There was a prediction made by Tom Lee, the Head of Research of Fundstrat Global Advisors, that Bitcoin could face a lot of pressure due to the approaching Tax Day.
The market value of Bitcoin could face a hit. It was at $135 billion by March end and went down to $115 billion during the first two weeks of the month of April. There was an expectation that the markets will see a lot of Bitcoin selling in order to pay up the taxes before April 17. The downward pressure that was attributed to tax loss selling is now a bygone.
Bitcoin has been seeing a downward trend from hitting its peak of $20,000 on December 17 last year. It has been making short-term recoveries over the past couple of months. It went down to $6,400 on February 6 and then rallied to $11,700 on February 20.
The tax month of April saw Bitcoin trade between $6,700 and $6,950 from April 9 to April 12. It saw a little bit of rally to trade at close to $9,000 on the Tax Day. Lee believes that Bitcoin has every potential to touch $20,000 by the middle of this year and can even hit $25,000 by the end of the year.