The cryptocurrency market has just taken a significant hit as Bitcoin dropped below $50,000 for the first time since March, according to CNBC.
The value of the market dropped to $1.81tn on Friday, dropping by a huge 10.26 per cent from Thursday’s value
According to CNBC, over $200bn has been wiped from the digital currency market.
Bitcoin currently stands at $49,465, with Ethereum, the second most valuable cryptocurrency in terms of market capitalisation, slumping by 8 per cent to trade at $2,274.
According to the news agency, the loss suffered by Bitcoin and other cryptocurrencies is driven by fears of a proposed capital gains tax hike by the U.S. President Joe Biden administration.
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It has been theorized that fears over Biden’s capital gains tax proposal may have extended to crypto investors.
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Cryptocurrency has continued to gain acceptance among mainstream investors and companies, such as Tesla Inc, Mastercard Inc.
Goldman Sachs, a multinational investment bank, said it will begin to offer investment opportunities in bitcoin and other digital assets.
However, Nigeria remains among nations like China, Morocco and Lebanon, which oppose the trade of cryptocurrencies by unfriendly government policies through their apex banks. See the list of countries here.
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