- Hedge Fund Pantera Capital Reveals Companies Earned $1.4 Trillion From Cryptocurrency Earnings.
- Companies are now selling cryptocurrency capital gains to cover their taxes.
- A big risk swept the crypto market in response to the Russian military attack on Ukraine.
Hedge fund Pantera Capital revealed that $1.4 trillion in capital gains on cryptocurrencies were made in 2021. Cryptocurrencies were trading in the red as geopolitical tensions mounted, and investors were selling stocks. crypto earnings to cover taxes.
Pantera Capital Notes Spike in Crypto Capital Gains in 2021
The total crypto market capitalization plummeted after Russia invaded Ukraine. There was a pullback in the US stock market. Proponents noted a significant drop in Bitcoin price in response to mounting selling pressure.
Amid the crypto market bloodbath, hedge fund Pantera Capital noted that $1.4 trillion in cryptocurrency capital gains were made in 2021. Investors have recently sold cryptocurrencies for cover their tax bills.
Institutional investors are withdrawing funds from cryptocurrency gains and the crypto market, increasing the selling pressure on Bitcoin. Pantera Capital’s discovery is a catalyst for Bitcoin’s price decline and has fueled a bearish outlook among investors.
Analysts say the crypto market bloodbath was a big risk. Institutional investors quickly added Bitcoin and cryptocurrencies to their balance sheets in 2021. However, recent events have influenced retail traders’ outlook on Bitcoin.
Nigel Green, CEO of deVere Group, commented on the correlation of the crypto market with the stock market,
The correlation between crypto and stock markets has been quite strong over the past few months, both on inflation news and geopolitical matters.
FXStreet analysts assessed the Bitcoin price trend and noted that the bulls are desperate to find support in the ongoing downtrend. If the Bitcoin price trend does not reverse, the Bitcoin price could fall to $30,000. The asset fell below $40,000 and analysts predicted a 25% drop in Bitcoin price if the downtrend continues.
