The tentative sea of green today, however, marks a brief and limited recovery from an almighty crash that wiped hundreds of billions of dollars from the global market capitalization of the cryptocururency market.
At it's current price of $49,871 , Bitcoin has fallen about a third from its all time high of $64, 445, acchived on April 14. Tha latest crashed started on Thursday, and some commentators attribute it to UA President Joe Biden's proposal to double capital gain taxes from 20 to 39.6%.
Biden announced Thursday plans to increase capital gains taxes for the wealthiest Americans. This affect ultra- rich Bitcoin Holders and aspirants , since this would increase their tax bills if they sold their holdings; capital gains taxes are levied whenever Bitcoin is bought or sold.
There's is a lot of new capital that has entered the market, some investors are still on edge and unverified negative news can cause a lot of short- term damage. That is what we are seeing , Charley' Storry, head of growth of Defi index provider Phuture. The Crypto market is highly sensitive to news even if it's unfounded.
When Bitcoins priced dropped by approximately $10,000 last weekend traders, among them Darius Sit, co-founder of crypto investment fund, QCP Capital, attributed the drop to a single tweet from Indian financial newswire FXHedge. The tweet, since deleted ,said without evidence that the US Treasury was about to crack down on financial.