INSUBCONTINENT EXCLUSIVE:
The tax plans jolted markets, prompting investors to book profits in stocks and other risk assetsBitcoin 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
since early March, while smaller rivals Ether and XRP fell around seven per cent.The tax plans jolted markets, prompting investors to book
profits in stocks and other risk assets, which have rallied massively on hopes of a solid economic recovery
Levies on investment gains were reported to be in line for record increases."Bitcoin headed South today after President Biden signalled that
he wanted to raise capital gains tax in the US," said Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA
"Now whether that happens or not, many bitcoin investors are probably sitting on some substantial capital gains if they stayed the course
over the past year.""I firmly believe that developed market regulation and/or taxation remain the crypto markets' Achilles Heel," he added
with posts about the plan hurting cryptocurrencies, and individual investors complaining about losses, some traders and analysts said
declines are likely to be temporary
"I don't think Biden's taxes plans will have a big impact on bitcoin," said Ruud Feltkamp, CEO at automated crypto trading bot Cryptohopper
"Bitcoin has only gone up for a long time, it is only natural to see a consolidation
Traders are simply cashing in on winnings."Others also remained bullish on bitcoin's long term prospects, but noted it might take time
before prices start increasing again
"There are reasons to believe the overall trend will remain bullish unless the price drops below $40k," said Ulrik Lykke, executive director
at crypto hedge fund ARK36
"At the moment, we are not convinced that the trend will reverse into a bear market but we acknowledge it may take some time before the
pre-market trading, marking the lowest level since its listing earlier this month
The listing had driven bitcoin prices to $65,000, before pulling back 25% in the following days
chief market analyst at Markets.com.
