Bitcoin and other digital coins plunged on Friday, wiping over $200 billion of the value of the cryptocurrency market.
Bitcoin and other digital currencies plunged on Friday as a proposed capital gains tax hike from U.S. President Joe Biden led to a flurry of selling, wiping out more than $200 billion of value from the market, according to data from CoinMarketCap.
By midday EST, bitcoin was down 7.3% at $49,730, according to Coin Metrics data—the first time bitcoin has traded below $50,000 since early March. Elsewhere, Ether fell to $2,320, down 8%. XRP, the fifth-biggest cryptocurrency, plunged 16%.
President Biden is expected to raise long-term capital gains tax for the wealthiest Americans to 43.4%, including a surtax. The new rate would apply to returns on assets held in taxable accounts and sold after more than a year.
The news triggered a sell-off in stock markets overnight Thursday, with all three major U.S. indexes ending the session in the red.