Unrealized Losses – Will the Long Game of Cryptocurrency Be BetterNovember 21, 2018
No need to panic about the price crash. The long game of cryptocurrency will be better. The current price drop has definitely triggered a panic among investors. Bear markets always follow a decent spring.
After the hard fork, there was a bit of momentum, where people tried to capitalize on the new opportunity triggered by Bit Cash. The market is going through the toughest days.
The current trend of almost all the digital assets are not positive and to add to the sentiment, the price of Bitcoin has breached the $4,500 line. There are investors who are betting high against the fall of Bitcoin.
The current scenario is set to bring in more regulation from the SEC. SECs are going to quickly come down on the crypto exchanges.
The Bitcoin are simply shedding several hundred billions in just a single day. They are the common topic in dinner tables for wrong reasons now. Once they were being widely spoken about for their value. Now people are discussing the Bitcoin with a lot of panic.
There are a lot of stop orders on the market after the price of the Bitcoin went down. There is a lot of sell off happening as well. Now, after the price drip, the logical support level has been set at $3,500, which sounds like all is gone for several investors.
Coeure stated that “Bitcoin is an extremely clever idea. And, that sadly, not every clever idea is a good idea.”
The crypto scenario is already a blood bath in itself. This is spreading to almost other cryptocurrencies too. The regulatory pressure is considered to be a major reason for the current sell off. Anything that looks like a security will come under SEC.
And investors are worried because they do not feel that there is going to be any incentive if they buy. The year is going to end in just 6 weeks. There are cryptocurrency investors who are making their tax plans.
Most of them are not feeling that it is a good time as they are planning to file their taxes.
The Tax Cuts and Job Acts of 2017 has taken aware the deduction applicable for investment interest and also for investment expenses. This means they will not be able to bring in investment expenses this year.
The overall cryptocurrency market has gone down and the majority of the investors are holding on to their coins; however, they are also holding on to the unrealized losses. The crypto losses can be used to offset the capital gains. For the losses to be realized, the positions should be sold.