As the crypto selloff is happening since last week, crypto investors were all shocked by major news coming straight from the US. The entire cryptocurrency market fell more than 12%, and the market capitalization fell below the USD 2 trillion marks. The first sell-off was related to a normal price adjustment, as the crypto market went way high for an extended period of time, and it was normal for a correction. Why did the second sell-off wave happen and why are cryptos down?
Biden wants to Tax Cryptos
The president of the US Joe Biden has been making significant changes to many laws. Since Biden is a democrat, his plans will consist of implementing higher taxes in order to enhance the country’s budget. This higher tax not only applies to big businesses, corporations, and wealthy individuals, but also to Crypto Holders!
Biden stated today on the 23rd of April 2021, that he is planning to tax nearly 40% individuals who are earning more than USD 1 million. Crypto whales usually affect heavily the crypto market, and many saw this speech as a threat to their capital gains. They most likely decided to liquidate earrings made to avoid paying capital taxes later when taxes are implemented. There are many crypto millionaires who sought refuge in this tax haven, but apparently, not anymore.
You might be asking, do ALL whales plan to do so at the very same moment? The answer is an obvious no, but a snowball effect usually happens in such circumstances. This comes especially after profit-taking occurred since last week. So this down market is an extension of profit-taking.
Which Cryptos were affected the Most in the past 24H?
From the Top 10, Dogecoin was the biggest loser, having a negative price change of 20%. This is quite normal as the humongous leap in prices pushed prices to more than 400% in 7 days. The second place goes to XRP, which already was flying high thanks to the developments in the SEC case. Its prices tanked around 19%.
Here’s a list of the top 10 in the past 24 hours:
1- Bitcoin (BTC) : – 10 %
2- Ether (ETH) : – 12 %
3- Binance Coin (BNB): – 13 %
4- Ripple (XRP) : – 19 %
5- Tether (USDT) : 0 %
6- Cardano (ADA) : – 12 %
7- Dogecoin (DOGE) : – 20 %
8- Polkadot (DOT) : – 12 %
9- Uniswap (UNI) : – 14 %
10- Litecoin (LTC): – 17 %
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Rudy Fares