The global markets crashed today on the heels of Biden’s tax plans.
Bitcoin Crashes Below $50k
The world’s largest cryptocurrency by market cap bitcoin (BTC) today witnessed a steep crash shortly after U.S. President Joe Biden’s speech where he hinted the government is mulling a plan to nearly double taxes on capital gains to 39.6 percent for people earning more than $1 million annually.
Shortly following Biden’s speech, the global markets plunged.
At the time of writing, bitcoin is trading below $50k at $48,597, according to data from CoinGecko.
Other high-cap altcoins such as ether, XRP, Binance Coin (BNB), and Cardano (ADA) all experienced a sharp slide in their token prices with all of them down over 10 percent in the last 24 hours.
Commenting on Biden’s tax plan, Chris Grisanti, chief equity strategist at MAI Capital Management noted:
“The devil will be in the details. Will it be retroactive to Jan. 1 of this year and then you wouldn’t need to sell right away? Will it be the beginning of next year? That all begs the question, will it get passed?”
“There are a lot of moving parts. One thing investors can be sure of is that taxes are going up and we have to at least partially pay for all the money we’ve been spending on stimulus.”
As far as bitcoin technicals are concerned, the BTC RSI is currently under 30 which signifies territory of being heavily oversold. This could, in fact, be a bullish sign for BTC as according to the RSI metric the top cryptocurrency is undervalued at its current price in the high $40ks.
Leveraged Longs get Liquidated
According to data from Bybt.com, almost $4 billion worth of longs were liquidation in the past 24 hours involving over 600,000 traders. The largest single liquidation order happened on Huobi-BTC valued at a staggering $11.28 million.
At the same time, however, the BTC dominance in the crypto market has finally tumbled below 50 percent at the time of writing. Currently, BTC dominance sits at 49.4 percent, per data from CoinGecko.
As previously reported by BTCManager, a steep fall in BTC dominance usually tends to be a precursor to a full-blown altseason. Whether the same will happen this time, only time will tell.
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