The crypto boom that drove the crypto market capitalization to more than $800 billion at the end of 2017 has an ugly shadow. A piece of research by Fundstrat Global Advisers estimates that the crypto-fever pitch has resulted in US tax liabilities to the tune of $25 billion, which has placed some extra pressure on ‘hodlers’ to sell off their assets.

The Fundstrat report explained that investors could see crypto markets continue to drop as crypto users prepare for April 15, the deadline for filing taxes in the US this year.

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In a Reuters report, Fundstrat co-founder and head of research Thomas Lee said that “we believe selling pressures (in crypto) have been amplified by capital gains tax-related selling this year.”

The $25 billion figure is based on 20-percent of the $168 billion in capital gains that were estimated to have been earned in 2017 from crypto.

Exchanges also expected to have to pay – big time

Fundstrat also expects that cryptocurrency exchanges will have massive tax bills on the 15th. Some exchanges, including Coinbase, reported net profits of more than $1 billion last year. Exchanges are also expected to sell off some of their crypto assets in order to make ends meet.

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Despite Fundstrat’s bearish predictions in the run-up to tax day, the report is bullish on Bitcoin and other cryptocurrencies once tax day has passed, pointing to a predicted $20,000 BTC valuation by mid-2018 and $25,000 by year’s end.

Extremely interesting graphic from @fundstrat that illustrates why HODLing is king. pic.twitter.com/6LIOBneS4F — Eric Meltzer (@wheatpond) March 29, 2018

The news is a mixed bag for Bitcoin holders, who have already been through a rather rough few months. After Bitcoin peaked around $20,000 in mid-December of 2017, the coin has shed more than half its value. At press time, a single BTC was trading for $6,726; its market cap was roughly $114 billion, down more than $200 billion from its December peak of $327 billion.