Financial analyst has suggested that $25 billion crypto tax may not have been paid to IRS.
Tom Lee, Fundstrat’s analyst, has indicated that cryptos account for nearly 20% of last year’s U.S capital gains. With the heightened trading of cryptocurrencies in 2017, Tom estimates cryptocurrency tax owed to the Internal Revenue Service (IRS) to be 25 billion US dollars. For the IRS cryptos are commodities which fall under the land’s tax laws.
According to the financial expert, digital currencies account for nearly 20 percent of all the mainstream investment platforms that include precious metals, stocks, and equities. The current hard time facing the crypto market, Lee says, may have forced most crypto investors to sell their coins which increased the owed cryptocurrency tax.
“If this is correct, we should see improved dynamics after April 15. We still like Bitcoin and large-caps and while we believe the bear market for altcoins is largely over, we do not see an upside for altcoins until mid-August.” Tom said.
In his study, Lee reveals that the market valuation increased 60 times more than in 2016 with 30 % of the total virtual token holders in the globe coming from the United States. This percentage account for nearly 187 billion US dollars.
Lee’s report indicates that capital gains in the United State account for approximately $92 billion. Additionally, according to the report, there has been an increased pressure to sell in cryptocurrency exchanges.
But Lee is still convinced that Bitcoin, is well on course to regain its top position in price before the end of the year where it is likely to reach 25K US dollars. Since Bitcoin stated depreciating in price this year, although in the past few days has been steady, more and more people expressed their optimism in the price of Bitcoin saying it will gain more than its previous top value before this year ends.
Tom’s firm, Fundstrat created the bitcoin misery index which is meant to help investors know when to buy/sell their bitcoins.