As Bitcoin price crashed below $50,000, mainstream media highlighted that the selling across the market could have been triggered by reports that the Biden administration proposed increasing the capital gains tax to 39.6% from the current 20% for people earning more than $1 million a year.
In other news, there was an apparent exit scam carried out by Thodex exchange owner Faruk Fatih Özer, which has affected about 391,000 users of the Turkish crypto exchange. Rumors are afloat that the owner may have fled the country with nearly $2 billion worth of crypto assets.
Daily cryptocurrency market performance. Source: Coin360
U.S. equity markets also sold off on April 22 as the tax hike rumors rattled investors but the S&P 500 has bounced back sharply today, indicating that market participants have discounted the news.
After the fall, the next big question on the minds of investors is whether the correction will deepen or is this the opportune time to open new positions.
Let’s analyze the charts