Cryptocurrency falls over concerns regarding Biden’s tax plan
Over the concerns of President Biden increasing Capital gain, which will curb the investment in the digital assets, the cryptocurrency, such as Bitcoins and others, showed a sharp loss on Friday.
Thursday’s news reports that Biden’s administration is planning to increase the capital gain tax by nearly double for all those earning more than $1 million.
Bitcoin, which is considered the biggest and most popular, slumped to $47,555. It is the first time since early March that the cryptocurrency went below $50,000.
Ether and XRP fell by 3.5% and 6.7% respectively while Dogecoin, which has surged of 8000% this year was down by 20% at $0.21, according to price and data tracker CoinGecko.
Nick Spanos, founder of Bitcoins stated that “With a high growth rate in bitcoin price, crypto holders that have accrued gains are subjected to this tax increment.” He expects the value to drop some more n the coming days.
While the social media was lit up with post about crypto losses and losses to private investors, some trader and analyst believe that the drop is likely to be temporary.
“I don’t think Biden’s taxes plan will have a big impact on bitcoin,” said Ruud Feltkamp, CEO at automated crypto trading bot Cryptohopper. Other also remained positive with bitcoins to rise again, though it may take some time.
“investors will see the price drop across the crypto market as an opportunity to widen their portfolio by averaging up their investment outlay and buying new altcoins,” said Don Gou, CEO at Broctagon Fintech Group.
