Bitcoin stumbles below $50,000 after news on Biden’s tax hike proposal

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Bitcoin stumbles below $50,000 after news on Biden’s tax hike proposal

Bitcoin’s challenge to hold forth on its latest round of Apollonian rally came a cropper on Friday as the world’s largest crypto asset which had shelved a record $2 trillion market valuation a week earlier, lost its bearings after market participants went in to a tailspin over concerns that the US President Joe Biden’s proposal to nearly double up taxations for wealthy American individuals would curb out investments in digital assets.

In point of fact, a media headline released earlier on Thursday had unveiled that the US President Joe Biden was planning to announce a tax hike for wealthy Americans earning more than $1 million as early as next week, which in effect would witness a taxation over 43 per cent in capital gains with millionaires in New York and California might require to lay off more than 50 per cent of their earnings on investments, eventually sending a shockwave into global equity markets which appeared to have spread to the digital assets on Friday.

Bitcoin tumbles after news on Biden’s tax hike on wealthy American individuals

Citing statistics, bitcoin, the original cryptocurrency, was last trading 4 per cent down to $49,667 on late-afternoon US trading hours after being tumbled to a session-low of $47,555 earlier in the day, marking off a below $50,000-level for first time in roughly one month and a half.

Alongside bitcoin, the digital asset’s smaller peers such as Ethereum foundered 3.5 per cent and Ripple shed 6.7 per cent, while dogecoin, which was formed as a joke from early crypto adopters and surged more than 8,000 per cent this year thus far, shrugged off 20 per cent to $0.21.

Meanwhile, addressing to further downside momentum of crypto assets over upcoming weeks, a founder at Bitcoin Centre in New York City, Nick Spanos said, “With a high growth rate in the bitcoin price, crypto holders that have accrued gains will be subjected to this tax increment”.

Nevertheless, despite an 11.3 per cent loss in the week, Bitcoin’s worst weekly performance since late-February, the world’s largest digital asset has still been up by 72 per cent in the year.