Bitcoin sinks below $50,000 as cryptos stumble

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Bitcoin and other cryptocurrencies suffered hefty losses on Friday on concern that US President Joe Biden’s plan to raise capital gains taxes will curb investment in digital assets.

The selloff came after reports that the Biden administration is planning a raft of proposed changes to the US tax code, including a plan to nearly double taxes on capital gains to 39.6 percent for people earning more than $1 million.
Bitcoin, the biggest and most popular cryptocurrency , slumped 5 percent to $48,8867, falling below the $50,000 mark for the first time since early March, while smaller rivals Ether and XRP fell around 7 percent.
The tax plans jolted markets, prompting investors to book profits in stocks and other risk assets, which have rallied massively on hopes of a solid economic recovery. Levies on investment gains were reported to be in line for record increases.