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Cryptocurrency prices plunge over Biden Tax
- throwaway4good 5y agoI 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%.
- BitwiseFool 5y agoThe 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.
- throwaway4good 5y agoSo you are saying that the crypto market makes more sense than the stock market?
- BitwiseFool 5y agoThat isn't what I was trying to say or imply. Both markets seem pretty irrational and baffling to me.
- throwaway4good 5y agoSorry - 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.
- fighterpilot 5y agoWell there was also a rumor that Yellen is going to propose a large crypto tax. That impacted crypto only.
- harmeswoul12 5y agoThis 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.
- runeks 5y ago> 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.
- BitwiseFool 5y agoBuy low, sell never. That is the creed of HODL.
- roguson 5y agoI 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.