Bitcoin Leads Price Sell-Off Across Crypto Markets as Biden Tax Plan Bites

“Bitcoin slipped on Friday as reports of U.S. President Joe Biden mulling a tax hike on wealthy Americans drew stronger selling pressure in the spot market.

The biggest cryptocurrency traded well below the 100-day simple moving average support of $49,470 during the European hours, marking the first breakdown of the widely tracked technical line in six months and extending the recent sell-off from record highs above $64,000.

Other alternative cryptocurrencies such as ether (ETH, -4.41%), binance token, XRP (-6.11%), dogecoin (DOGE, -11.26%), suffered bigger pullbacks, having outperformed bitcoin in recent days. Dogecoin slipped nearly 25%, while others witnessed 14% to 18% drawdowns against bitcoin’s 11% drop.

“The market has been trading extremely risk on due to Federal Reserve’s policy that supported risk trades. Now the reality of the Biden administration hits, and the market is going to start worrying about taxes & regulations,” Phillip Gillespie, CEO of the over-the-counter liquidity provider B2C2 Japan, told CoinDesk.”