Bitcoin’s decline intensified on the 22nd, the sixth day of decline in the past seven days, dragged down by news that President Joe Biden plans to raise taxes on the wealthy. Reports indicate that Biden intends to nearly double the capital gains tax rate for the wealthy.
Bitcoin plunged 6.19 percent, or $3,402, to close at $51,593.44 at the end of the session, and fell 2.12 percent to $50,501 in early Asian trading on the 23rd.
Bitcoin has fallen more than 15% in the past week, dragged down by a fake news a few days ago. Twitter had previously tweeted from an anonymous account claiming the U.S. Treasury Department planned to crack down on cryptocurrency money laundering.
Matt Maley, chief market strategist at Miller Tabak+ Investments, said, “The biggest thing you need to worry about is that the underlying that’s up the most is the most vulnerable to market selling. This does not mean that the market will reverse the goods, 100 percent out of the investment parts, but some investors here hold a huge part, therefore, if a significant increase in capital gains tax, they may lose a lot of money.”
Under current regulations, U.S. investors who hold crypto coins for more than a year are required to pay capital gains tax when they sell. The digital asset space has soared 80 percent since last December. Bitcoin in particular has been the best performing asset in recent years, with investors who got in a year ago now achieving a payout of 625%, which would equate to 860% if the market were in April 2019.
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