After China’s new curbs on cryptocurrency, Bitcoin has dropped to a 3.5 month low, falling below the $40,000 mark. A drop of 40% since its all-time high of $64,895 in April 2021. Other cryptocurrencies also took a beating with Ether falling 12% and Dogecoin falling by 18%. Shares in COIN.O fell by 4% in pre-market trading. The recent selling of crypto has brought the market capitalisation of cryptocurrency from $3.5 trillion to $3 trillion.
Bitcoin, following Elon Musk’s tweet, rallied from a three-month low in a session that went back and forth. Musk, however, clarified speculations and said Tesla has not sold any bitcoins. On Monday bitcoin dropped almost 9% but rallied back to more than 5%. Ether dropped to $3,123.94 and dogecoin dropped nearly 7%. Ever since Musk tweeted about Tesla not accepting payments in bitcoins for cars, bitcoin has dropped by almost a quarter.
Major digital currencies posted sharp losses after the news reports said that President Joe Biden was planning to double taxes on capital gains to 39.6% on an annual earning of $1 mn years, Bitcoin slipped to $47,555, falling below the $50k mark for the first time since March. Ether and XRP fell 3.5% and 6.7%, respectively, while dogecoin was down 20% at $0.21. The tax plans also jolted share markets, as investors booked profits and other risk assets.