Massive Crypto Capital Outflow Expected by Tom Lee

Head researcher of Fundstrat reports that US citizens owe $25B in taxes for their crypto holdings, and the last tax day is 17th of April
06 April 2018   432

Analyst of Fundstrat Tom Lee expects that the "massive outflow" of capital from the cryptomarket can accelerate on the eve of the last day of paying taxes in the US. This is reported by CNBC.

American traders owe their state about $ 25 billion in taxes from the income they received as a result of operations with cryptocurrencies, Lee reports. In addition, the cryptocurrency exchange should also pay off the state, some of which may also try to liquidate their assets in the coming days.

This is a massive outflow from crypto to USD and historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value. Additionally, we believe there is selling pressure by crypto exchanges who are subject to income tax in U.S. jurisdictions. Many exchanges have net income in 2017 [of more than] $1 billion and keep working capital in [bitcoin]/[ethereum], not USD — hence, to meet these tax liabilities, are selling BTC/ETH.
 

Tom Lee

Head of research at, Fundstrat

The crypto market experienced a 50% drop in the first quarter of 2018, and for Bitcoin and Ethereum it turned out to be the most unsuccessful first quarter in history.

Regulatory headline risk is still substantial. And sentiment remains awful, as measured by our bitcoin misery index, which is still reading misery. Ultimately, we expect bitcoin to find footing after April [17], tax day.
 

Tom Lee

Head of research at, Fundstrat

Earlier, Lee assumed that the bitcoin rate would reach $ 91,000 by March 2020, basing his forecast on market indicators after periods of decline in the past. 

Japan to Tighten Regulation Due to Zaif Hack

$ 62 000 000 worth cryptocurrency was stolen from the Zaif exchange few weeks ago
25 September 2018   70

Hacking of Zaif exchange is the reason for toughening control over the market by the financial regulator of Japan, Reuters reports.

The first measure taken was administrative sanctions against the exchange and its operator Tech Bureau Corp. The Financial Services Agency (FSA) has expanded the list of requirements for the latter, pointing out the need to identify preventive measures and search for the organizers of the theft.

Shortly before that, researchers of the Japanese financial company Tech Bureau Corp could not provide details of the theft of $ 62 million from the Zaif crypto exchange at the request of the FSA. The Osaka-based operator had to investigate the causes, consequences of the theft and options for compensating the victims. According to the Agency, the financial company could not cope with the task.

According to the Tech Bureau, the exchange was hacked on September 14 within a few hours. The problem with the server was discovered by the site staff on 17 September. Official confirmation of the incident and notification of the authorities was made only a day later.

Recall, the theft of $ 60 million from the Japanese stock exchange Zaif caused a surge of volatility of bitcoin. For a short time the price was able to overcome the distance of $ 400.