Why Is Bitcoin Going Down? Bitcoin investors are eager to know the reason for BTC’s fall. There are lots of factors that caused the currency to crash. Which fingers are pointing to 1600 Pennsylvania Avenue, due to the reports that President Biden is planning to raise the tax on capital?
However, because of this, some investors are now saying goodbye to BTC, which in turn makes the price go down. Yes, because the more investors the more the price goes up.
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Moreover, apart from the reason mentioned above, the trending news on the BTC crash, as at the time of this writing is related to Elon Musk’s tweet. Find out the details in the section below.
Why Is Bitcoin Going Down
Currently, two reasons why BTC price is decreasing could be the following.
President Biden’s Plans to Raise the Tax on Capital
Lots of people are pointing fingers at Joe Biden’s plans to raise the tax on capital gains. This means that for rich people, it increased from 20% to 39.6%, according to media reports.
The money the FG will collect from the tax increase would address inequality and fund things -childcare. While for Wall Street, the increase in tax on capital gains could mean the rich selling some of their equity assets.
Elon Musk’s Tweet
What was Elon Musk’s tweet all about? Elon Musk tweet “We are concerned about rapidly increasing use of fossil fuels for bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.” After Elon Musk made the tweet, “Tesla Inc had stopped accepting BTC to purchase its vehicles due to climate concern” BTC dropped to about $50,000 in Asia trading, plunging 17%.
BTC went down from $54,819 to $45,700, its lowest since the 1st of March, within two hours following the tweet shortly after 2200 GMT. It regained half of the drop in the Asian session and last traded about $50,196.
However, Elon Musk company Tesla, made announcements earlier this year that it had bought $1.5 billion of BTC and that it would accept it as payment for cars, this is the very factor behind the digital tokens surging price this year. Musk’s commented that Tesla would not sell any bitcoin and would resume accepting BTC as soon as mining transitioned to more sustainable energy.
Get the latest bitcoin news today from the world’s premier 24/7 news feed. It covers everything related to BTC Including exchange rates, the world economy a money politics. To access BTC today’s news, do these, move to https://www.bitcoin.com.
On the BTC home page, scroll to the top of the page and tap on the “News” tab. It should take you to the news screen. You can now search for the latest BTC news, find out the current price of the BTC.
BTC is not issued by a bank or government unlike the local currency; that is the policy, rates, and economic growth measurements that typically influence the value of currency do not apply to BTC. Here are few things that influence bitcoin prices.
- Demand and supply.
- Cost of production-mining.
- Rewards offered to BTC miners for transaction verification.
- The number of competing cryptocurrencies.
- The exchanges in trades on.
- The rules governing sales.
These are the key factors that affect BTC prices. However, the current BTC price at the time of this write-up is $49,259.22. the price keeps going back and forth.