Newly elected U.S President Joe Biden has only been in office for several months. However the President is making sweeping changes across the board that could impact bitcoin and cryptocurrencies.
President Biden is set to impose new capital-gains tax laws that are set to predominantly affect the wealthy. The proposed tax laws are set to benefit the population by funding programs, without damaging the economy.
The proposed tax rate could go as high as 43.4%. The news appears to have negatively impacted the cryptocurrency market, as bitcoin tumbled to new monthly lows.
Popular financial markets trader Peter Brandt voiced his opinions on the recent tax plans, speculating that they could negatively impact bitcoin. Brandt stated “Going forward. The Biden presidency may become a big negative factor for Bitcoin. Large BTC supply will come to market to get in front of capital gains taxes which will exceed 55% in some U.S. states”.
Brandt further stated that his opinion did not mean he was long-term bearish on bitcoin. Further referring to himself as a “Bitcoin bull Libertarian”.
Biden tax proposal sees bitcoin slide
The latest developments could see the wealthy being taxed heavily in the future. The news appeared to coincide with bitcoin dropping over 15% over the week. Bitcoin slid from just under $60,000 on Monday, down to under $50,000 by Sunday.
CEO of Kraken exchange, Jesse Powell also commented on the latest developments. Asking his twitter following if moving to Austin, Texas would be a good idea. Some feedback recommended Puerto Rico, with Powell stating “Also high on the list. Might be the only escape from the Biden plan for cap gains”.
Biden has approved several large stimulus packages, which have seen stimulus checks being paid out to U.S citizens. Previously it was considered a bullish scenario for the cryptocurrency market. However it seems that the latest tax implications could hurt future growth of the crypto market.
The U.S President is also in early discussions regarding regulating the market. With the newly elected Securities and Exchange Commission (SEC) Chair in Gary Gensler leading the way.