Bitcoin price fell below the psychologically important level of $ 50,000 on Friday as concerns about rising US taxes shifted to cryptocurrencies and recent pressures on these alternative investments increased.
According to Coindesk, the last time it changed hands at $ 49,225, a drop of nearly 10% in 24 hours and a level not seen since early March. The losses were distributed to other cryptocurrencies using ether
in the Ethereum network, which also fell around 10% over the same period and was trading at USD 2,219. XRP
The company is tied to Ripple and has lost 21% in 24 hours. Most recently, it traded at a new high of $ 1.00.
The new losses for Bitcoin represent a decrease of around 24% from the recent high of $ 64,829 for the cryptocurrency, which is the widely accepted definition of a correction. Bitcoin saw a sharp drop over the past weekend, although the volatility of the cryptocurrency means a drop of more than 10% is not uncommon. Fears of increased regulation were at the center of the withdrawal last Sunday.
Friday's losses follow a 300-point loss for the Dow industry
according to a media report that President Joe Biden is considering a plan to nearly double capital gains tax on the rich.
“It is clear that Bitcoin is more sensitive to tax threats from investment income than most“ asset classes ”. The threat of regulation, either directly in developed markets or indirectly through the tax official, has always been the Achilles heel of crypto in my opinion, "Jeffrey Halley, senior market analyst at OANDA, told clients in a note.
Halley said the next level of Bitcoin to look out for is $ 42,000, which "could be this weekend or next week or maybe not at all".
Hopefully we'll hear as many 'experts' say this is a sign that Bitcoin will become a 'mainstream mature asset' if it falls 10% this weekend like we do when it goes up or a crypto exchange decides to go public. " he said.
A number of analysts have warned of a short-term decline in Bitcoin as the cryptocurrency continued to decline after hitting an all-time high of over $ 64,000 following the direct listing of cryptocurrency platform Coinbase