The crypto panic is over for now

Last week many crypto owners went into a panic as bitcoin, followed by the entire altcoin market, took a nosedive. People messaged each other. “What just happened?” In the end, the answer appeared to be an announcement about capital gains tax from President Biden. It was that simple!

Bitcoin dipped as low as $47, 875, and retail investors wondered if it would drop further. Those that were able to hold their nerve were repaid by seeing the market slowly climb again over the weekend, with BTC now at $52,735 at the time of writing on 26th April. Ethereum and the other altcoins also making strong gains, with the entire market in green today.

Analysts agree that President Joe Biden’s proposal to double capital gains taxes on high-income individuals was the catalyst. Consantine Kogan, partner at investment firm Wave Financial said, “My take right now is that the Joe Biden tax has something to do with it. Sellers probably jammed the market, and bids disappeared. U.S. participants are just a portion of the market but probably the wealthiest in both corporate and retail.” Elie Le Rest, partner at quantitative trading firm ExoAlpha, commented, “Bitcoin broke the $50,000 support, going back to early March price levels with a drawdown of 25%. Holding ground at $50,000 would confirm the accumulation pattern by institutional investors at or below $50,000, leaving room to grow for bitcoin in the coming weeks and months.” That’s good news.

Coindesk reports: “Total crypto market capitalization, as provided by charting software TradingView, fell from $2 trillion to as low as $1.7 trillion, a $300 billion plunge that exemplifies the fickle nature of blockchain-based assets. As of press time, total cryptocurrency market cap is recovering but still down 1.7% over the past 24 hours.”