Bitcoin investors are saying amid reports of their losses that President Biden plans to raise the capital gains tax on the wealthiest Americans.
The price of volatile cryptocurrencies fell nearly 10 percent on Friday, well above the $ 49,000 mark, its lowest level since early March as the White House reportedly doubled rich people’s taxes on investments Was proposed
Bitcoin recently changed hands at $ 49,072.72, according to Coinbase – down 9.9 percent from a day earlier and reducing its total market capitalization to $ 917.1 billion – below the $ 1 trillion mark it first crossed in February .
Biden wants to raise the capital-gains tax to 39.6 percent for people earning at least $ 1 million. The plan, which is expected to be announced next week, will be a massive increase from the current tax rate of 20 percent. There will also be a 3.8 percent tax on investment income used to fund Obamacare, meaning the new top rate will be 43.4 percent.
For those earning $ 1 million in high-tax states, rates on capital gains can exceed 50 percent. For New Yorkers, the United States and federal capital gains rates can be as high as 52.22 percent. For California people, it may be 56.7 percent.
Before the tax news, bitcoin was on a roll. Digital Coin reached a record high of $ 64,895 on April 14, the day of the launch of Coinbase, the largest cryptocurrency exchange in the US, on Nasdaq. The rise of the digital currency comes in the form of COVID-era incentive checks that control investors’ wallets.
Jeffrey Haley, Senior Market Analyst at OANDA, Told Reuters The rise of that cryptocurrency may happen soon.
“Bitcoin led the South today, when President Biden indicated that he wanted to raise the capital gains tax in the US,” Haley said. “Now whether this happens or not, many bitcoin investors are probably sitting on some big capital gains if they stayed during the previous year.”
“I strongly believe that developed market regulation and / or taxation remain the Achilles heel of crypto markets,” he continued.
There were reports of tax hikes on Thursday, down 321 points from the Dow Jones Industrial Average, down 0.9 percent at 33,815.90. The S&P 500 index finished the day down 0.9 at 4,134.98, while the Take-Heavy Nasdaq Composite was down 0.9 percent at 13,818.41.
But others see the dip of bitcoin as a blip and part of the lifecycle of a stock.
“I don’t think Biden’s tax plans will have a big impact on Bitcoin,” CEO Rude Feltkamp at CryptoPer, an automated crypto trading bot, told Reuters. “Bitcoin has only gone for a long time, it is only natural to see a consolidation. Traders are only prohibiting wins. “
Either way, bitcoin is heading towards a loss of 15 percent a week, but it is still 65 percent after the start of 2021.
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