There were plenty of first time Bitcoin investors seen in the scene when the Bitcoin was doing very well last year. The younger generation had invested a lot on Bitcoin last year. It is now that they realize that there is a downside of making money on these one-off trades.
As the April tax filing date is approaching, the new investors are getting afraid of paying the taxes. This might be one of the reasons why many of the millennial investors are selling their Bitcoins below $8000.
The first time Bitcoin investors are the ones who are shocked by the huge taxes that accompany it. They made huge gains through Bitcoin trading last year, but they do not have enough of them in the cryptocurrency to pay the dues.
People who have traded in Bitcoin in 2017 saw it rise from just $997 at the start of the year to a year ending price of above $13000. These people are now facing a huge tax bill and are working out their payment plans.
There are many who are looking to sell off their cryptocurrency in order to save the taxes. The IRS treats Bitcoin and other cryptocurrencies as sir property and hence it is taxable.