Bitcoin falls below $ 50,000 due to US President

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Bitcoin fell sharply on the stock exchange. Its value fell below $ 50,000 for the first time since March 2021. The reason for this is the plans of US President Joe Biden.

According to Business Insider, the cryptocurrency market has come under attack after reports that the US President has proposed to Congress to raise taxes for the richest Americans and large corporations. For example, they intend to increase the tax on investment capital gains almost doubled to 43.4%. As conceived by Biden, this will implement the plan to support ordinary American families.

The cryptocurrency market reacted sharply to Biden’s statement. As a result, bitcoin prices have been falling for the seventh day in a row. In the last 24 hours alone, the most popular digital currency has lost 5% in price, and in a week it has dropped by 17%. One coin has dropped more than $ 13,000 since April 12, when it was asked for $ 63,520, and is now worth $ 49,130.

Following bitcoin, many other cryptocurrencies also went down. According to analysts, in recent days, the total capitalization of the cryptocurrency market has collapsed by $ 260 billion. So, Etherium lost 7% in price to $ 2,220, Dogecoin fell 17% to $ 0.17, and XRP – by 8%.

It is worth noting that in the US, cryptocurrency is taxed as property, not currency. The IRS requires Americans who invest in the digital market to disclose all cryptocurrency transactions on tax returns if they have received, sold, traded, or otherwise benefited from the digital currency.

Analysts believe that Bitcoin, like other cryptocurrencies, is more sensitive to changes in taxation than most other assets. And if the price of bitcoin in the near future cannot rise above the level of 60 thousand dollars, then it is threatened with a further fall. Recently, Scott Minerd, one of the leaders of the investment fund Guggenheim Partners, said that after a record growth, bitcoin will decline and prices will fall to $ 20,000 or $ 30,000 per coin.

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