As the tax filing deadline nears, this event, combined with other influencing factors, causes noticeable market turbulence, notably in the crypto asset sector. In the US, the tax submission deadline falls on April 15th for most people. Yet, some states and specific individuals are granted extensions.
Many market analysts believe that the weeks preceding a deadline, such as the IRS tax deadline, often see a pessimistic perspective from investors due to their focus on repaying capital gains taxes from the previous year. Consequently, Bitcoin (BTC) and other leading assets have experienced weekly losses following this past weekend’s increased selling pressure. As the market starts to rebound, keep an eye on these five assets:
Bitcoin (BTC)
The IRS tax deadline has caused a significant sell-off of Bitcoin, resulting in a price drop of over 5% in the past week and nearly 3.31% this month. This sudden outflow of Bitcoin from the market follows a long period of inflows due to the approval of spot Bitcoin ETFs.
A large number of Bitcoin investors believe that the price of $66,000 is relatively low due to the halving event following the IRS tax deadline and various additional reasons.
Ethereum (ETH)
Wealth managers continue to view Ethereum as an essential investment thanks to its staking capability. However, Ethereum experienced a 5.2% decline this week, primarily due to the IRS tax deadline and broader economic influences. The primary motivation fueling Ethereum’s growth remains optimistic anticipation for a U.S. spot ETF approval.
Solana (SOL)
Solana’s current price is $154, marking a 12% decrease this week. This week saw significant investments from institutional investors in Solana’s offerings, earning it the label of being favored among institutional investors due to these inflows. Analysts predict that the next phase for crypto could involve a new price trend emerging.
Dogecoin (DOGE)
This past week, DOGE was among the cryptocurrencies that suffered significant losses, primarily due to external economic factors. The popular meme coin experienced a 17% decline over the last seven days as investors braced for the IRS tax deadline and geopolitical tensions heightened. Memecoins had seen a surge earlier in the year, but their momentum has since slowed down. However, if a bull market were to emerge, crypto enthusiasts could anticipate renewed interest and investment in the ecosystem.
Shiba Inu (SHIB)
Shiba Inu saw a weekly decrease of 17.6% that was comparable to its prior reduction, accompanied by a more substantial exit of 19% this month. With the value of the asset dropping after earlier gains, some members of the community are optimistic about a potential price surge due to increased interest in meme coins. The IRS tax deadline led to a decrease in market activity, while heightened geopolitical tensions contributed to losses in both stocks and cryptocurrencies.
Memecoin Plunge 18% Following Massive Crypto Liquidations
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2024-04-15 11:25