Warum der Kryptomarkt heute fällt

The cryptocurrency market experienced a significant drop today. The largest cryptocurrency, Bitcoin, lost 4 percent of its value, with the price falling from $66,700 to $64,900.

This drop led to many liquidations. According to the blockchain analytics platform Coinglass, over the past 24 hours, more than 91,000 traders were liquidated, totaling approximately $209 million in liquidations. What is causing this volatility?

American Tax Increases

One possible cause for the drop in the cryptocurrency market can be found in the United States. President Joe Biden has proposed raising the capital gains tax rate to 44.6%, the highest level since 1922. He also proposed a 25% tax on unrealized capital gains.

This proposed increase means that investors will have to pay more taxes on the gains they make from their investments, including profits from the sale of Bitcoin and other altcoins. This could discourage investors from investing or prompt them to liquidate their investments to avoid the tax increases.

Unrest in China and the Middle East

Geopolitical tensions in the Middle East and economic turmoil in China are also mentioned as reasons for the recent volatility. The renewed conflict around Israel is causing increased caution among investors, who often withdraw from risky investments such as Bitcoin and opt for safer options like government bonds.

In China, businesses face high financing costs for their operations, compounded by a general slowdown in the country’s economic growth. This puts additional pressure on many companies to refinance their debts.