--- title: "Bitcoin Crashes, Wiping Over $200 Billion Off Crypto Market" description: "The value of fell down to just below $50,000, the first time it did so since early March. Analysts suggest it could be related to Biden's capital gains tax." date: "2021-04-23" modified: "2021-04-23" authors: - name: "Victor Tangermann" job_title: "Senior Editor" link: "https://futurism.com/authors/victor" url: "https://futurism.com/the-byte/bitcoin-crashes-wiping-over-200-billion-off-crypto-market" categories: - "Bitcoin" - "Blockchain" - "Cryptocurrency" - "Future Society" tags: - "bitcoin" - "cryptocurrencies" - "cryptocurrency" - "the digest" --- # Bitcoin Crashes, Wiping Over $200 Billion Off Crypto Market ![The value of fell down to just below $50,000, the first time it did so since early March. Analysts suggest it could be related to Biden's capital gains tax.]() *\Image: Image via Pixabay / Futurism\* ## Bitcoin Drop The value of Bitcoin, along with several other digital currencies, plummeted on Friday, following US president Joe Biden's announcement of a significant capital gains tax hike, [*CNBC* reports](). The value of the digital currency fell to just below $50,000, its lowest since early March. According to CoinMarketCap, the drop represented the wiping out of $200 billion in market value — a startling reminder of cryptocurrency's persistent volatility. ## Taxation and Regulation It's not entirely clear what caused the drop, but it's reasonable to suspect that Biden's plans to raise the capital gains tax for the wealthiest Americans to 43.4 percent may have led to a wave of selling, as *CNBC* suggests. Analysts had also [warned earlier this week]() that the value of Bitcoin is about to drop significantly after hype surrounding [the public listing of cryptocurrency exchange Coinbase]() caused values to soar. "Bitcoin headed South today after President Biden signaled that he wanted to raise capital gains tax in the US," Jeffrey Halley, senior market analyst, [told *Global News*](). "Now whether that happens or not, many bitcoin investors are probably sitting on some substantial capital gains if they stayed the course over the past year." Halley also noted that taxation and market regulation "remain the crypto markets' Achilles Heel." Despite the dip, though, Bitcoin is still up 65 percent since the start of this year. ## Cashing In Not everybody is convinced Biden's tax plan was to blame. "I don’t think Biden’s taxes plans will have a big impact on bitcoin," Ruud Feltkamp, CEO at automated crypto trading bot Cryptohopper, told *Global News*. "Bitcoin has only gone up for a long time, it is only natural to see a consolidation," Feltkamp argued. "Traders are simply cashing in on winnings." **READ MORE:** [Over $200 billion wiped off cryptocurrency market in a day as bitcoin plunges below $50,000]() \[*CNBC*\] **More on Bitcoin:** *[Analyst Predicts 50 Percent Drop in Bitcoin Value]()* ## Author I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida. ### Author social links [Bluesky]()