Bitcoin Plummets Below $20K as Biden’s Budget Shock Rocks Crypto Market

• Bitcoin has dropped below the $20,000 level due to fears surrounding President Biden’s new tax rule and troubles with Silvergate Bank.
• This is causing a lot of FUD (fear, uncertainty, and doubt) amongst crypto stakeholders.
• The Biden government plans to tax Bitcoin miners at 30%, which may shift the ranking of the US in crypto power and cause financial strain for miners.

Bitcoin Plummets Below $20K

The price of the premier cryptocurrency Bitcoin (BTC) has dropped below the psychologically important support level of $20,000 on fears of a higher tax rate. At the time of writing, Bitcoin is 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’s New Tax Rule

According to President Joe Biden’s supplementary budget explainer, his government wants to tax Bitcoin miners at a rate of 30%. This amount has been tagged as being highly ridiculous by many industry experts and it could significantly weigh down the Bitcoin mining sector in the United States by shifting its ranking as the next superpower when it comes to cryptocurrencies. Moreover, this could stir such financial strain that many miners may be unable to cope with due to soaring energy costs that have caused some dominant crypto miners firms into states where they have become non-operational.

Silvergate Bank Troubles

Fears surrounding Silvergate Bank are also among core triggers for current selloff in the crypto market . Changpeng „CZ“ Zhao – co-founder and Chief Executive Officer of Binance cryptocurrency trading platform- tweeted about Silicon Valley Bank troubles and USA suing KuCoin after sleeping for just 4 hours which contributed even more fear for investors in cryptomarket .

Flash Crash Of Huobi Token

The flash crash of Huobi token added fuel to FUD fire which made investors panic sell their assets creating huge losses . Other crypo prices also dipped due to this situation but bitcoin was still doing well , producing blocks regularly .

Conclusion

The digital currency ecosystem is experiencing a lot of negative pressures at this time with multiple factors contributing towards current market slump . All these events created Fear Uncertainty And Doubt amongst stakeholders resulting in huge drop in valuation across whole crypto ecosystem .