TOKYO/LONDON/NEW YORK- Bitcoin and other cryptocurrencies posted sharp losses on Friday, on concern that US President Joe Biden’s plan to raise capital gains taxes will curb investments in digital assets.
News reports said the Biden administration is planning a raft of proposed changes to the US tax code, including a plan to nearly double taxes on capital gains to 39.6 percent for people earning more than $1 million.
Bitcoin, the biggest and most popular cryptocurrency, slumped to $47,555, falling below the $50,000 mark for the first time since early March. It was last down 4 percent at $49,667.
Smaller rivals Ether and XRP fell 3.5 percent and 6.7 percent, respectively, while dogecoin, created as a joke for early crypto adopters and which had surged about 8,000 percent this year prior to this latest setback, was down 20 percent at $0.21, according to price and data tracker CoinGecko.
