1) With the dramatic rise and then fall of the Nasdaq back in 2001, with similar timing (peak right around New Years Day [0]), and a similar amount of new and uninformed market participants (online day trading just beginning to become a thing), could some of the early 2001 market performance be due to a similar dynamic? Noob traders make bank in 2000, log in to H&R block, start doing their taxes, and then have an oh shit moment when they come to the question about "have you bought or sold any stocks this year?"
2) Stock trading happened through United States institutions. Much of crypto trading does not. Many people may have started with $1k in Binance or Bitfinex, and seen that go up by more than a multiple of 10. Many of those people, I feel, are likely to accidentally commit a felony this year by failing to report their foreign account holdings because they are similarly unaware of the consequences of having money outside their down the street bank. FBAR is a real thing, people face serious fines (at least up to 10k for any infringement, 10k plus half your offshore assets and potential jail time if willfully [1]).
1) With the dramatic rise and then fall of the Nasdaq back in 2001, with similar timing (peak right around New Years Day [0]), and a similar amount of new and uninformed market participants (online day trading just beginning to become a thing), could some of the early 2001 market performance be due to a similar dynamic? Noob traders make bank in 2000, log in to H&R block, start doing their taxes, and then have an oh shit moment when they come to the question about "have you bought or sold any stocks this year?"
2) Stock trading happened through United States institutions. Much of crypto trading does not. Many people may have started with $1k in Binance or Bitfinex, and seen that go up by more than a multiple of 10. Many of those people, I feel, are likely to accidentally commit a felony this year by failing to report their foreign account holdings because they are similarly unaware of the consequences of having money outside their down the street bank. FBAR is a real thing, people face serious fines (at least up to 10k for any infringement, 10k plus half your offshore assets and potential jail time if willfully [1]).
[0]http://futures.tradingcharts.com/historical/ND/2001/0/contin... [1]https://www.irs.gov/businesses/small-businesses-self-employe...