Today, most assets and investments showed red numbers amid widespread panic fueled by rumors that US President Joe BIDEN intends to submit a proposal to the Congress for a tax increase on capital gains. This means that the rate will almost double compared to what investors are currently required to pay. In a Bloomberg article, Biden's idea is to tax millionaire investors at least 43.4% to support social programs.
The president's proposal, according to insiders, applies only to those who make more than $1 mln in less than a year and own assets for the same time. These are the main crypto whales that hold a significant amount of money. In addition to the federal law, investors must also pay the existing surtax on investment income and other fees as required by the laws of each state. Bloomberg explains that millionaire investors in New York and California will suffer the most.
As a result, a group of investors closed their positions as quickly as possible to avoid paying a shocking tax. The current price is playing precariously with the support set during the last fall. If bitcoin doesn't recover, the next support could be as little as $47,000 or even $45,000. At the time of this writing, the price of bitcoin was $48,341.