Wednesday, August 27, 2025

Bitcoin Plummets Below $50K as Markets React to Biden’s Capital Gains Tax

Bitcoin and other major cryptocurrencies plummeted on Friday, after details surrounding the Biden administration’s proposed capital gains tax surfaced.

On Friday morning, bitcoin plunged to below US$50,000 for the first time since the beginning of March, after it was revealed that President Biden plans to raise the capital gains tax for those making over $1 million to 43.4%, with the addition of a surtax. Similarly, ethereum fell to around $1,200, while XRP, the fifth largest cryptocurrency, suffered a decline of more than 15%.

The latest tax proposal would help fund several trillion-dollar spending initiatives aimed at addressing shortcomings in the US economy and growing inequality. According to data compiled by CoinMarketCap, the latest liquidation erased over $200 billion of value from the total cryptocurrency market.

The latest news triggered a massive sell-off in markets, as all three major US indices recorded declines by day’s end on Thursday. Now, analysts are beginning to fear that Biden’s capital gains proposal may extend into crypto investors’ sentiment, which has thus far pushed bitcoin prices to new record highs. In the meantime, concerns have been rising over a potential regulatory crackdown on digital currencies, given that back in February, Treasury Secretary Janet Yellen called bitcoin a “highly speculative asset.”


Information for this briefing was found via CoinMarketCap. Thee author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Goliath Resources Hits 10.60 g/t Gold Over 22.82 Metres, Highest Grade Results In Third Distinct Rock Package At Surebet Discovery

Four Countries Control the Fertilizer That Feeds the World | Sage Potash

$10,000 Gold Is Just A Question of Time | Florian Grummes

Recommended

Nord Precious Metals Identifies 29 Veins At Castle East Following 3D Modeling

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

Related News

MicroStrategy’s Debt Problem Grows On Bitcoin Acquisition Strategy; Saylor: “It’s Not Debt”

MicroStrategy (NASDAQ: MSTR), once a prominent software company of the dot-com era, has become synonymous...

Sunday, December 29, 2024, 09:37:00 AM

Mastercard To Begin Allowing Certain Cryptocurrencies On Its Network

The digital asset boom has been intensifying recently, as a number of financial platforms have...

Thursday, February 11, 2021, 10:45:00 AM

Cathie Wood’s Ark Invest Files Petition With SEC to Create Bitcoin ETF

Despite the latest onslaught of scrutiny facing bitcoin across a number of countries, long-time bitcoin...

Tuesday, June 29, 2021, 02:44:00 PM

Crypto: Regulatory Risk Is Present In Any Asset Class – The Daily Dive feat Frank Holmes

Today on the Daily Dive, host Cassandra Leah sits down with someone whom is becoming...

Wednesday, May 26, 2021, 01:30:00 PM

EU Proposes Tighter Regulations on Cryptocurrency Transfers

Cryptocurrency transactions made in the European Union may soon be subject to tighter regulatory oversight,...

Wednesday, July 21, 2021, 08:00:05 AM