The value of a number of cryptocurrencies such as bitcoin and ether plummeted after President of the United States (US) Joe Biden echoed plans to raise taxes for the rich.
The previous plan had sent Wall Street stocks slumping. The proof, at the close of trading Thursday (22/4) night, the three major indexes on Wall Street closed deep in the red zone. The Dow (INDU) fell 0.9%, or 321 points, the S&P 500 (SPX) and the Nasdaq Composite (COMP) also fell 0.9%.
Crypto Asset Prices Dropped
Now, the value of bitcoin has also dropped, even very sharply. Reporting from Reuters on Saturday (4/24/2021), bitcoin prices fell 3.44% to US $ 49,903.71. In fact, on April 14, 2021, the price of bitcoin broke a record at the level of US $ 64,526.
In addition, Ether, which is a rival to bitcoin, also slumped 10% to the level of US $ 2,140, a day after breaking a record of US $ 2,645.97.
Biden Raises Tax to 39.6%
Planned capital gains tax increase, aka the profits investors get from stock transactions, causes chaos during cryptocurrency trading in New York, and extends to the Asian session.
Keep in mind, Biden plans to double the tax on capital gains to 39.6% for people who earn more than US $ 1 million.
Even so, a number of crypto money traders are still optimistic that their value will recover.
“Funds from the western region started selling bitcoin aggressively after Biden’s tax plan. However, eventually things will turn around,” said BlockTower Capital chief trader and portfolio manager Avi Felman.
