Bitcoin suffers hefty loss, falls below $50K after Biden’s tax plans

Bitcoin and other cryptocurrencies suffered hefty losses on Friday on concern that U.S. President Joe Biden’s plan to raise capital gains taxes will curb investment in digital assets.

The selloff came after reports that the Biden administration is planning a raft of proposed changes to the U.S.

tax code, including a plan to nearly double taxes on capital gains to 39.6 per cent for people earning more than $1 million.

Bitcoin, the biggest and most popular cryptocurrency , slumped five per cent to $48,886, falling below the $50,000 mark for the first time since early March, while smaller rivals Ether and XRP fell around seven per cent.

Bitcoin is on track for a 15 per cent loss on the week, though it is still up 65 per cent since the start of the year. Ether dropped more than ten per cent on the day to as low as $2,107, a day after climbing to a record $2,645.97.