The price of Bitcoin, the world’s most popular cryptocurrency, depreciated by 10.28 per cent in the last 24 hours, falling below the $50,000 mark for the first time since early March.
The currency exchanged $49,416.29 at 15.32 PM Nigerian time, data from coinmarketcap.com showed.
Analysts suggested the fall followed concerns over U.S. President Joe Biden’s plan to raise capital gains taxes, expected to curb investment in digital assets.
“Now whether that happens or not, many bitcoin investors are probably sitting on some substantial capital gains if they stayed the course over the past year,” Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA, was quoted by Reuters as saying.
Data on coinmarketcap.com showed that the digital currency has declined by 19.22 per cent in the past seven days, with 48.56 per cent increase in trading volume.
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The price of Bitcoin has slumped by 23.41 per cent after touching a new all-time high of $64,863.10 on April 14.
Some traders and analysts, however, say the fall is temporary, arguing that after the coin hit high, traders were cashing out.