Bitcoin slumps to 48-day low on tax hike angst

The value of Bitcoin, the world’s most valued cryptocurrency, fell below the US$50,000-mark, on concerns of new regulations on increasing capital gains tax by the Biden administration in the US.

At the time of filing this story, Bitcoin (BTC) had fallen 9.59% in the past 24 hours and was trading at US$49,079.77 – its lowest level in 48 days. The seventh fall in eight days was triggered after the reports surfaced that the US President Joe Biden was mooting to double the capital-gains tax for the richer sections of the society.

The year-to-date returns on the digital asset have now come down 71.59% in the past week. Also, the market value of the Bitcoin stood at US$916.39 billion – way below the US$1 trillion it had touched earlier this year.

The tax scare did not only spook off bitcoin investors, but also other digital currencies – with losses running between 0.01% to 25%, according to data available with Coindesk.

Also Read: Why are cryptocurrencies tumbling after stellar run last week?

The sell-off scare in the crypto-assets was triggered after shares across the world witnessing heavy selling pressure. All the major indices in the US – Dow 30, S&P 500 and NASDAQ – closed down by over 95 bps. Asian markets also felt the heat of proposed tax, as Japan’s Nikkei225 tanked by 76 bps, while ASX200 was down 16 bps.

Bitcoin, of late, has become quite popular, despite many policymakers expressing reservations of the digital currency. In fact, earlier this month, Coinbase became the world’s first exchange to get listed.

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