Bitcoin posted sharp losses on concern that US President Joe Biden plans to raise capital gains taxes.
Bitcoin and other cryptocurrencies posted sharp losses on Friday, on concern that US 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 US 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.
Read more at: tribune.com.pk
