Bitcoin Price Drops By 8% As Capital Gains Tax Is Expected To Increase

Bitcoin shocked the world by losing about 8% of its value in 24 hours, with almost every other crypto coin also falling.

The leading crypto coin fell from $54,440 to $49,644 on Thursday. Making it the first time bitcoin has traded below $50,000 since early March. This downturn resulted in a deduction of more than $200 billion from the value of the entire cryptocurrency market, according to data from CoinMarketCap.

One of the reasons for this sudden change is President Biden's plans to raise long-term capital gains tax to 43.4 percent for wealthy Americans. Capital gains tax is simply the government fee or tax imposed on the profit gotten from the sale of certain assets, like stocks, real estate, bonds, or precious metals.

This resulted in massive selling of stocks by US investors, with all the major US indexes ending Thursday's trading session in the red. The fears affected crypto investors as well, leading to a lot of investors selling off their coins.

Bitcoin wasn't the only coin to drop; Dogecoin, (DOGE), went down about 26 percent to about $0.2; Ripple (XRP) went down 16 percent; while Ethereum (ETH) which was previously at $2,220 went down 8 percent in 24 hours. 

Bitcoin Gold (BTG) was the only digital currency to grow significantly as it climbed a third to $111.

This year alone, BTC has risen 66 percent while ETH has drastically grown, way above 200%. More and more people have gotten into the crypto world and more companies and countries are recognizing cryptocurrencies as a means of exchange. Companies like Tesla and Square made the news for investing billions of dollars into coins like Bitcoin.