Bitcoin strengthened in the first half of the week and the middle, having managed to test the highs of early January above $45,800. The situation changed on Th
January 29, 2021
After notching jaw-dropping returns in 2020, Bitcoin is scuffling to start 2021, but that may be more a case of seasonality than weak underlying fundamentals. The largest digital currency could be in stronger form several months from now.
Some crypto market experts believe one reason Bitcoin is slumping to start the new year is tax selling, Many investors that made profits on Bitcoin waited until January to sell to avoid paying taxes on those gains for the 2020 tax year.
By selling this month, those investors won’t have to pay Uncle Sam his taxes until they file for the 2021 tax year, which will be sometime in early 2022.