The crypto market is still reeling with the after-effects of President Joe Biden’s plans to impose a 43.4% tax on crypto-millionaires. The Crypto Fear and Greed Index, a tool used to measure market sentiment, returned a value of 31 indicating extreme fear among crypto investors in light of the impending changes.
Just last week, the index stood at 79. A high value on the gauge indicates extreme Greed in the market. Experts are predicting that the markets would plummet further after Bitcoin recorded a monthly low on Friday.
Peter Brandt, a popular commodity trader, called Biden’s presidency ‘a big negative factor’ for Bitcoin. He predicted that a huge supply of Bitcoin will be dumped into the market because of the capital gains taxes that are set to be imposed on the big whales. These taxes may rise beyond 55% in some of the U.S states.
However, Brandt maintained that he still holds a huge Bitcoin portfolio and he is not predicting a bearish market for Bitcoin.
Peter Brandt wasn’t alone in commenting on the situation. He was joined in by Jesse Powell, CEO of Kraken exchange, who asked his followers if moving to Texas would be a good idea in the current scenario.
While the taxes have been announced, there’s still a long way before they are actually implemented.
Any changes would have to be approved by the U.S Congress where the Democrats hold a narrow majority. Republicans are unlikely to support the changes so the final decision can go either way.
Some investors are confident that the chances of such a bill passing through Congress are slim. Thomas Hayes, chairman at hedge fund Great Hill Capital LLC, said that the markets would be down 2000 points if the bill had any chances of passing.
In the aftermath of the Biden administration’s plans, Bitcoin has plummeted to under $50,000 after reaching a record high of $64,863 on April 14.