Bitcoin has dropped to $ 48,000.
This is the first time that Bitcoin has fallen below $ 50,000 since March 7, 2021.
According to CoinGecko, Bitcoin has fallen by nearly 10% in the past 24 hours, and by 23% in the past seven days.
Other digital currencies are worse off.
The digital currency Ripple XRP is down 19.6% in the last 24 hours and 41% in the last week.
The UNI currency, after its recent rally, which coincided with the news about the launch of the Uniswap platform update towards the third version, fell by 17% to $ 31.31.
Mr. Charles Story, Head of Growth and Development at DeFi Phuture, told the source:
“There is a lot of new capital entering the market, some investors are still on the edge of a precipice and negative, unverified news could cause a lot of damage in the short term. This is what we see.
Bitcoin’s price drop today is roughly 33% away from its all-time high of $ 64,445, which the coin reached on April 14th, according to CoinGecko.
Reasons for Bitcoin’s decline:
One of the reasons Bitcoin’s price is declining is the mounting concerns surrounding a capital gains tax hike in the US.
Under US tax law, selling cryptocurrency is a taxable event, and US taxpayers must pay tax on any profits.
Meaning that taxes affect holders of short-term positions, and day traders more.
Although the crash wiped out $ 170 billion of the total market value of cryptocurrencies, some believe Biden’s tax proposals could benefit Bitcoin in the long run.
Anthony Trenchev, Co-Founder and Managing Partner, Nexo, told:
President Biden can provide a service to the crypto market by ordering market regulation and regulation, instead of the current ambiguity.
The best option for Bitcoin clients looking to manage their finances is to borrow against things you own or plan to purchase and avoid capital gains taxes.