The price of Bitcoin (BTC) experienced a particularly sharp drop last night, dropping back below $ 50,000 and dragging altcoins with it. We decipher what happened.
The price of Bitcoin (BTC) was already struggling to stay above $ 55,000, but the fall overnight was particularly brutal. In the space of a dozen hours, BTC lost -12% falling back below $ 50,000:
Its capitalization has dropped back below $ 1 trillion, with price at the time of writing reaching $ 49,449. This corresponds to a decrease of -22% over the week.
Altcoins are not in better shape, with Ether (ETH) losing -11% over the last 24 hours, and Binance Coin (BNB) losing -12%. Ripple’s XRP is among the biggest drops, with -23% over the same period. But in the top 10, it is the Dogecoin (DOGE) which has suffered the most, with -30% over the last 24 hours. We note, however, that altcoin does not erase all of its gains: it is the only one to progress over the week (+ 12%).
Why have the markets fallen?
How to explain this sudden fall? It seems that the wind of panic that blew through the markets tonight is coming from the United States. A rumor has indeed circulated about a new measure being considered by President Joe Biden, which would like to increase the tax rates on capital gains, that is to say more tax the great fortunes.
The proposal would seek to tax people earning more than $ 1 million a year, and holding those funds over the same period. According to Bloomberg, they could be taxed at a minimum of 43%, and up to 56%, to fund social programs.
So this obviously concerns the cryptocurrency whales, and that’s certainly what triggered this widespread panic. It should also be noted that the S & P500, the Dow Jones and the Nasdaq have also reacted to the news, which shows that the sentiment is not confined to the domain of cryptocurrencies. The $ 50,000 threshold has in any case become crucial for BTC, which risks falling even lower if it fails to maintain it.