Bitcoin (BTC) has refreshed its daily lows after seeing a sharp reversal from the $55k level along with the US stock markets following President Joe Biden’s new tax proposal. The benchmark cryptocurrency is currently trading at the $52k area on most exchanges.
Biden intends to increase capital gains tax to 43.4% for Americans with income exceeding $1 million to fund his spending ambitions.
The Biden administration has announced plans to produce $1.5 trillion for “human infrastructure,” which includes subsidies for child care, free community colleges, and many more.
As expected, the proposed “tax the rich” initiative came under heavy criticism from many wealthy Americans. Renowned venture capitalist Tim Draper stated that the administration’s tax plan could kill “the golden goose that is America.”
The billionaire added that Bitcoin is the “antidote” for government oppression and excessive taxation.
That said, Wall Street reacted immediately to the news with a massive plunge.
Meanwhile, Coinbase (NASDAQ: COIN) has dropped below the $300 line for the first time since it began trading on the Nasdaq (April 14). This plunge is coming after Cathie Wood’s Ark Investment Management purchased about 1.5 million shares (COIN).
At press time, Wall Street’s big three, Nasdaq 100, S&P 500, and the Dow, are trading down by -1.4%, -0.8%, and 0.7%, respectively.
Key BTC Levels to Watch — April 22
Bitcoin continues to plunge to lower levels as bulls fail to sustain a recovery. The benchmark cryptocurrency peaked at $55,500 today, where more supply came into the market and forced the price lower.
The cryptocurrency appears to be maintaining a directional bias along the descending tripwire, which could drive Bitcoin to the $50k area if it goes unabated. At the moment, bulls appear to have ceded dominance to bears, as BTC barrels towards $50k.
Meanwhile, our resistance levels are at $53,400, $55,000, and $56,000, and our key support levels are at $52,000, $51,400, and $50,000.
Total Market Capitalization: $2.01 trillion
Bitcoin Market Capitalization: $991 billion
Bitcoin Dominance: 49.4%
Market Rank: #1
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