Currently, newer Bitcoin whales—those who have held the cryptocurrency for just over five months—would incur a 1% loss if they sold now. While older whales are slightly better off, they too are holding off on selling until prices improve.
Bitcoin prices dropped by $4,000 following heightened Middle East tensions on October 1. According to Ki Young Ju of CryptoQuant, large investors, or “whales,” are not yet making enough profits to sell their holdings.
Bitcoin Whales Hold Back: Low Profits and Geopolitical Risks Weigh on Price
Without increased buying activity from regular investors, Bitcoin could potentially drop below $54,000.
Ju suggests that Bitcoin prices could face further pressure in the short term due to low whale profits and geopolitical uncertainty.
Unlike the usual practice of taxing assets only when sold for a profit, this tax would apply even if Bitcoin holdings haven’t been sold.
Kamala Harris’s proposal to tax unrealized capital gains at 25% could heavily impact Bitcoin investors.
How Kamala Harris’s Proposed Tax on Unrealized Gains Could Impact Bitcoin Investors