President Biden’s Gain Tax Proposal Result in Bitcoin’s Huge Drop
On Thursday afternoon, U.S. Bloomberg reported that President Biden would propose a gain tax up to 43.4% for wealthy gainers of 1 million gains a year, instead of the current 20%.
When the news dropped, both Stock market and Bitcoin’s price saw huge correction. Bitcoin price kept dropping from around 55,000$ to the dip point of 48,500$, a correction over 10% in just a few hours.
Though whether the proposal will be applied in crypto market is not determined yet, but it has already caused panic for the FOMO followers who bought Bitcoin at high prices in this bull round.
But is bitcoin losing the support line of 50,000$ the sign of a bear market coming? A few influencers on twitter don’t think so.
Joseph Young, a famous crypto analyst in Korea on Cointelegraph, posted a twitter on April 20 that he thought the retracement of Bitcoin/Ethereum to a reasonable range is sustainable for their further pump.
Also, the crypto analyst Michael van de Poppe emphasized that we are not in a bear market.
Others argue that it is unwise to sell their believed coins just because a proposal that just might not be passed by the House of Representatives or the Senates. Even though it passed, its application will be the next year.
Some influencers believes that before BTC reaching $100k, 30% correction for several times is reasonable according to historical data in 2017. It says bitcoin reached its ATH in 2017 after 6 times “crashes” of 30% price correction.
What your opinion of this drop? Is it a good chance to buy the dip? or will you sell your positions in believing the bear coming soon?
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