Bitcoin prices are creeping up just in time for April’s tax deadline in the US.
Selling pressure seems to have alleviated as prices rose 1.69 percent today.
As of 4pm, bitcoin was trading at $8,100.38.
Managing to hover around the $8,000 mark is a huge positive for the currency that has suffered a terrible 2018 so far.
Could BTC be about to skyrocket?
The bump in price on tax deadline day is welcome news for traders.
Today, April 17, is the last day Americans have to file their taxes.
The cryptocurrency market has been suffering in the first quarter of 2018, losing more than 50 percent of its entire market cap in three months.
Traders have been wary of continued threats of regulation from Eastern countries, further hacks on wallets and speculation the bubble has finally burst.
A strong end to 2017 quickly turned into a dreadful 2018 and the market has struggled ever since.
Experts expected April’s tax deadline would force traders to sell assets to pay capital gains tax, driving prices down significantly.
But the pressure seems to have been lifted, as prices push back up.
Today is the last day for Americans to file their taxes, with many traders already completing the task, negating much of the potential damage to the price in the last 24 hours.
The sell-off was expected to decimate bitcoin prices before supposedly pushing them back up as investors enter a new tax season.
However, it is positive that BTC held above $8,000 during the supposed sell-off.
Bitcoin managed to push its market cap up by $5 billion throughout Tuesday’s trading.
Crypto-traders predict BTC could be on the rise.
Pantera Capital, a San Francisco-based investment firm focused on blockchain technologies, suggested Bitcoin’s worst days are behind it.
CEO, Dan Morehead, wrote on Medium: “For those who are new to Pantera who might think a fund manager like Pantera would always be saying ‘Today’s a great day to get long.
“I rarely have such strong conviction on timing. A wall of institutional money will drive the markets much higher.”
In the mid-term, Wall Street analyst and Fundstrat founder, Tom Lee, stated that the bitcoin price will likely achieve $25,000 by the end of 2018, as it rebounds from its correction and achieves a new all-time high.
Mr Lee said: “We still feel pretty confident that bitcoin is a great risk-reward and we think it could reach $25,000 by the end of the year.”