Bitcoin's latest climb brings post-Tax Day rally to more than 8%

Bitcoin's latest climb brings post-Tax Day rally to more than 8%


  • Bitcoin traded more than 2.5 percent higher Friday near $8,500, marking an 8.5 percent rise from its low hit Tuesday, which was the original deadline to file taxes this year.
  • Many cryptocurrency analysts attributed much of bitcoin's decline in the last two months to investors cashing out to pay taxes on last year's massive capital gains.
  • "We believe the 'winter' is ending for Bitcoin, as the crypto to fiat pressures from tax day subside, and as headline risks seem to be fading," says Tom Lee of Fundstrat Global Advisors.

Bitcoin jumped Friday morning, bringing its post-Tax Day gains to more than 8 percent.The cryptocurrency spiked about $300 to a high of $8,554.97, according to CoinDesk's bitcoin price index. Bitcoin was trading more than 2.7 percent higher near $8,500 as of 4:10 p.m. ET.

That marked an 8.5 percent rise from a low of $7,834 hit Tuesday, which was the original deadline to file taxes this year. The IRS gave taxpayers another day to submit their returns after the agency's web page for making the payments crashed Tuesday.

Bitcoin's climb since Tax Day

Source: CoinDesk

Many cryptocurrency analysts attributed much of bitcoin's decline in the last two months to investors cashing out to pay taxes on last year's massive capital gains. Tom Lee of Fundstrat Global Advisors estimated U.S. households owe $25 billion in taxes on their cryptocurrencyholdings. He predicted bitcoin would recover after Tax Day, and has a $20,000 mid-year price target.

"The U.S. tax day is behind us (April 17th) and since then, the overall tone in the crypto market has improved," Lee said in a note to clients Friday. "We believe the 'winter' is ending for Bitcoin, as the crypto to fiat pressures from tax day subside, and as headline risks seem to be fading."

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