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Bitcoin Makes Gains As Tax Day Passes

April 21, 2018 at 15:35 by Matt Jackson

This week has seen Bitcoin post impressive gains, as the tax deadline in the USA passed. Some analysts have attributed the last two, difficult months, to the fact that investors were withdrawing to fiat in order to meet their obligations. Price has slipped a little on Saturday, having hit $9,000 resistance, but it has seen decent gains over the week. Bitcoin had fallen to prices below $6,500 on April 1, and while it is still under performing compared to a lot of alt coins, investors are hopeful that two positive weeks in a row could signal a turnaround in Bitcoin fortunes.

Bitcoin fellow below $9,000 on March 22, and only returned to briefly touch this price level at 08:00 GMT today. The cryptocurrency had previously reached a peak of just under $20,000 in December 2017 before starting its descent to current levels.

Tuesday was the original deadline for US citizens to file their taxes. However, the website crashed during the day, and the IRS extended the deadline until Wednesday. A lot of analysts had been waiting for tax deadline day to pass, in the belief that the digital currency would start a full rebound. Although prices have stalled a little, Bitcoin has shown, in the past, that once it starts a rally, it can be very difficult to stop.

Meanwhile, John Williams, who is expected to be the next head of the New York Fed, has said that Bitcoin fails the basic tests of what makes a currency. He pointed to the finite supply, which would prevent governments from being able to control currency and manage economies. He also stated that its volatility meant that it was almost impossible to use Bitcoin to buy products and pay for services. However, others disagree with this sentiment. Twitter CEO, Jack Dorsey, for example said that it could become the global single currency.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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