Post winning the November 2020 presidential election, experts were positive that President Joe Biden would introduce a wave of much-anticipated regulations and reshape the cryptocurrency industry. Nevertheless, in a two-part Twitter thread on April 24, veteran trader and chart guru Peter Brandt has voiced that the Biden administration may have disadvantageous effects on bitcoin.
Peter Brandt voiced his concerns on the current tax plans, estimating that they could negatively impact bitcoin. Brandt opined that in future, the Biden presidency might become a great negative factor for bitcoin. Large bitcoin supply will come to market to succeed capital gains taxes which will surpass 55% in some U.S. states. Brandt further asserted that his judgment did not indicate he was long-term bearish on bitcoin. He was further pointing to himself as a “Bitcoin bull Libertarian”.
Comprehensive Details About Biden’s Capital Gains Tax Proposal
Moreover, Brandt shared the link to an article by the Wall Street Journal about Biden’s capital gains tax proposal. However, it’s a consideration for now, but if the proposal is accepted, it will raise the capital gains tax to over 40% from the recent 20% for investors who earn $1 million or more. The tax rate doubling will lead to $370 billion for government spending.
This suggests that families with vast amounts of unrealized gains will be compelled to substitute their investment strategies and make it troublesome for business proprietors to pass on assets to their kids.
The latest improvements could view the rich being taxed massively in the future. It’s no surprise that the price of bitcoin dropped 10% to below $50,000 following news of Biden’s aggressive capital gains proposal was first published. Other cryptocurrencies such as ethereum and XRP also handled the heat of the negative thought. Jesse Powell, the CEO of Kraken exchange, also reflected on the latest developments. Questioning his Twitter followers that if relocating to Austin, Texas would be a great plan.
Moreover, Biden has passed various large stimulus packages, which have witnessed stimulus checks being paid to U.S. citizens. Earlier, it was believed as a bullish scenario for the crypto market. However, it appears that the most advanced tax implications could hurt the future development of the crypto market. The U.S President is also in early conversations about regulating the market. With the recently elected SEC (Securities and Exchange Commission) Chairman in Gary Gensler guiding the way.