Bitcoin Falls Below 50,000 dollars Within 12 Hours

Bitcoin fell below 50,000 dollars for the first time since march. Bitcoin (BTC) declined for the seventh time in eight days, extending losses after President Joe  Biden was said to propose almost doubling the capital-gains tax for the wealthy. JP Morgan recently warned about further downslide after bitcoin fell back from its record high of $64,870 on april 14th.The move has got mixed reactions by people on twitter, researcher Mira Christanto noting the markets have only retraced from the all-time high by 23%, which is way less than what the market saw in 2017 which was an astonishing 35%.

Peter Schiff, known for being skeptical towards crypto tweeted, ‘’Now that bitcoin is back below $50k I think it's time for Apompliano to tweet out $1k milestones on the way down the way he did on the way up’’. Pompliano responded by saying ‘’Bitcoin is up 600% in last year. Gold is up 3% in the last year. No more tweeting until gold can beat inflation, Peter!”

Matt Maley, chief market strategist for Miller Tabak + Co said, “One of the biggest things you have to worry about is that the things with the biggest gains are going to be most susceptible to selling”. “It doesn’t mean people will dump wholesale, dump 100% of their positions, but you have some people who have huge money in this and, therefore, a big jump in the capital gains tax, they’ll be leaving a lot of money on the table.”

Ethereum (ETH) also fell about 8 % in the last 24 hours. Although ETH has outperformed BTC in recent days, rallying up to new all time high $2600 on april 22. Yesterday’s highs saw Ethereum and bitcoin trading at its best levels since 2018. Ether has dropped 11% over the past seven days, while bitcoin went down by 21% in the same period.

Bitcoin has been facing some heat since last week. Turkey has banned use of bitcoin, Buying something with Bitcoin (BTC) in Turkey will soon be illegal, and the topic of crypto payments has become a political debate since the Central Bank of the Republic of Turkey’s April 16 announcement that it will forbid the use of cryptocurrency as a payment method. The regulation, which will go into effect on April 30, also bans the use of digital wallet providers as fiat on-ramps for crypto exchanges.

Bitcoin is predicted to reach $100,000 to $3,50,000 by the end of 2021. Max Keiser is one of Bitcoin’s most outspoken bull, calling for $100,000 since the asset was trading at just $1. His $100,000 target though was for the end of 2020, meanwhile, $400,000 is a long-term goal due to the coronavirus and a comparison to gold.