Bitcoin Bitcoin stocks, on plan Trader: The tumbles tax weighs Biden
Fri, 23 Apr 2021 12:00:00 +0100
Overnight weakness on Wall Street has fed through to European indices
Fri, 23 Apr 2021 12:00:00 +0100
THE price of Bitcoin has plunged by $15000 this morning, falling to its lowest value since March
The cryptocurrency dropped from an all-time high of
THE price of Bitcoin has plunged by $15,000 this morning, falling to its lowest value since March.
The cryptocurrency dropped from an all-time high of $63,745 (£45,918) on April 14 to $48,409 (£34,871) at around 12pm today, according to Coinmarketcap.com.
The value plunged by more than 10% over the past 24-hours, and it's the first time in six weeks that it fell below the $50,000 (£36,017) mark.
The crash follows a year of highs, but Bitcoin is still worth significantly more than it was in March 2020 when it was valued below $5,000 (£3,601).
Even so, it's a stark reminder of the high risks that come with investing in cryptocurrency.
You should never invest unless you understand it and can afford to lose cash.
It comes days after Bitcoin had its biggest one-day drop in two months on Sunday, after reaching record highs for the first time earlier this month.
The fall comes over fears President Joe Biden could slap a capital gains tax worth up to 43.4% on investments held for longer than a year.
It would reverse former President Trump's 2017 tax cut for the wealthy and could hit the pockets of those who make serious gains on cryptocurrency.
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
The speculative crackdown on crypto money gains was enough to spook some investors who have been quick to sell up.
Other cryptocurrencies have also taken a hit over the past 24 hours.
Yesterday, Ethereum, also known as Ether, shot to record highs but has since plunged by 8.6%.
Binance Coin has also dropped by 9.13%, while XRP has fallen by a huge 15.45%.
“It is important to note that Biden's proposal to increase capital gains tax will need to go through the Senate, and, even if approved, we still don't know a date that it would go live,” said SimonPeters, cryptoasset analyst investment platform eToro.
“Nonetheless, we are clearly seeing some selling pressure.
“This has coincided with the crypto market arguably looking quite frothy after a ramp up in purchases (and prices) in recent months, with this announcement acting as a catalyst for a deeper retracement.”
Bitcoin has already plummeted by 25% from its all-time high and is on track for a 15% loss on the week, but experts reckon the declines are only be temporary.
“Whilst these sorts of price fluctuations would be real cause for concern in the stock market, we are used to seeing price swings like this in cryptoassets,” Mr Peters added.
Novice cryptocurrency investors should be wary and do thorough research before parting with their cash.
There have also been warnings around scams related to cryptocurrencies,
Bitcoin's surge last week was helped by Coinbase going public – it's the first cryptocurrency exchange to trade its shares on a stock exchange.
The cryptocurrency hit previous highs in February, when Tesla announced it would soon allows customers to make purchases using Bitcoin.
That announcement came with the revelation that Elon Musk's tech firm had also invested $1.5 billion in Bitcoin.
Bitcoin broke through the $20,000 price mark for the first time in December as interest in bitcoin becomes more mainstream.
But the price previously plummeted when the coronavirus crisis first hit, sinking to £3,300 last March.
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– April 23, 2021
Bitcoin The Trader Biden tax plan weighs on stocks tumbles