Bitcoin tumbles below $50,000, other cryptos sink over Biden tax plans

The exchange rates and logos of Bitcoin (BTH), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) are seen on the display of a cryptocurrency ATM of blockchain payment service provider Vaerdex at the headquarters of Swiss Falcon Private Bank in Zurich, Switzerland May 29, 2019. REUTERS/Arnd Wiegmann
Bitcoin and other cryptocurrencies posted sharp losses on Friday, onconcern that U.S. President Joe Biden’s plan to raise capital gains taxes will curb investments in digital assets.

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

Bitcoin, the biggest and most popular cryptocurrency , slumped to $47,555, falling below the $50,000 mark for the first time since early March. It was last down 4% at $49,667.

Smaller rivals Ether and XRP fell 3.5% and 6.7%, respectively, while dogecoin, created as a joke for early crypto adopters and which had surged about 8,000% this year prior to this latest setback, was down 20% at $0.21, according to price and data tracker CoinGecko.
The tax plans jolted markets, prompting investors to book profits in stocks and other risk assets, which have rallied massively on hopes of a solid economic recovery.

"With a high growth rate in the bitcoin price, crypto holders that have accrued gains will be subjected to this tax increment," said Nick Spanos, founder at Bitcoin Center NYC. He sees bitcoin dropping further in the coming days.
Bitcoin is on track for an 11.3% loss on the week, its worst weekly showing since late February. On the year, however, it was still up 72%.

But while social media lit up with posts about the plan hurting cryptocurrencies, and individual investors complaining about losses, some traders and analysts said declines are likely to be temporary.

"I don't think Biden's taxes plans will have a big impact on bitcoin," said Ruud Feltkamp, CEO at automated crypto trading bot Cryptohopper. "Bitcoin has only gone up for a long time, it is only natural to see a consolidation. Traders are simply cashing in on winnings."

Others also remained bullish on bitcoin's long term prospects, but noted it might take time before prices start increasing again.

"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 Guo, chief executive officer at Broctagon Fintech Group. He added that for bitcoin, investors will see it as an opportunity to buy bitcoin at a lower price.

Shares of cryptocurrency exchange Coinbase (COIN.O) were up 0.5% at $294.86 in early afternoon U.S. trading. The public floatation of its shares on April 14 had seen bitcoin prices rise to $65,000, before pulling back 25% in the following days.

"The Coinbase listing – the ultimate poacher-turned-gamekeeper moment - might have been the high watermark for bitcoin," said Neil Wilson, chief market analyst at Markets.com.
News Source: Reuters

Category and Tags
Add a comment
bitcoin wowwww
http://www.etmgo.com/
Moto G9 Play Case Cover & Accessories For Sale - OZ CHEAP DEALS

Motorola Moto G9 Play Clear Shockproof Heavy Duty Case, Wallet Leather Flip Cover, Tempered Glass Screen Protector, Charging Cable, Adapter & Accessories.

https://www.ozcheapdeals.com.au/product-category/motorola/moto-g9-play-case-cover-accessories/
More stories by
Top 10 Multinational Companies in Bangladesh

A multinational company is a business that operates in many different countries at the same time. In other words, it’s a company that has business activities in more than one country. From that perspective in Bangladesh, we can see so many multinat

These are the 5 Countries in the world without any Airport

Below mentioned are five independent states in the world that do not have airports, but there is at least one heliport, and the list is all small European countries - Andorra, Liechtenstein, Monaco, San Marino, and Vatican City.Andorra: Although

What is Lead Time ?

lead time is a time given by the manufacturer. Most buyers can be fixed up lead time. So now we go for what is lead time, it is a time period to get the post products or manufactured products. I am giving an example which will make a more clear conce

Best Motivational Quotes for Entrepreneurs and Business

1.) My son is now an ‘entrepreneur’. That’s what you’re called when you don’t have a job. – Ted Turner 2.) Leadership is a potent combination of strategy and character. But if you must be without one, be without the strategy. –Norm

Huawei's Own 0perating System 'Harmony OS' is Coming

Chinese brand Huawei is updating its own operating system. The BBC reports that users in the Asia region will be able to use the HarmonyOS operating system. Huawei was in turmoil after the United States read Donald T...

Follow Business Habit on Facebook, Twitter