Bitcoin and other cryptocurrencies have returned to the spotlight again, after experiencing a sharp rise following Donald Trump's election.
Then it fell significantly before receiving a new boost when the president revealed some details regarding a U.S. reserve proposal for cryptocurrencies.
The risks associated with extreme market volatility are well-known, and investors should be aware that they could lose everything before entering this field.
But this is not the only risk to pay attention to; even if you make profits from cryptocurrencies, you may face a tax burden that threatens your gains. Glassnode analytics indicate that a wave of short-term Bitcoin holder capitulation has caused strong downward pressure on the digital currency, leading to a sharp decline in its price.
According to the report, Bitcoin holders started to dispose of their coins at a loss, reminiscent of previous downturn scenarios in the crypto markets.$BTC
