As the U.S. tax year approaches the end, 2020 appears to have been very fruitful for those who bought in to BTC and ETH when they were trading much lower. But what happens next?
Given the price fluctuations in trading over time it wouldn't be a big surprise to see a significant correction in the coming days or weeks or even months.
Some do consider that the mass influx of institutional funds in the BTC trading markets might be a reason for stabilization. Some consider these investors to be creating a bubble. I doubt that anyone can effectively predict the outcome of what will happen. All certainly can predict what might happen!
In any case, Institutions do not have any incentive to cash out gains prior to the end of this tax season. Cashing out generates tax liability, while invested gains may still be reflected as financial growth without liquidating those investments. Otherwise cashing out on a loss would benefit an institution by reducing tax liability, so there lacks an incentive for a dump of the recently accumulated BTC.
Manipulated? Speculated? Will it matter in the end?
What are the other perspectives concerning a possible institutional dump?
