With this week comes another Dip for Bitcoin…
In the last 24 hours bitcoin has dropped close to $1500! While this may not be much in the world of Bitcoin; it's down about 50% since we saw it at all-time highs! Around December 17th we were looking at a high of $19,500.
What is causing the drop?
There are many factors that contribute to dips in the Crypto Space. Mostly FUD (Fear, Uncertainty, and Doubt.)
For the current dip we had an analyst on CNBC claim that he predicts Bitcoin to lose 90% of its value this year; pricing Bitcoin's value close to $1,000 That is a bold statement to make.
News like this will spread like wildfire; catching many of the new investors in a very emotional state after possibly just investing at all-time highs.
United States has made a bold move to combat crypto gains with the new tax bill in place since December 14th 2017.
This shouldn't be that big of news by itself. We all know we can't escape the tax man. This news does come at a bit of a burden for the way this economy is handled. The IRS is going to expect tax payers to report their own taxes regarding crypto trading. Every transaction needs to be kept track of this year (2018.) If you're selling Bitcoin for Ethereum, that is a taxable transaction and you will need to report your gains or losses.
In my opinion, if they want us to pay taxes, they should make it as easy as possible. The best way to do that is to tax when you return back to dollars or when the crypto is accepted at a retail location. At this point your transaction will be recorded as income as it was spent, and the retailer will be taxed on mark-up of their products at the time of sale.
Tax season is here.
January has traditionally been a very weak point over the history of trading crypto. I don't really know why but I have a feeling it has something to do with the way China handles their finances.
Tax season is here for Americans. I think this is going to affect the market in a positive manner. Everyone has been talking about Bitcoin, Ethereum, and Litecoin over the holidays. This is when most people have some money in their pockets and I think this is when they are all going to start flooding into this market. Watch out, the heard is coming!
My thoughts:
Overall, the market has to correct. It has to come down because things just don't rise forever. The news has a lot of pull in America and around the World. FUD spreads quickly, and Whales will always have control over a market. If you become weak handed, the Whales win. The best chance people have in this market is to buy and hodl!
Buy the dips and hold for the ride! It's hard to call those peaks or the valleys so just holding is the least stressful.
A few weeks from now, perhaps a few months, prices will be higher than those of the present. BTC is currently sitting at $10879 at the time of writing this. I'm hoping for a 6 figure BTC by the end of this year but will gladly accept a BTC with a value of $20,000-$50,000 by January 2019. I see $8,000-$9500 being our bottom. We should start to see some gains here soon! Stay strong and HODL those Coins!!