20:36
Crypto: Bitcoin, Ether, XRP, Dogecoin Drop Compared To Biden's Tax Plans

Bitcoin and other cryptocurrencies fell sharply on Friday amid fears that US President Joe Biden's plan to raise capital gains taxes will limit investment in digital assets.

News reports on Thursday said the Biden administration is planning a number of proposed changes to the US tax code, including a plan to nearly double taxes on capital gains to 39.6 percent for people earning more than $ 1 million.


Bitcoin, the largest and most popular cryptocurrency, fell to $ 47,555, dropping below $ 50,000 for the first time since early March. Last time it fell 4% to $ 49,667.

Smaller rivals Ether and XRP fell 3.5 percent and 6.7 percent, respectively, while Dogecoin, which was created as a joke to early adopters of the cryptocurrency and which rose roughly 8,000 percent this year prior to this latest setback, fell by 20 percent to $ 0.21, according to data from the price and data tracker CoinGecko.

The tax plans shook the markets, prompting investors to take profits in stocks and other risky assets that rallied significantly in hopes of a lasting economic recovery.

“With the high rate of growth in the price of bitcoin, cryptocurrency holders who have accumulated profits will be taxed,” said Nick Spanos, founder of Bitcoin Center NYC. He sees bitcoin falling further in the coming days.


Bitcoin fell 11.3% in a week, the worst weekly reading since late February. However, on an annualized basis, it is still up 72 percent.

But while social media reports surfaced that the plan was damaging cryptocurrencies and individual investors complained of losses, some traders and analysts said the decline was likely to be temporary.

“I don't think Biden's tax plans will have a big impact on Bitcoin,” said Ruud Feltkamp, ​​CEO of Cryptohopper, an automated trading bot for cryptocurrency. “Bitcoin has only grown for a long time, and it’s natural that one can see consolidation. Traders are just cashing in on the winnings. "

Others also remained optimistic about Bitcoin's long-term outlook, but noted that it could be a while before prices start to rise again.

“Investors will see the fall in prices in the cryptocurrency market as an opportunity to expand their portfolio by averaging their investment costs and buying new altcoins,” said Don Guo, CEO of Broctagon Fintech Group. He added that investors will view Bitcoin as an opportunity to buy cryptocurrency at a lower price.

Shares of cryptocurrency exchange Coinbase surged 0.5 percent to $ 294.86 in US trading in the afternoon. As a result of the public offering of its shares on April 14, bitcoin prices rose to $ 65,000 and fell 25 percent in the following days.

Shares of cryptocurrency exchange Coinbase surged 0.5 percent to $ 294.86 in US trading in the afternoon. As a result of the public offering of its shares on April 14, bitcoin prices rose to $ 65,000 and fell 25 percent in the following days.


“A listing on Coinbase - the moment the poacher turned into a huntsman - could have been the high point for Bitcoin,” said Neil Wilson, principal market analyst at Markets.com.

Source: aljazeera.com

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Category: News | Views: 55 | Added by: 4zvezda | Tags: #Bitcoin #Bitcoin markets #BTC | Rating: 0.0/0
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