Share this article
Pantera Capital Says Some Crypto Selling Pressure Has Been Tax Related
The hedge fund manager says $1.4 trillion of cryptocurrency capital gains were made last year.
By Will Canny
Updated May 11, 2023, 3:22 p.m. Published Feb 24, 2022, 12:26 p.m.
Some of the recent selling pressure in cryptocurrencies is due to unanticipated tax positions, hedge fund Pantera Capital said in its February blockchain letter. Tax day, April 18 in the U.S. this year, can influence crypto prices, it said.
Some $1.4 trillion of cryptocurrency capital gains were created last year, the fund said, adding that meeting the resulting tax bill could have caused a "decent chunk" of the recent sales.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The money manager noted that after previous big run-ups – in 2013, 2017 and 2020 – bitcoin peaked 35 days before tax day, and then fell as investors sold assets to cover taxes accrued. Cryptocurrency prices tend to fall leading up to tax day, it added, a pattern that's likely to be seen this year, too, after 2021's rally.
"A lot of crypto traders are new to investing," according to the letter. "You can imagine a person buying as much bitcoin as they can. Sometime later they decide to swap it for ether. And then their tax preparer tells them they owe 34% of the gains in taxes. ... Since the investor is 'all-in' on crypto, the only way to raise cash for the tax bill is to sell some crypto," the fund said.
A lack of guidance on everything from staking rewards to non-fungible tokens (NFT) means there's a certain amount of guesswork involved in tax filings.
In 2013 Pantera launched the first cryptocurrency fund in the U.S. It launched the first blockchain-only dedicated venture capital fund in the same year. The firm was founded by Dan Morehead in 2003. It currently has $4.6 billion in assets under management and has been involved in 95 venture investments.
Read more: 4 Crypto Tax Myths You Need to Know
CORRECTION (Feb. 24, 12:52 UTC): Corrects figure on capital gains to $1.4 trillion throughout.
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Morgan Stanley eyes the spot bitcoin ETF market
Wall Street heavyweight files for bitcoin trust amid rising institutional demand.
What to know:
- Morgan Stanley filed a Form S-1 on January 6, 2026, seeking approval for a spot bitcoin exchange traded fund that would hold bitcoin directly and trade on a US exchange.
- The move highlights growing institutional confidence in regulated bitcoin products.
Top Stories
