Bitcoin Plummets Below $20K as Tax Fears Send Shockwaves Through Crypto Market

• Bitcoin (BTC) has dropped below $20,000 due to fears surrounding Silvergate Bank and President Biden’s new tax rule.
• The budget proposes a 30% tax rate on Bitcoin miners, which could significantly impact the industry in the US.
• Other negative news, such as Silicon Valley Bank troubles and USAG suing KuCoin, are also contributing to the selloff in the cryptocurrency market.

Bitcoin Plummets Below $20K

The price of Bitcoin (BTC) has dropped below its psychologically important support level of $20,000 due to a confluence of factors that have sent Fear, Uncertainty, and Doubt (FUD) to stakeholders in the industry. At the time of writing, Bitcoin is changing hands at a spot price of $19,872.38, down by 8.46% over the past 24 hours and by more than 11% within the trailing 7-day period.

Biden’s New Tax Rule

President Joe Biden’s government has proposed a supplementary budget explainer that includes plans for taxing Bitcoin miners at a rate of 30%. This high taxation rate could weigh down heavily on the mining sector in America and shift rankings when it comes to cryptocurrencies globally due to increased financial strain for many miners who may be unable to cope with it.

Other Major Concerns

Changpeng „CZ“ Zhao tweeted that he woke up after just 4 hours sleep to find out about various news sources contributing to the slump in crypto markets today; including Silicon Vally Bank troubles, USAG Sues KuCoin and Huobi token flash crash – all causing further negative pressures on the digital currency ecosystem.

Silvergate Bank Fears

Fears surrounding Silvergate Bank are among other core triggers that have caused this ongoing selloff in crypto markets; specifically related to their potential insolvency which could create an imbalance between supply & demand in crypto markets if they were forced into liquidation proceedings or bankruptcy protection.

Wider Impact

The energy costs associated with Web3.0 ecosystems have already plunged many dominant crypto miners firms into states where they have become non-operational – should President Biden’s 30% taxation plan be implemented this will only further add stress onto these firms as well as wider digital currency markets with long lasting effects felt across industries globally.

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