Why is bitcoin going down? Here are a few reasons

Some buyers are saying bye-bye to bitcoin, which is inflicting the cryptocurrency’s worth to crash.

Is the COVID-19 pandemic accountable?

Not like for many issues lately, the reply is no.

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Fingers as an alternative are pointing to 1600 Pennsylvania Avenue, due to stories that President Joe Biden is planning to boost the tax on capital positive aspects.

For rich folks, meaning a hike to 39.6% from the present 20%, according to various media reports. That cash the federal authorities would acquire from the tax improve would tackle inequality and fund issues like schooling and childcare—a part of the president’s $1 trillion-plus American Households Plan, anticipated to be unveiled subsequent week.

For Wall Road, a greater tax on capital positive aspects may imply the wealthy promoting a few of their fairness belongings.

Enter Bitcoin.

It’s now buying and selling at lower than $49,500, however the cryptocurrency has been declining all week, in accordance with Coindesk. Bitcoin’s all-time excessive is $64,829.14.

Additionally price noting: Bitcoin rode a wave of investor pleasure final week within the lead-up to Coinbase’s debut on the Nasdaq. Bitcoin hit an all-time excessive the day earlier than the cryptocurrency trade went public. So a comedown from that hype is not too stunning.

Bitcoin’s fall comes throughout the identical week that buyers tried to drive up the worth of dogecoin, declaring April 20 (also called Weed Day) DogeDay. Tuesday’s effort failed.

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