Hedge fund Pantera Capital said that some of its sales in the crypto market are due to taxes. According to the company, the US tax day on April 18 this year could affect crypto prices. The fund says it generated $1.4 trillion in cryptocurrency capital gains last year.
The fund looked to the past years to support its argument, noting that in 2013, 2017 and 2020 Bitcoin peaked 35 days before tax day and then fell as investors sold assets to cover taxes. He also noted that crypto-asset prices tend to decline until tax day. Pantera said:
“Many crypto investors are new to the field… When tax officials tell them that 34% of their earnings are taxpayers, they usually go all-in in crypto, so the only way to pay taxes is to sell some crypto.”
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