Massive Sell-off To Avoid Capital Gains Tax Drags Entire Crypto Market

Nov 08, 2018 at 23:37

The entire crypto market is in a gloomy state, led by Bitcoin’s 0.78 percent drop attributed to a massive sell-off that is triggered by traders who want to avoid paying capital gains tax before the April filing.

The premiere cryptocurrency is now valued at $6,461.40 a piece with a market cap of $112.4 billion.

Since 2014, the Internal Revenue Service ruled out that first-time investors of cryptocurrencies will be slapped with taxes as digital tokens were defined as property and not currency.

“Those who have never paid taxes before are shocked. Many people gained a lot from cryptocurrency last year but currently do not have enough cryptocurrency to pay taxes for their last year’s gains,” Catherine Wood, chief executive officer of ARK Invest, said in a statement.

Among the top coins, Bitcoin Cash suffered the biggest drop at 5.94 percent to $597.16 a piece and a market cap of $10.3 billion.

Prior to this drop, BCH rose sharply early this week driven by positive sentiment from traders and exchanges and investors stocking up tokens ahead of a scheduled hard fork in hopes of scoring free coins.

Meanwhile, Ethereum, XRP and EOS went down to $213.80, $0.51 and $5.58, respectively.

On the other hand, Stellar, Litecoin and Cardano plunged to $0.26, $53.75 and $0.08, respectively.

Likewise, Monero decreased by 0.57 percent to $111.27 a piece as Tether slightly dipped by 0.2 percent to $0.99.