Bitcoin reached the indicators of the beginning of March, having fallen to $49,000 on the Binance crypto exchange. Although, it would seem, even at night, the crypto community was stirred up by the news about the fall to the level of $50,000.
As noted in the major American media, one of the reasons for the fall of the main cryptocurrency on the market could be Joe Biden's proposal regarding the capital gains tax rate (also known as the “tax for the rich”) almost doubled - to 43.4%. Naturally, this news turned out to be painful for traditional currencies and stock exchanges as well. American analysts, however, are convinced that this proposal has minimal chances of passing the Congress.
Although most representatives of the crypto community are still confident that the main problem was the sharp drop in the hash rate due to the power outage in China and the shutdown of large mining centers against the background of this.
Bitcoin had a chance to level out on April 17. But on the same day, a potential exit above $60,000 was rejected, and the value of the main crypto-asset fell by almost 20% on the largest exchanges in just a couple of hours.
The dominance of Bitcoins has decreased by 10% to 51% at the moment, while at the beginning of the year this figure was 70%. If the flagship cryptocurrency fails to consolidate resistance around $55,000 in the coming weeks, then we will face an even sadder scenario with a potential fall below $40,000 on Binance. JPMorgan analysts are also not encouraging, reporting a possible “bearish period” if Bitcoin fails to return to $60,000.
Twitter, meanwhile, is also raging. The fall of cryptocurrency below $50,000 did not go unnoticed for many. One of Messari's analysts remained positive, though. Mira Cristanto argues that the 23% retracement we've seen lately looks much less threatening than what happened during the bull rally in 2017, when losses exceeded 35%.
The well-known crypto skeptic Peter Schiff also decided to gloat, ridiculing Anthony Pompliano's tweet that Schiff "should not write anything until gold beats inflation." In response to his ridicule, he immediately received the fact that gold has grown by 0% since 2011.
Now the price of Bitcoin continues to fall and is already $48,450 on Binance, but the “mini-winter” is unlikely to last long. Therefore, as crypto enthusiasts like to joke: “Don't miss the Bitcoin discount season!”
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