The US President Joe Biden revealed a plan to increase the capital gains tax for wealthy Americans. And the comments immediately intensified the volatility of crypto-assets in the market. It led to a massive downfall of almost all major digital currencies.
“Total downfall in the crypto market occurred overnight” (Credit – Brandsynario)
A wave of selling cryptocurrency kept plunging the market value of Bitcoin. It already breached the extremely important $50,000 threshold mark. The most prominent crypto continues to fall in the market without coming to a halt.
Reports confirmed a spectacular fall of more than 15% within 24 hours. As it happens, the current BTC value should remain within $46,000 to $48,000. It’s the lowest point for bitcoin since March 2021.
Overall downfall counts about 26% from its peak $64,829 value on April 14. The threshold breach is likely to knock the investors’ confidence. Also, an extended downfall may require the top digital currency to check the correction territory.
The tax worries also triggered a downfall for noteworthy cryptos like ETH & XRP. In fact, Ether also fell more than 10% in the last 24 hours. Meanwhile, XRP keeps getting closer to a 20% loss in the period.
As per CoinMarketCap, the entire market lost more than $200BN crypto value in total.
“President Biden eyed on capital-gain tax for wealthy Americans” (Credit – BBC)
Biden is expecting to raise the tax by 43.4% to include surtax. It exclusively targets the Americans to possess a $1MM earning. And it’s likely to exceed the federal tax rate on anyone’s wage income.
However, there’s no clear indication of applying the rules to cryptocurrency. Not to mention, the IRS now views every cryptocurrency as an asset. And the fear managed to drive back the market overnight.
Bitcoin raised more than 70% in its market value within 2021 alone. Meanwhile, ether exceeds a superb 200% increase. Likewise, other major cryptocurrencies continued soaring in recent weeks.
Multiple market analysts predicted a downturn of cryptos following the bitcoin’s peak valuation. But nobody was expecting a sharp downward slide in a week. And the incident reveals the absolute uncertainty of digital currency valuation.