I am a little surprised at myself for not thinking through the tax implications of last year's massive increase in the bitcoin price. They are massive, and they have almost certainly put more downward pressure on the bitcoin price than my lone gunman theory.
In this article, bitcoin bull Tom Lee estimates that U.S. investors are on the hook for about $25 billion in taxes for their crypto gains last year.
This is an enormous amount of pressure to be placed on the rather illiquid market and it has certainly impacted price. Yes, we will still have to deal with the Mt. Gox trustee and his overhang, but if tax selling has been the main contributor to the bitcoin bear market, we should know relatively soon as April, 17th is tax filing day in the U.S.
Notice: This is not to be taken as investment advice.
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