The price of bitcoin declined below $7,000 on Monday as the deadline for the tax-filing in the United States approaches.
The third largest cryptocurrency by market cap traded as low as $6,628.91 on Monday morning, according to data from CoinDesk.
Over the past month, bitcoin shed more than 27% in market value. In fact, the cryptocurrency recorded the worst quarterly performance ever in the first quarter of 2018.Over the past four months, bitcoin’s value dropped over 50% from its price of $13,412.44 on January 1.
Some analysts believe that the current self-off is primarily driven by the approaching tax-filing deadline this month. Investors are selling bitcoin to pay their tax obligations.
Last week, Thomas Lee, the head of research at Fundstrat Global Advisors, estimated that cryptocurrency investors in the U.S. owe $25 billion in capital gains taxes.
In his report, Lee said, “This is a massive outflow from crypto to USD and historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value.”
