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Bitcoin Sell-Off, Biden Tax Plan, Turkish Exchange

Cryptocurrency News: Bitcoin Sell-Off, Biden Tax Plan, Turkish Exchange


Even the coins that had managed to make some gains in recent days like Ethereum plummeted on Friday in a scenario tinted red by losses.

One of the drivers of the drops may be due to the package of tax measures that the Biden administration announced, which admitted that it is considering increasing the capital gains tax by almost 40% for them to earn 1 million dollars or more a year.

The fall of Bitcoin, of almost 20%, marks it as the worst fall since it touched the record of $64,870 on April 14.

A decline occurred following Coinbase’s IPO, followed by what for many is a week of inexplicable lows. Price of bitcoin At the time of this writing around $55,000 per unit is almost double that of communism by 2021, with the crypto market a total valuation of 2 trillion dollars.

Altocoins are also seeing sharp declines with XRP, Ethereum down 13% and 7% respectively and BNB coin down 5.8%.

Cryptos sink over Biden tax plans: Bitcoin, Ether, XRP, Dogecoin are down 

Bitcoin and other cryptocurrencies suffered significant losses on Friday, amid concerns that US President Joe Biden’s decision to raise capital gains taxes will discourage investment in digital assets.

Bitcoin’s value tripled in 2020 as a result of rising prices, then doubled in 2021 until plummeting. Bitcoin’s all-time high coincided with its launch on Coinbase Global Inc.’s stock exchange, the world’s largest cryptocurrency exchange. “We believe Bitcoin is down for the time being,” he said, citing technical trend lines. According to Michael Oliver of the research firm Momentum Structural Analysis, Bitcoin’s recent surge has shown signs of decadence.

The most recent threat comes from Bloomberg News, which reported on Wednesday that Biden’s administration is considering increasing the capital gains tax to 39.6% for those who earn more than $1 million a year. This was enough to trigger the largest drop in US behavior in five weeks. United States investors in Bitcoin, which has gained more than 70% this year after its recent reversal, are also subject to a capital gains tax if they sell the cryptocurrency by keeping it for more than a year. Yet money has been one of the best-performing assets in recent years: everything you bought a year ago now has a higher return.

Turkish crypto exchange boss disappears taking 2 billion

According to a statement on Thodex’s website, the company’s platform has been “temporarily closed” to address a “abnormal fluctuation in the company’s accounts.” Demiroren, a news agency, published a photo of what it said was Ozer exiting the Istanbul airport. According to local media reports, Faruk Fatih Özer, the founder of Thodex, has flown to Albania, bringing $2 billion in investment funds with him.

Thodex had 400.000 users, of which 390.000 were active, according to an attorney who filed a criminal complaint against Ozer. However, Ozer has denied the allegations, claiming that only 30.000 users have been affected by the situation and that the reports of losses totaling 2 billion dollars are “unfounded.” According to Anadolu, Turkish authorities have issued an international order calling for Ozer’s extradition. The police have detained 62 people in eight cities, including Estambul, according to the state news agency. Some Turkish citizens have turned to cryptocurrencies as a way to protect their savings from rising inflation.

Thousands of Thodex users have filed complaints against the company, and investors claim they are unable to access their accounts, fearing that their losses will be irreversible. According to reports, the exchange claimed to have distributed 4 million cryptocurrency tokens based on memes, but several users said they have not received them. It serves as a reminder of the regulatory uncertainty that surrounds the cryptography industry. Despite the fact that some countries are enacting regulations aimed at bringing cryptographic businesses under their control, the industry lacks the level of scrutiny seen in more developed financial markets.

Sources: MSN News, Coindesk, Al Jazeera, WSJ, CNBC.

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