On Friday Weedned, the crypto market crashed like a domino when the US suggested taxing cryptocurrency at a rate of 30%. As the board's leader, Bitcoin experienced pressure from a selling frenzy and fell by more than 9%. Ethereum and other cryptocurrencies also fell sharply. Their weekly losses have now been increased. Investors are panicking because of the tax rate's huge impact on mining and trading digital assets.
If enacted, this tax proposal would have many negative effects on the crypto market. Nevertheless, it is also thought to have negative effects on the nation's economy because the sector is a significant employer and source of investment.
The worldwide cryptocurrency market was valued at USD 931.21 billion on CoinMarketCap at the time of writing, down 6.82% from the previous day. In the total market, Bitcoin's dominance decreased by 0.48% to 41.54%.
Bitcoin's value was USD 19,828.06 and was falling by 8.84%. While Ether dropped to USD 1,396 levels by at least 9.5%. Other cryptocurrencies include Dogecoin lost over 10.4%, XRP dropped by 7.3%, Cardano fell by 3.4%, Polygon by 7.8%, and Binance's token BNB lost over 6%.
The weekly performance of Bitcoin has recently decreased by almost 12%, and that of Ethereum has decreased by more than 11%. While BNB and Cardano fell by 6% and nearly 9% over the course of seven days, respectively, Polygon and Dogecoin have lost approximately 14% and 15% of their value.
Shiba Inu was the most popular cryptocurrency on Friday, but it has dropped by over 8% in just one day. "Any firm using computing resources, whether owned by the firm or leased from others to mine digital assets would be subject to an excise tax equal to 30% of the costs of electricity used in digital asset mining," the Department of the Treasury stated in its supplementary budget explainer paper on Thursday.
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