Tax hike in the US has collapsed the cryptocurrency market

The American stock market, after a positive session on Thursday, quickly returned to the daily lows and brokethem. This happened amid the announcement that US President Joe Biden is preparing to increase the tax burden on wealthy citizens.

The Dow Jones Industrial Average fell by 400points and ended the day in the red at 322. The S&P 500 also lost earlier gains and by the end of the session was 0.8% below the opening price, the Nasdaq Composite - by 0.7%.

According to media reports, Biden is preparing to raise the capital gains tax for the rich up to 43.4%. Those who earn $ 1 million or more will have to pay 39.6%. Now this value is 20%.

“Biden's proposal essentially doubles the capital gains tax. This is a tangible increase in costs for long-term investors,– said Jack Ablin, founding partner and investment director of Cresset Capital Management.

I look forward to a sale this year if investors feel the law may come into effect next year. ”

Growth sector companies led the decline, including Tesla and Amazon. The iShares S&P 500 Growth ETF fell 0.5%, outperforming the fund's value variance.

“Markets are highly concentrated in a small number of growth companies,said Morgan Creek Capital Management CEO and Chief Investment Officer Mark Yusko.

These stocks have delivered the biggest gains over the course ofthe last few years, and many investors are sitting on significant gains at current prices. Concerns about higher capital gains taxes could motivate selling of such stocks and cause a market correction, so some investors will try to get ahead of the curve by selling or hedging with short positions.”

RiverFront Investment Group chief strategist Doug Sandler said:

“I won’t wonder if the gains tax will doublecapital due to the support of a narrow minority in Congress. This proposal looks too controversial to be approved. However, this is how the foundations for tax increases are being laid. " 

At such moments, the long-awaitedinstitutionalization of bitcoin. The cryptocurrency rate fell by 10% and turned out to be below the psychologically significant mark of $ 50,000. Ether rolled back 7% from its new highs and is trading below $ 2,300.

Singapore-based investment firm Stack Funds, commenting on Sunday's fall in bitcoin, called it a natural course of events, given the volatility of the cryptocurrency, and an opportunity to build up positions.

“Pullbacks happen all the time, and cryptocurrencythe market in this respect is no different from the traditional one. The fundamental picture for Bitcoin's growth remains the same. It can be useful to turn this into a buying opportunity if the investor is looking to increase the share of digital assets in the portfolio. ", - wrote analysts at Stack Funds.

The authors of the Ecoinometrics mailing list noted that Bitcoin is experiencing a pullback inherent in the year following the halving.

“We are now in one of these kickbacks,which usually occur in a bull market after a halving. Minus 20%, five days, nothing special. To be honest, the current course behavior does not look like the maximum of the bitcoin bull market. ", - they added.

 

The founder of the Messari portal, Ryan Selkis, addressed the CEO of the FTX exchange, Sam Bankman-Fried, who donated over $5 million to Biden’s election campaign:

"Sam, call me!"

Where is it more profitable to buy bitcoin? TOP-5 exchanges

For a safe and convenient purchase of cryptocurrencies with a minimum commission, we have prepared a rating of the most reliable and popular cryptocurrency exchanges that support deposits and withdrawals of funds inrubles, hryvnias, dollars and euros.

The reliability of the site is primarily determinedtrading volume and number of users. By all key metrics, the largest cryptocurrency exchange in the world is Binance. Binance is also the most popular crypto exchange in Russia and the CIS, since it has the largest cash turnover and supports transfers in rubles from bank cardsVisa / MasterCardand payment systemsQIWI, Advcash, Payeer.

Especially for beginners, we have prepared a detailed guide: How to buy bitcoin on a crypto exchange for rubles?

Rating of cryptocurrency exchanges:

#	Exchange:	Website:	Rating:
1	Binance (Editor's Choice)	https://binance.com	9.7
2	Bybit	https://bybit.com	7.5
3	OKEx	https://okex.com	7.1
4	Exmo	https://exmo.me	6.9
5	Huobi	https://huobi.com	6.5

The criteria by which the rating is set in our rating of crypto-exchanges:

• Work reliability— stability of access to all functions of the platform, including uninterrupted trading, deposits and withdrawals of funds, as well as the duration of the market and daily trading volume.
• Commissions– the amount of commission for trading operations within the platform and withdrawal of assets.
• Feedback and support– we analyze user reviews and the quality of technical support.
• Convenience of the interface– we evaluate the functionality and intuitiveness of the interface, possible errors and failures when working with the exchange.
• Platform Features– availability of additional features — futures, options, staking, etc.
• final grade– the average number of points for all indicators determines the place in the ranking.

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