Massive Downturn in Cryptocurrency Market as Bitcoin Takes a Dive

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Cryptocurrency by TLC-kios is marked with CC0 1.0

Cryptocurrency has been an exciting and optimistic place for people to grow their money during a time of very volatile markets. 

But a recent plunge has some investors worried. 

Over $200 billion in value was lost on Friday in the cryptocurrency market, with Bitcoin leading the downward momentum. 

Part of the reason for the big crash is the disastrous policies of Democrat puppet Joe Biden, who is planning to raise long-term capital gains tax on the richest Americans to more than 43% including an extra tax.

The result?

Massive sell-offs in the crypto market by the biggest investors.

Bitcoin went up more than 600% in the past year, but is currently down 19.2% in the past week with a current value hovering around $49,330 as of this writing. 

bitcoin-2643159_1920 by alansimpsonMe is marked with CC PDM 1.0

What’s Going on in the Crypto Market?

As Nerdwallet notes, “a cryptocurrency (or ‘crypto’) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward.”

The cryptocurrency market has been the absolute Wild West of investing the past few years in particular, with the price of the Ethereum (ETH) cryptocurrency rising 1,073% in the past year, for example, and Cardano (ADA) rising 2,587% in the past year. 

These massive gains have brought in many new investors: but what goes up must come down. 

Cryptocurrency insiders say that this is just a dip before the next major power boost forward, however. 

Head of business development at the Luno crypto exchange Vijay Ayyar says this is just a temporary lull. 

“The market has run up quite a bit overall, and it’s probably cooling off before the next leg up, Ayyar said.

The fact is that there was a noticeable link between Biden’s long-term capital gains tax raise idea and the crash. With a huge number like 43.4% we’re talking about a higher rate than the top federal tax on income. It would hit every asset in a taxable account, devastating wealthy clients with a large stake in crypto. 

Count on Democrats to dynamite any chance for people to gain private wealth and try to extract it in taxes for their special interests and corrupt worldwide agenda. 

Is Now the Golden Moment to Invest in Crypto?

Ayyar may be right and this is currently just a dip before the next big run. Other insiders also think that Biden’s tax plans won’t actually continue to sink crypto such as crypto lending firm Nexo founder Antoni Trenchev who said that:

“It would make even greater sense to play that oldest trick in the manage-your-finances-smart book: borrow against your assets to avoid capital gains taxes. And what better collateral than one that — despite today’s price dip, likely caused by the said proposal — appreciates in value like Bitcoin?”

He’s right that the track record for crypto is the best investment you can currently make, and even huge companies like Tesla have bought billions in crypto as they also sense the enormous opportunity. 

There are always risks, and it’s up to investors to do their due diligence, particularly on purely speculative crypto coins like Dogecoin (DOGE). There is always the risk that the federal government will make a big move to restrict crypto and go against it, with US Treasury Secretary and former Fed head Janet Yellen saying bitcoin is a “highly speculative asset” two months ago and countries like India banning crypto altogether. 

Nonetheless, at this time cryptocurrency is something that investors should keep their eyes on and consider looking into.