Over the past few weeks, there has been so much uncertainty in the cryptocurrency market. Specifically, the price of Bitcoin has been fluctuating seriously and this is a huge problem for miners. Over the past 24 hours, the price of Bitcoin saw a consistent drop to $47,100. However, before the close of the day, the price rose back to about $52,000.
The ups and downs of the market have also made Bitcoin investors’ pockets fluctuate drastically. According to tripartite data, at one time, nearly 450,000 people broke their positions due to speculation in Bitcoin in the past 24 hours. The liquidation rate is so high right now and it exceeds $3 billion.
Some people believe that the sudden drop in bitcoin prices may be related to rumors that the United States may raise the tax rate on capital gains for the wealthy. Wall Street leaders dumped their holdings and virtual currencies to prevent robbing after the law is implemented.
Bitcoin drops below $5000 for the first time in almost two months
Many weeks ago, the world’s most popular crypto money, Bitcoin saw a consistent rise to about $64,000 per coin. The coin took a huge nosedive to $52,000 per coin two weeks ago but rose again as of Monday last week to $57,000.
According to the latest report on Bitcoin, the price of Bitcoin dropped sharply and even fell below the $50,000 mark. This is the first time since March 5th that the price of Bitcoin will be dropping so low. The President of the United States plans to nearly double the capital gains tax rate for the wealthy to 39.6%. Together with the existing investment income surcharge, this means the federal capital gains tax rate for investors. The highest will reach 43.4%. As soon as the news hit the public, Bitcoin fell in response.
In fact, falling below the $50,000 mark is a huge surprise but it is also currently experiencing a difficult rebound. Bitcoin is the world’s largest cryptocurrency and is known for its dramatic price fluctuations. It had a hot start this year, but so far in April, the cryptocurrency’s performance has been mediocre.
Nomics data shows that the price of Bitcoin fell by 17% last week, and has fallen by nearly 5% in the past 24 hours. Previously, on April 12, the price of the cryptocurrency hit a record high of $63,520. In the past 14 days, its price has fallen by over $15,000.