Cryptocurrencies including Bitcoin, Ether and XRP suffered losses on Friday, spurred by fears surrounding President Biden’s proposed changes to the US Tax Code. Proposed changes involved plans to nearly double capital gains to 39.6% for people earning more than $1 million.
The most popular cryptocurrency fell by 7% to $48,176, falling below the $50,000 mark for the first time since early-March. Meanwhile Ether and XRP fell by about 10%.Shares of cryptocurrency exchange Coinbase also fell by 5%, to $278 in U.S. pre-market trading.
Despite the panic experienced by investors and traders, analysts estimate that this is likely to be a temporary slump.