The market plunged sharply on Friday as concerns over Biden’s new plan to raise more taxes on capital gains. Analysts believe that this plan was the main cause of the market collapse.
to the the report Reuters: Biden’s cabinet plans to change US tax laws with a bill. Among these changes is a nearly doubling of the tax on capital gains and bringing it to 39.6 percent. This amount is taken from people whose income is more than $ 1 million.
After the announcement, the price of Bitcoin fell sharply to $ 47,555. This is the first time in the last two months that the price of Bitcoin has fallen below $ 50,000. At the time, Bitcoin was down 4 percent to $ 49,667.
Ethereum and Ripple fell 3.5 percent and 6.7 percent, respectively. Dogecoin, a high-margin digital currency that has gained about 8,000 percent since the beginning of the year, fell 20 percent to $ 0.21.
Biden’s move has shaken financial markets sharply, prompting investors in stock markets and other risky assets to reconsider the profits they have made in recent months through supportive policies by the Federal Reserve and the US government.
Nick Spanos, founder of the New York Bitcoin Center, wrote that he predicts that Bitcoin will experience a further decline in the coming days:
With the high growth rate of bitcoin prices, holders of digital currencies that have made a profit in this way will be taxed.
Bitcoin has fallen 11.3 percent so far this week. This is the biggest weekly drop in the price of bitcoin since last month. However, since the beginning of this year, this digital currency has grown by 72%.
While some blame Biden and his controversial plan, others say the cut is temporary.
“Rupt Feltkamp, CEO of Cryptohopper,” says:
I do not think tax plans should have much of an impact on the future of bitcoin. Bitcoin has long been just moving up; It is natural to see a stabilization phase. Traders are currently only withdrawing their profits.
Other analysts, speaking on a long-term uptrend, believe the jump may take time again. “Traders have a chance to buy bitcoins on the floor,” said Don Guo, CEO of Broctagon Fintech.
Investors will find that lowering prices in the digital currency market is an opportunity to broaden their investment portfolio by using the average reduction and buying of coins.
The stock price of Quinn Base is currently trading in the range of $ 290. The exchange of shares of this exchange took place at the same time as the price of Bitcoin reached its new peak. Shortly afterwards, in the following days, the value of each share of Coin Bass fell by 25%.
“Neil Wilson, chief marketing analyst at Markets, said:
The offering of CoinBase shares has probably been the pinnacle of Bitcoin.