Bitcoin is coming off first back-to-back weekly gains since late 2017
Coming off their best week since early February, digital currencies are slightly lower Monday, with many pundits eyeing the U.S. tax deadlines that looms a day away.
The No.1 digital currency hovered around $8,000, after touching a three-week high earlier in the day, trading to $8,407.72. A single bitcoin BTCUSD, -3.87% was last valued at $8,087.14, down 3.2% on the day.
Tax day looms
After surging as much as 20% last week, many pundits now believe a medium-term low is in place, blaming the recent selloff on tax related selling—digital currency owners who made money in 2017 are having to convert crypto into fiat money to pay their taxes.
Tom Lee, who has a year-end price target of $25,000 for bitcoin, was one of the first to note this possible cause for bitcoins slide. While he remains optimistic, he notes it will need more than just tax selling relief for cryptocurrencies to push on.
“There are still substantial regulatory uncertainties that are curbing institutional appetite for crypto. Until greater clarity is received from the SEC, in particular, many potential investors are sidelined,” said Lee, managing partner at Fundstrat Global Advisors, in a note to clients Friday.