What is causing the correction?

Outdoorag011 said:

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What is causing the correction?

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I would imagine the threat of 80% capital gains tax on crypto

Wth happened? Everything I owned just went down hard

Outdoorag011 said:

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What is causing the correction?

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GBTC unlock period some are speculating which makes sense

But this is some serious blood. Wow

Ags2013 said:

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Outdoorag011 said:

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What is causing the correction?

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I would imagine the threat of 80% capital gains tax on crypto

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Where did you hear 80%? Seriously?

This sht is crazy

ac04 said:

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the yellen tweet you're referring to was a joke.

an asset that is up 1000% in the past year has dipped 20% in the past week. there is no reason to be upset. it could go all the way to $40k and still be macro bullish.

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I'm halfway joking, but I do believe the reason for the correction is the rumors of large cap gains taxes on crypto.

I sold 50% yesterday on the rumor because I anticipated a dip. Happy I did, and I'll see where we move from here.

Look at the bright side, BTC and ZRX are ON SALE

ac04 said:

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i think options expiration today is a more likely catalyst than an absurd and clearly fake tweet.

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Wild West days of crypto are nearly over in the states, amigo.

Suffice it to say this admin wants your money, and has a target on taxing crypto gains. Somebody gotta pay for their "equitable society".

ac04 said:

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UncleNateFitch said:

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ac04 said:

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i think options expiration today is a more likely catalyst than an absurd and clearly fake tweet.

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Wild West days of crypto are nearly over in the states, amigo.

Suffice it to say this admin wants your money, and has a target on taxing crypto gains. Somebody gotta pay for their "equitable society".

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what is your source for this other than a satirical tweet mocking biden's cap gains tax proposal? so far this administration has nominated an SEC chair that is crypto-friendly and we just saw the SEC approve coinbase for a direct listing on NASDAQ. its crazy how addicted some of you guys are to believing FUD.

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what part of ~40% capital gains tax did you not understand?

If that isn't investment unfriendly, I don't know what is

We must target the people who have accurately determined that our government isn't being responsible with currency regulation by punishing them for trying to insulate themselves.

Edit to say that if they truly want to go after that big a piece of the pie, I don't understand it. If you believe that crypto's utility is only a store of value, then why would you tax it any more than you would someone selling gold?

And if you believe that it's utility is as a currency, how does that bring people back to using USD? It just encourages users to figure out ways to use crypto for all their purchases.

AC seems to be saying, and I agree with it if he is, that the administration is not targeting crypto and harder than they are other investment vehicles. If anything, they seem to be open to the idea of crypto having a place in the economy based on some of the nominations and recent actions.

Yes, they seem to be signaling that there will be unfavorable changes to how certain investment returns are taxed but I have not seen anything to suggest that they're going to swing harder on crypto than equities.

Major players dont give a crap about US capital gains taxes. The volume on asian exchanges dwarfs the US even if you consider wash trading.

Now consider the amount of volume on decentralized exchanges located in overseas countries. You think those people are reporting taxable events on those? Lol.

Look how all the alt coins are up against bitcoin. The GBTC unlock period means large funds are dumping their gbtc after making insane returns. Thats it.

The banks gotta have liquidity to cover AMC and GME - the tax narrative is a diversion. They had to sell off their crypto positions of course!

I had heard that there would be a support level for BTC at about $50k, and that's where it seems to be holding at since the crash happened yesterday. I'm not sure the market mechanism behind it, but it seems to be holding true. Is it a bunch of people expecting this drop who put in limit orders at $50k?

XXXVII said:

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I had heard that there would be a support level for BTC at about $50k, and that's where it seems to be holding at since the crash happened yesterday. I'm not sure the market mechanism behind it, but it seems to be holding true. Is it a bunch of people expecting this drop who put in limit orders at $50k?

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It bounced off the 100 day ema

ac04 said:

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UncleNateFitch said:

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ac04 said:

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i think options expiration today is a more likely catalyst than an absurd and clearly fake tweet.

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Wild West days of crypto are nearly over in the states, amigo.

Suffice it to say this admin wants your money, and has a target on taxing crypto gains. Somebody gotta pay for their "equitable society".

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what is your source for this other than a satirical tweet mocking biden's cap gains tax proposal? so far this administration has nominated an SEC chair that is crypto-friendly and we just saw the SEC approve coinbase for a direct listing on NASDAQ. its crazy how addicted some of you guys are to believing FUD.

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Cap gains tax of 39.6% for crypto up from 20% for high earners. They are also going after a 15% tax for everyone else with gains, and may up that as well. The irs is tracking your response to the crypto question on tax this year, and they'll have a 1099 if you do over a certain amount or certain number of transaction.

I don't understand the dramatics and emotional language in your post. They've been signaling that they intend to tax crypto as property since 2014 and the cap gain changes are not singling out crypto. Your comments are technically correct, in that the us govt wants to tax crypto trading, but it seems to be worded in a way that implies this is brand new information.

I booked my $247 loss in 2020 and I intend to report my five figure gain in 2021 when the time comes. That sentence was poorly phrased.

ac04 said:

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again, biden's proposal is not specifically aimed at crypto. and 15% cap gains tax already exists for any investment. i am having a hard time following you.

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It includes crypto, and this admin is making a big push to regulate crypto.

A few factors causing the panic:

- Vast majority aren't paying 15% on their gains. Think the goofs on Reddit buying doge are paying 15%? This admin wants that money.

- High earners are trying to determine if the 40% Biden cap gains tax is going to happen.

- All investors are worried about this admin announcing they want to tax long and short term gains the same way.

ac04 said:

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so in other words they want to enforce the laws that are already in place and have been for years. and there are other laws proposed that might affect taxes on any/all investments. and this is somehow very bad for crypto?

i'm not sure how morons not paying their taxes on doge gains because they don't understand what capital gains are is relevant at all.

yes, investors are nervous about biden. because it applies to any cap gains (not just crypto as you seem to have thought about 30 minutes ago) your alternative is to sit in cash and watch inflation melt away your purchasing power.

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I just trimmed some gains and and am waiting for a sign on which direction this thing's headed before I do anything else. I also own property.

Look, the stock market is fully regulated, everybody gets their tax forms, everybody reports. That's not how crypto has ever been, but it's moving in that direction. Logically that's going to have periodic effects in the short term. Couple that with threats of rate hikes and no more long tax rates, it's chilling the market.

UncleNateFitch said:

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Look, the stock market is fully regulated, everybody gets their tax forms, everybody reports. That's not how crypto has ever been, but it's moving in that direction. Logically that's going to have periodic effects in the short term. Couple that with rate hikes and no more long tax rates, it's chilling the market.

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You do know that the crypto exchanges issue 1099s that are also reported directly to the IRS, right?