With the news of President Joe Biden’s current capital gain’s tax reform, the weekend’s sell-off of Bitcoin was worsened.
Increasing tax rate by 2.6%, up to 39.6% from 37% was revealed by the United States President, Joe Biden. Also for individuals earning more than $1 million, the Biden proposed nearly double taxes on capital gains. The aforementioned refers Current tax rates for long term holders in the tax bracket of $450,000 or more is
Cryptocurrencies are categorized as an asset in the United States by Internal Revenue Services and which invariably points to the fact that crypto transactions and gains are meant to be declared by tax payers.
Jeffrey Halley, senior market analyst at Oanda, told the Wall Street Journal:
“It is clear that Bitcoin is more sensitive to capital gains tax threats than most ‘asset’ classes. The threat of regulation, either directly in developed markets or indirectly via the taxman, has always been crypto’s Achilles heel, in my opinion”