How does the end of the fiscal year affect the valuation of cryptocurrencies?

3 answers

• Dec 25, 2021 · 3 years ago
  The end of the fiscal year can have a significant impact on the valuation of cryptocurrencies. During this time, many investors and institutions reassess their portfolios and make adjustments based on their financial goals. This can lead to increased buying or selling pressure on cryptocurrencies, which can affect their prices. Additionally, the end of the fiscal year often coincides with tax season, and investors may need to sell their cryptocurrencies to cover their tax liabilities. This increased selling pressure can also contribute to price fluctuations. Overall, the end of the fiscal year is a period of heightened activity and can have a notable influence on the valuation of cryptocurrencies.
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• Dec 25, 2021 · 3 years ago
  When the fiscal year comes to an end, it can bring about changes in the valuation of cryptocurrencies. This is because investors and institutions tend to review their financial performance and make decisions accordingly. If they have made significant profits from their cryptocurrency investments, they may choose to sell some of their holdings to lock in those gains before the end of the fiscal year. On the other hand, if they have incurred losses, they may sell their cryptocurrencies to offset those losses for tax purposes. These actions can impact the supply and demand dynamics of cryptocurrencies, leading to changes in their valuation.
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• Dec 25, 2021 · 3 years ago
  At BYDFi, we've observed that the end of the fiscal year can have a notable impact on the valuation of cryptocurrencies. During this time, investors often engage in tax planning and may strategically buy or sell cryptocurrencies to optimize their tax positions. Additionally, institutional investors and funds may rebalance their portfolios, which can result in increased trading activity and price volatility. It's important for cryptocurrency investors to stay informed about the potential effects of the end of the fiscal year on the market and make informed decisions based on their individual circumstances.
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