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   534

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. 

Most Crypto-Optimists Live in Norway, Bitflyer Study

According to bitFlyer's poll on future of crypto, europeans believes cryptocurrency has future
24 April 2019   107

Most Europeans believe that in ten years digital currencies will continue to be in demand, but they do not have the same confidence about Bitcoin. This is reported by Cryptonews, citing a study of the bitFlyer.

10 thousand people from ten European countries took part in the online survey. Of these, 63% believe in a “bright future” cryptocurrency. However, not all Europeans are confident in the future of Bitcoin - only 55% believe that the first cryptocurrency will exist in ten years.

It is also noteworthy that, despite the fall in prices of most cryptocurrencies that lasted for almost a year, the majority of respondents positively assessed the prospects for the development of the market.

Most of the “crypto-optimists” turned out to live in Norway - 73% of the inhabitants of this Scandinavian country are convinced that a decade later, digital currencies will still be in society. This is followed by Italy (68%), the Netherlands and Poland close the top four (67% each).

The percentage of consumers who believe cryptocurrencies will still exist in 10 years’ time
The percentage of consumers who believe cryptocurrencies will still exist in 10 years’ time

But the exact form of cryptocurrency will exist, almost no one knows. Only 8% believe that they will become money, and 7% - a tool for investment or a means of preserving value.

The fact that Bitcoin is not generating as much support as other cryptocurrencies is in part a symptom of the market’s volatility, but is also a direct impact of the constant media attention that is associated to its volatility.
 

Andy Bryant

COO, bitFlyer Europe

He also added that the study demonstrated how much remains to be done to increase public awareness of the benefits and opportunities of cryptocurrencies.