Bitcoin Dips Below $ 50,000 And Losses Increase After Biden's New Tax Offer

Bitcoin has always faced a string of bad news since it hit all-time highs earlier this month. Bitcoin prices fell earlier last week due to the shutdown of crypto miners in Sianjiang due to power outages, triggering a record $ 10 billion in term liquidations. Now, fears about the tax rise President Biden is proposing on capital gains and possible crypto regulations are driving Bitcoin even lower. While Bitcoin fell to $ 47,700 or 11% during the day, other major cryptocurrencies Ethereum (ETH) and Binance Coin (BNB) suffered similar losses. The NASDAQ index recorded a much more modest loss of -0.94%. Bitcoin (BTC / USD) fell in a short-term downtrend and dropped around 18% within a week. Source: Tradingview.com According to ByBit figures, the crypto futures market has seen $ 3.95 billion liquidation in the last 24 hours. Bitcoin's total market cap also fell below $ 1 trillion, resulting in a loss of $ 300 billion within hours. Bitcoin falling below the $ 50,000 support level could be a sign that the bearish sentiment is on the rise – further straightening the cryptocurrency. Explanation of Recent Bitcoin Price Action The weekend sale has worsened with the news of President Joe Biden's latest tax reform. According to Reuters, Biden called for an increase in the highest tax rate from 2.6% to 39.6% from 37%. More importantly, he proposed to almost double the capital gains taxes to 39.6% for individuals earning more than $ 1 million. (Current tax rates are 20% for long-term owners in the $ 450,000 or more tax bracket.) In the United States, the Internal Revenue Service (IRS) actively classifies cryptocurrencies – meaning taxpayers must report all crypto transactions and profits. . Jeffrey Halley, Senior Market Analyst at Oanda, told the Wall Street Journal: “It is clear that Bitcoin is more susceptible to capital gain tax threats than most 'asset classes'. Regulation threat directly in developed markets Read more

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