As known from:
CoinWireICOBenchCoinCodex
Write a Review
Write a Review
Nothing Found
Contains commercial content
TradersBest.com / Why Bitcoin’s Price Has Fallen This Week

Why Bitcoin’s Price Has Fallen This Week

Publish Date: 23/04/2021

This week bitcoin’s trading price fell below $50,000 on Friday morning, marking a 10% drop and its lowest trading price since February. 

Other crypto coins also fell, including Ethereum, taking a total of over $200m from the total crypto market. Ethereum had it’s record high on Thursday before dropping 11% on Friday morning.

Biden Tax Hike the Likely Cause

The main driving force behind the price slump is though to be Joe Biden’s proposed doubling of capital gains tax. People have been selling off bitcoin and other assets as the Biden is expected to 43.4%. Should it come to fruition, the tax would be applied to the wealthiest Americans on assets held in accounts for more than year. Selling newly bought cryptocurrencies and shares now is therefor seen as a logical option by many.

The tax is being dubbed as something of a “Robinhood” tax by many, in that in theory it involves taking from the rich and giving to the poor. Should it go through, it will make te top level capital gains tax higher than the highest federal tax on income earnings.

Coinbase’s Stock Market Value Also Falls

As well as cryptocurrencies, stock and shares also fell, with all three major US indices falling into the red as trading closed on Thursday. Included in these was crypto currency exchange Coinbase, whose value has been steadily falling over the course of this week, finishing at its lowest value yet on Thursday night. COIN’s value did raleigh slightly on Friday, seeing a 3% rise by midday (E.T).

Biden Could Be Doing the Industry a Favor

If Biden presses ahead, crypto investors could be among the hardest hit, given the that the surge in value over the past year has propelled many into the top tier tax bracket. Understandably, the announcement has therefore faced a largely negative reaction from financiers and crypto investors.

Still, Antoni Trenchev, co-founder of crypto lender Nexo, actually thinks that Biden could be doing the crypto industry a favor. He suggested that investors could borrow against their assets to avoid tax, rather than selling off. He followed up by saying that despite the recent price drop, bitcoin is the best collateral because of how much it has increased in value over the past year.

Bitcoin Had Grown by 66% in 2021 Alone

Trenchev isn’t wrong if we look at the behavior of bitcoin and other cryptos in 2021. Until the drop this week, bitcoin had risen 66% in the first three and a half months of 2021. Ethereum had grown more than 200%, due to the fact that it is better placed technologically than bitcoin to become used for daily transactions.

While the prospect of daily use has driven up Ethereum’s value, bitcoin has been driven by banks and big business approval and investment. Tesla invested millions of dollars in bitcoin, meanwhile banks such as Morgan Stanley have been making moves to encourage clients to buy bitcoin.

Read Also
Bitcoin Suffers Worst Trading Month Since May
Cryptocurrencies had a bad day on the markets following a brief post-Christmas ...
Bitcoin Falls Below $60,000
This week saw the value of Bitcoin taking a dramatic plunge to ...
IRS Continues to Clamp Down on Crypto Tax Avoiders
The latest word coming out of the IRS is that a major ...
Ethereum Continues to Soar
On Thursday, the world second-largest cryptocurrency in terms of market value, hit ...
Biden’s Proposed $1.8 Trillion Stimulus Package Extends Gains On Global Shares
U.S. President Joe Biden proposes a $1.8 trillion stimulus package after the ...
Latest News
Study: how do finances shape our love life?
Do we find someone less attractive if they're ...
Is FTX Bankrupt? 
The crypto market has seen a drastic change ...
Disney Shares Jump 6% After Positive Earnings Report
A booming subscriber base and the return of ...
Alibaba Posts Flat Revenue Growth But Stock Still Jumps 6%
Chinese ecommerce giant Alibaba posted its first earnings ...
Intel Stock Slumps Over 8% Following Weak Earnings Report
Chip-maker Intel suffered a disastrous end to last ...
Top Forex Sites
Ally Invest
Ally Invest
Ally Invest Review
4.8/5
Webull
Webull
Webull Review
4.6/5
Kraken
Kraken
Kraken Review
4.3/5
Nadex
Nadex Review
3.6/5
Interactive Brokers
Interactive Brokers Review
4.8/5
Receive the latest trading news by email + our free eBook
Crypto eBook EN
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Receive the latest trading news by email + our free eBook
Nobody is born a trading expert. Register now to receive the Ultimate Guide to Trading Cryptocurrencies in 2022 (and beyond), and receive the TradersBest.com newsletter with the latest market news and broker reviews!.

By registering, I agree that TradersBest.com may send me newsletters via email at regular intervals. This consent can be revoked at any time.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.

Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

This site is using Cloudflare and adheres to the Google Safe Browsing Program. We adapted Google's Privacy Guidelines to keep your data safe at all times.

21+NCPG
Close
×
Your Promo Code:
The bonus offer of was already opened in an additional window. If not, you can open it also by clicking the following link:
Visit Site