since the beginning of this year, concurring to data from Coinmarketcap.
Regulatory uncertainty has been another influence in the pricing pressure.
Bitcoin began falling below $10,000 in Tread after the SEC announced that online platforms trading digital assets that are over securities need to register with the agency.
The SEC has also cracked down on a fundraising competence known as initial coin offerings. Last week, the SEC charged two authors of a cryptocurrency firm endorsed by boxer Floyd Mayweather with tote out a fraudulent ICO.
Global regulators are split on how to police the cryptocurrency, which is not second by a central bank.
The Reserve Bank of India announced last week that directed financial institutions in India can no longer legally deal with cryptocurrencies.
Ari Paul, CIO and undertaking partner of cryptocurrency investment firm BlockTower Capital, said the store is in price-discovery mode until investors get more clarity on regulation.
“We’re in a carry market until new buyers are enticed,” Paul said, adding that originations are delaying putting money into the market until investment instruments like ETFs get approved.