Home Finance Bitcoin crisis: Value sinks below $50,000 as Joe Biden tax plan sparks...

Bitcoin crisis: Value sinks below $50,000 as Joe Biden tax plan sparks panic

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The selloff came after reports that the Biden administration was planning proposed changes to the US tax code. This could include a plan to nearly double taxes on capital gains to 39.6 percent for people earning more than $1 million.

Bitcoin, the biggest and most popular cryptocurrency , slumped 7% to $48,176, falling below the $50,000 mark for the first time since early-March, while smaller rivals Ether and XRP fell around 10%.

The tax plans jolted markets, prompting investors to book profits in stocks and other risk assets, which have rallied massively on hopes of a solid economic recovery. Levies on investment gains were said to be in line for record increases.

Bitcoin is on track for a 15% loss on the week, though it is still up 65% since the start of the year. Ether dropped more than 10% on the day to as low as $2,107, a day after climbing to a record $2,645.97.

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