Cryptocurrency prices plunge over Biden Tax
reuters.comThis announcement caused panic throughout the crypto space. A lot of people resorted to selling their bags to buy more at a lower price. This resulted in a red market throughout the day.
> A lot of people resorted to selling their bags to buy more at a lower price.
Sounds like a sensible strategy.
Although I prefer the “buying and then selling at a higher price”-approach.
Buy low, sell never. That is the creed of HODL.
I totally agree with this creed. No matter what happens in the market, we should just hold. It is the most effective strategy in the long run.
I dunno why crypto dropped lately but if it was due to potentially increased capital gains taxes then stock markets would have dropped as well.
S&P500 is up 0.5%.
The markets did dip yesterday on the news, but to be honest the Stock Market makes no sense these days.
An important thing to consider is that there are different tax implications between Stocks (Securities) and Cryptocurrencies (Property). In crypto it makes sense to sell some coins, lock in a lower capital gains rate, and then buy right back in. That advantage isn't there for stocks. There are wash sale rules and plenty of other little profit calculation rules that apply to stocks.
So you are saying that the crypto market makes more sense than the stock market?
That isn't what I was trying to say or imply. Both markets seem pretty irrational and baffling to me.
Sorry - I should have added a smiley.
Journalists always seem to write these articles where they try to explain a broad market move with a specific piece of news.
In general I think they are mistaken. The market moves on its own. Had the annoucement of capital gains market happened 2 months ago when there was really strong upward momentum in crypto, then I think it would have been completely ignored.
Well there was also a rumor that Yellen is going to propose a large crypto tax. That impacted crypto only.