Bitcoin
$ 53,162
Ethereum
$ 3,441.1
XRP
$ 1.080

This is why the price of Bitcoin has dropped below $ 50,000

Source:

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.

He added:

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.

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