Bitcoin crashed Friday, losing 25% of its value in a 24-hour period.
As we wrote previously, the case that the Republican repatriation tax holiday would cause a very strong dollar and weak gold/bitcoin was questionable. Our reasons to be skeptical of the strong dollar case were the following: First, the window for companies to repatriate is 8 years, 4x the length of the tax holiday the Bush Administration enacted in 2004. Second, the rate at which companies can repatriate is much higher in the new tax holiday than it was in 2004 (the new rate is 15.5% for liquid assets and 8% for illiquid assets, whereas the Bush administration set the rate at 5.25%).
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