Bitcoin Plummets Below $20K as Biden’s Tax Plan Sends Shockwaves

• Bitcoin’s price has dropped below $20,000 due to fears surrounding Silvergate Bank and President Biden’s new tax rule.
• The proposed 30% taxation rate on Bitcoin miners could shift the country’s ranking as a crypto superpower.
• Other factors such as Silicon Valley Bank troubles and USA lawsuits against KuCoin have added to the overall market FUD.

Bitcoin Price Plummets Below $20K

The crypto ecosystem has dropped in valuation with Bitcoin leading the selloffs. Fears surrounding Silvergate Bank and President Biden’s new tax rule are among the core triggers of the ongoing selloff. The price of the premier cryptocurrency Bitcoin (BTC) is currently 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 Tax Rule Impact

According to President Joe Biden’s supplementary budget explainer, his government wants to tax Bitcoin miners at a rate of 30%. This has caused many industry experts to tag this amount as being highly ridiculous as it could significantly weigh down the mining sector in America and shift its ranking as a crypto superpower globally. Additionally, surging energy costs have already plunged many dominant crypto firms into states where they have become non-operational; should this taxation be implemented, it may stir such financial strain that miners may be unable to cope with it.

FUD Factors

Changpeng „CZ“ Zhao of Binance tweeted about some other major concerns for the market that add to Fear, Uncertainty, and Doubt (FUD). These include Silicon Vally Bank troubles, USAG suing KuCoin, Whitehouse wanting 30% tax on mining electricity, Huobi token flash crash, and other crypto prices dipping slightly despite Bitcoin still producing blocks.

Market Analysis

The current market sentiment is generally negative given all these issues that are weighing down cryptocurrencies in general with Bitcoin taking most of the hit due to its higher stake in terms of value compared to other coins in circulation today. However, there is hope that once these issues are resolved or better managed then investors can look forward to an upturn in prices again soon enough.

Conclusion

In conclusion we can see that while these current events have caused quite a bit of panic amongst investors, there is still cause for optimism regarding future prospects for cryptocurrencies if measures are taken quicklyto mitigate any further losses from occurring now or later on down the line when conditions stabilize again eventually.