Bitcoin extends post-Tax Day rebound to $9,000

Bitcoin rebounded above $9,000 over the weekend as the cryptocurrency extended post-Tax Day gains.

The digital currency traded near $8,878 as of 4:28 p.m. ET Monday, up more than $950 since last week, according to CoinDesk. Bitcoin has fallen more than 30 percent this year, and pundits blamed much of that price pressure on U.S. tax obligations.

Tom Lee, co-founder and head of research at Fundstrat Global Advisors, estimated U.S. households owed $25 billion in taxes on their cryptocurrency holdings after bitcoin’s rise to near $20,000 in 2017. The Internal Revenue Service views bitcoin and other cryptocurrencies as property, meaning profits from transactions are subject to capital gains tax.

 Lee, the only major Wall Street strategist to issue bitcoin price targets, predicted bitcoin would recover after U.S. investors submitted their taxes and has a $20,000 price target for this year.
A woman touches an ATM machine for digital currency Bitcoin in Hong Kong on December 18, 2017.

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