Bitcoin (BTC) falls below critical price support to hit one-month lows as the US tax return deadline approaches.
BTC USD down -0.90%, ETH USD down -1.82%
The leading cryptocurrency by market valuation dropped to $38.577 during the Asian hours, last observed on March 15.
Per analytics firm IntoTheBlock indicated that $40,000 was the important support level as significant buying activity occurred around that level in the past.
The recent decline indicates the cryptocurrency has deteriorated more than 17% since reaching nearly $48,000 three weeks ago.
The fall appears to emerge from tax-related selling and an uncertain macroeconomic environment. For American investors, the deadline to submit 2021 tax returns and pay tax is Monday, April 18, 2022.
In 2021, market players sold digital assets during the tax period between Jan.1 and April 15.
Jeff Anderson, CIO at the quantitative trading firm Folkvang trading, stated that tax-related selling had played a major role in recent weeks. But, it is challenging to ascertain how much the weakness has been due to the impending tax deadline.