Hello Friends....
Today we talk about the real reason behind the dropdown in Bitcoin price in the previous weak.As we know Bitcoin price has been going down since january 2018 and shows its low at $5785.43 on June 24 this year and it had gain not much after that and today its price is near about $6440.
Bitcoin investors in USA made a large profit in 2017 when price of Bitcoin reached its all time high. If we talk about today they are selling their crypto to pay off capital gain taxes. Internal Revenue Service (IRS) of USA made an announcement in 2014 that cryptocurrencies are defined as property and not currency.Now those investors are stuck with large tax bills.They are either preparing to pay or selling off the cryptocurrency.
Now the question arises how does selling off cryptocurrency help people avoid paying huge taxes?
The answer is here like if a person buy and sells Bitcoins in the same year , he will be taxed on short term capital gain and it can be as high as 39% based on the tax bracket. But on the other hand if he will keep it for more than a year then he will only be liable for what IRS refers to as long term capital gain.The rate of this kind of taxes is significantly from 15% to 23.8% .
Another point which we can consider as the dropdown in the price is Google ban on the cryptocurrency related ads. Due to this the volatile currency fell by $500 within a six hour space this month...
Thank u Friends..
If you consider any other point which is responsible for Bitcoin price dropdown you can post it in the comment section...