Selling Bitcoin to Pay Taxes Could Exacerbate Decline, Says CNBC

Those who made huge profits off last year’s rally may be fueling Bitcoin’s drop as they cash out additional funds to pay taxes

Fri, 16/03/2018 - 16:11

Selling Bitcoin to Pay Taxes Could Exacerbate Decline, Says CNBC

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Those who cashed out large amounts of Bitcoin during last year’s record-setting run might be driving the price down as they struggle to pay their taxes, according to CNBC. Some who sold last year may have assumed Bitcoin’s epic run would continue indefinitely, and that they could sell a little more of their stash come April to cover their bills. As Bitcoin price falls, these people are now forced to sell even more of their stash (which is now worth less) to cover their tax bill (which hasn’t shrunk). While the selling of digital currency to pay taxes probably isn’t the biggest driver of this year’s bear market, it could be a factor.

About the author

David Dinkins

David Dinkins is a freelance writer who holds a Master of Arts in history from Louisiana Tech University and has extensive teaching experience both at LSU – Shreveport and University of Phoenix. He got involved with cryptocurrency in early 2014 working as part of the Dash Core Team and have served in the role of writer/editor (mostly editor) during that time. He has edited a huge number of documents for the Core Team, including the Evolution whitepaper, the PrivateSend whitepaper, and many of Evan Duffield’s communications with the Dash Community.