What is the Reason for the Decline in Bitcoin?

Bitcoin, which climbed to $ 65,000 with Coinbase's listing on the Nasdaq last week, began to experience sharp declines.

Bitcoin, which reached $ 65,000 with the listing of Coinbase on the Nastaq, fell sharply to $ 51,000 on Sunday. Today, it has been pulled under 48 thousand dollars. So what is the reason for the decline in Bitcoin? Here are the details ..

Biden's Tax Offer

Experts say the recent decline in the leading cryptocurrency was caused by US President Joe Biden's proposal to raise the tax rate he is considering to take from those who have gained more than $ 1 million in capital gains. Bitcoin, which went in the range of 53-55 thousand dollars after Joe Biden's statements that emerged on Thursday evening, dropped below 48 thousand dollars in the morning hours of Friday and continued this withdrawal. Biden's tax move caused a decline in the US stock markets as well. The S&P 500 and Nasdaq fell 1 percent. US cryptocurrency investors are known to be the most vulnerable group to capital tax, as they have made very serious gains since 2020.

"A Completely Normal and Technical Correction Movement"

On the other hand, according to Ki Young Ju, founder and CEO of the on-chain data analytics company CryptoQuant, this is a completely normal and technical correction. Pointing out that the bears need to be a little more patient and implying that they expect a little more decline, Ki Young Ju said: “Premium prices in Korea have calmed down, but the market is still under too much pressure. The bears should be a little more patient. Do not get me wrong. I see this retraction as a technical correction due to excessive pressure in 'long' positions. The foundation is still very strong. After a few more calm weeks, Bitcoin will go up again.”