What happened to the bitcoin during last week's massive sell off?

Bitcoin (BTC) has experienced a resurgence in the past 24 hours following a significant sell-off last week. Last week, the world’s most valuable cryptocurrency saw a significant drop from well above AU$60,000 to a low of AU$47,549 on April 23.

The week ended April 23 saw a dip in the markets, including the crypto market, amid reports US President Joe Biden was planning to double the rate of capital gains tax for the wealthiest Americans to 43.4% It was the first time, since the beginning of March, that the crypto had sunk below AU$50,000, with the entire crypto market shedding over AU$250 billion in a single day. The drop led to panic as investors were left unsure as to how low the coin would go.

Moreover, there have been claims that Bitcoin is a poor method of payment for items such as groceries as it can take up to one hour to receive confirmation of purchase. Such is the volatility of Bitcoin’s price that, within that hour, the price of Bitcoin could potentially drop significantly, which would leave the retailer out of pocket.

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