{"id":35,"date":"2021-04-24T21:21:32","date_gmt":"2021-04-24T21:21:32","guid":{"rendered":"http:\/\/cryptonewcenter.com\/?p=35"},"modified":"2021-04-24T22:16:09","modified_gmt":"2021-04-24T22:16:09","slug":"bidens-tax-plan-prompts-crypto-sell-off-forcing-bitcoin-below-50k-support-line","status":"publish","type":"post","link":"https:\/\/cryptonewcenter.com\/?p=35","title":{"rendered":"Biden\u2019s tax plan prompts crypto sell-off, forcing bitcoin below $50k support line"},"content":{"rendered":"\n<h2>The $50,000 mark is viewed as a key support threshold for bitcoin reaching higher prices<\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/images.fnlondon.com\/im-329074\/?width=749&amp;height=499\" alt=\"\" title=\"The sell-off occurred following reports of US President Joe Biden's comments around the launch of...\"\/><figcaption>The sell-off occurred following reports of US President Joe Biden&#8217;s comments around the launch of capital gains tax reform that would affect the country&#8217;s ultra-wealthy&nbsp;&nbsp;Getty Images<\/figcaption><\/figure>\n\n\n\n<p>By&nbsp;Emily Nicolle<br>Friday April 23, 2021 8:22 am<\/p>\n\n\n\n<ul><li><\/li><\/ul>\n\n\n\n<p>Cryptocurrency prices have fallen across the board, ending a recent rally for ether and pushing bitcoin below the $50,000 mark.<\/p>\n\n\n\n<p>Bitcoin has fallen more than 10.4% in the last 24 hours to $48,770, while ether dropped 11.6% to $2,194 and XRP more than 20% to $1.04. Prices are as of 8am BST on 23 April, according to data from Luxembourg-based exchange Bitstamp.<\/p>\n\n\n\n<p>The $50,000 mark is viewed as a key support threshold for bitcoin reaching higher prices, meaning its fall below this point could knock investor confidence and push the cryptocurrency into correction territory.<\/p>\n\n\n\n<p><strong>READ<\/strong>&nbsp;&nbsp;<a href=\"https:\/\/www.fnlondon.com\/articles\/amundi-warns-bitcoin-in-for-brutal-price-correction-as-regulation-hits-sector-20210324\" target=\"_blank\" rel=\"noreferrer noopener\">Amundi warns bitcoin in for \u2018brutal\u2019 price correction as regulation hits<\/a><\/p>\n\n\n\n<p>The sell-off occurred following reports of US President Joe Biden\u2019s comments around the launch of capital gains tax reform that would affect the country\u2019s ultra-wealthy far and wide.&nbsp;The White House is planning to nearly double CGT for those with earnings of $1m or more, taking the rate to 39.6%,&nbsp;<em>Bloomberg<\/em>&nbsp;reported.<\/p>\n\n\n\n<p>Bitcoin still represents a major gain for anyone who invested this year, having risen more than 67% year to date as of 23 April. At its all-time high of roughly $64,500 on 14 April, the cryptocurrency had more than doubled its value since the start of 2021.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>\u201cIt is clear that bitcoin is more sensitive to capital gains tax threats than most \u2018asset\u2019 classes\u201d<\/p><\/blockquote>\n\n\n\n<p>Meanwhile, ether reached all-time highs only a day earlier as confidence poured into the digital asset while bitcoin faltered. Analysts predicted that it may be a sign ether is starting to break out of bitcoin\u2019s shadow, though&nbsp;<a href=\"https:\/\/www.fnlondon.com\/articles\/dark-side-of-nfts-why-collectable-digital-art-may-challenge-investors-esg-targets-20210420\" target=\"_blank\" rel=\"noreferrer noopener\">upgrade issues<\/a>&nbsp;with its underlying Ethereum network remain.<\/p>\n\n\n\n<p><strong>READ<\/strong>&nbsp;&nbsp;<a href=\"https:\/\/www.fnlondon.com\/articles\/ether-breaks-out-from-bitcoins-shadow-in-fresh-all-time-highs-20210422\" target=\"_blank\" rel=\"noreferrer noopener\">Ether breaks out from bitcoin\u2019s shadow in fresh all-time highs<\/a><\/p>\n\n\n\n<p>Tax concerns have long weighed on the&nbsp;<a href=\"https:\/\/www.fnlondon.com\/articles\/dogecoin-on-the-rise-whats-behind-the-meme-coins-surge-how-far-could-it-go-20210420\" target=\"_blank\" rel=\"noreferrer noopener\">cryptocurrency<\/a>&nbsp;sector, with different rules appearing in various geographies. In the US, the IRS views cryptocurrencies as an asset \u2014 making the tokens virtually unusable as a form of everyday payment, as taxpayers must declare all crypto transactions.<\/p>\n\n\n\n<p>\u201cIt is clear that bitcoin is more sensitive to capital gains tax threats than most \u2018asset\u2019 classes. The threat of regulation, either directly in developed markets or indirectly via the taxman, has always been crypto\u2019s Achilles\u2019 heel, in my opinion,\u201d Jeffrey Halley, senior market analyst at Oanda, told clients in a note seen by&nbsp;<em>The Wall Street Journal<\/em>.<\/p>\n\n\n\n<p>Halley predicted that the next level bitcoin could fall to is $42,000, which \u201cmight come this weekend, or next week or perhaps not at all.\u201d<\/p>\n\n\n\n<p>\u201cHopefully, we will hear as many \u2018experts\u2019 saying this is a sign of bitcoin becoming a \u2018maturing mainstream asset\u2019 if it falls 10% this weekend, as we do when it rises, or a crypto exchange chooses to IPO,\u201d he added.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The $50,000 mark is viewed as a key support threshold for bitcoin reaching higher prices By&nbsp;Emily NicolleFriday April 23, 2021 8:22 am Cryptocurrency prices have fallen across the board, ending a recent rally for ether and pushing bitcoin below the $50,000 mark. Bitcoin has fallen more than 10.4% in the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":75,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/posts\/35"}],"collection":[{"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35"}],"version-history":[{"count":2,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/posts\/35\/revisions"}],"predecessor-version":[{"id":74,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/posts\/35\/revisions\/74"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=\/wp\/v2\/media\/75"}],"wp:attachment":[{"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptonewcenter.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}