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   156

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. 

Consensus 2018 summit to be held in New York City

4th annual blockchain technology summit - Consensus 2018, will take place in New York City on May 14-16
22 April 2018   37

CoinDesk has announced its 4th annual blockchain technology summit Consensus 2018 on May 14-16 at the New York Hilton Midtown. Along with the discussions on the blockchain technology, the event is going to feature a hackathon, PoW pitch competition and a scholarship award in a partnership with Zcash. Title sponsors of the event include bloq, Deloitte, Ledger, Octagon Strategy and SONM.

Consensus 2018 will feature 250+ speakers and 4,000+ attendees from the leading industry startups, investors, financial institutions, enterprise tech leaders, and academic and policy groups who are building the foundations of the blockchain and digital currency economy. Among the notable speakers there will be Blockstack co-founder Dr. Muneeb Ali, J.P.Morgan blockchain program lead Amber Baldet, eToro CEO and founder Yoni Assia, Hyperledger executive director Brian Behlendorf, ConsenSys founder Steve Cerveny, Athena Capital founder Meltem Demirors and many others.

The full 3-day agenda of the event can be found here.