Biden's tax plan upsets Bitcoin, altcoin market

President Joe Biden’s recent capital gains tax hike may well be the reason for the drop in the price of Bitcoin and altcoins. This hike seems to be giving investors a jittery feel about these virtual assets, thus, causing the price of the premier coin to drop below the $50,000 mark for the first time since March.

The only logical explanation for this move may be that investors want to offload digital assets (like BTC, BNB, ETH) with the biggest gains which will qualify them for a higher tax rate. Presently, the Internal Revenue Service (IRS) now requires taxpayers to file any transactions relating to digital currencies on their tax documents, thereby resulting in a massive reduction in the assets investors are willing to hold at the moment.

With several tax experts claiming that taxpayers holding crypto assets for over a year bound to pay higher capital gains tax, investors are increasingly offloading cryptocurrencies, Bitcoin, BNB, Ethereum a few of them.

While this move according to various experts and analysts is ephemeral, it is currently upsetting the crypto market with Bitcoin, Ethereum, and Dogecoin down by 10.07%, 10.89%, and 11.65% respectively.