Home Stock Bitcoin falls below $ 50,000 due to rising US tax concerns

Bitcoin falls below $ 50,000 due to rising US tax concerns


The price of bitcoin fell below the psychologically important $ 50,000 level on Friday, as worries about US tax hikes shifted to crypto, adding to the recent pressure on investments. instead.

Bitcoin price
BTCUSD,
-3.93%

last changed hands at $ 49,225, sliding almost 10% in 24 hours and levels not seen since early March, according to Coindesk. The losses have spread across other cryptocurrencies, with ether
ETHUSD,
-6.98%
,
on the ethereum network, which is also down around 10% in the same period, is trading at $ 2,219. XRP
XRPUSD,
-14.73%
,
pegged to Ripple, which has lost 21% in 24 hours, last trading at a new high of $ 1.00.

New losses for bitcoin represent a decline of around 24% from a recent peak of $ 64,829 for cryptocurrencies, meeting the widely accepted definition of a correction. Bitcoin fell sharply over the weekend, although the volatility of cryptocurrencies means a slide of more than 10% is not unusual. The fear of regulatory enhancement is central to last Sunday.

The loss of Friday happened after Lose 300 points for the Dow industry
DJIA,
-0.94%

after the media reported that President Joe Biden was mulling plans to nearly double the capital income tax on the wealthy.

“It is clear that Bitcoin is more sensitive to capital income tax threats than most ‘assets’ types. In my opinion, the regulatory threat, either directly in developed markets or indirectly through tax authorities, has always been the Achilles heel of cryptocurrencies, ”said Jeffrey Halley, market analyst at high at OANDA, told customers in a note.

Halley said the next bitcoin level he’s tracking is $ 42,000, “maybe this weekend, next week or maybe not.”

“Hopefully we’ll hear more ‘experts’ say that this is a sign that bitcoin will become a ‘maturing mainstream asset’ if it drops 10% by the end of this week, as we did when it raises or a cryptocurrency exchange chooses an IPO, “he said.

Some analysts have warning of a short-term decline in bitcoin as cryptocurrencies continue to track lower after hitting all-time highs above $ 64,000 following the direct listing of cryptocurrency platform Coinbase
COIN,
-5.92%
.

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