Major coins were trading in the red on Wednesday evening following reports from the President Joe Biden propose changes to cryptocurrency taxation in an upcoming budget plan.
| Cryptocurrency | Gains (+/-) | Price (8:30 PM EST) |
|---|---|---|
| Bitcoin | -2.35% | $21,736 |
| Ethereum | -1.93% | $1537 |
| Dogecoin | -3.48% | $0.071 |
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What happened: Apex cryptocurrency Bitcoin (CRYPTO: BTC) dropped to its lowest level in more than three weeks, trading at around $21,700. As investors grapple with economically worrisome jobs and price data, the Federal Reserve governor says Jerome Powell revived his stance on an expansionary monetary policy to counter inflationary pressures.
Ethereum (CRYPTO: ETH) fared similarly to Bitcoin and was also down approx. 1.93% to change hands just above $1,530. Dogecoin (CRYPTO: DOGE) was trading at $0.071, down 3.48% in the last 24 hours.
At the time of writing, the global crypto market capitalization was $996 billion, down 2.22% in the last day.
US stocks rallied on Wednesday as investors sought to recover from the previous day’s losses triggered by Powell’s suggestion that interest rates may remain high for an extended period. The S&P 500 climbed 0.14%, while the Nasdaq Composite rose 0.4%, indicating greater risk appetite from traders.
See more: Best Crypto Day Trading Strategies
News Highlights: According to the Wall Street Journal, the new crypto tax policy proposed by Biden is estimated to raise an estimated $24 billion and is part of his 2024 budget plan to reduce federal budget deficits by $3 trillion over a decade.
Silvergate Capital Corporation (NYSE:SI), the holding company for Silvergate Bank, announced Wednesday its decision to immediately wind down the bank’s operations and voluntarily liquidate the bank.
According to a report from CoinDesk, the crypto exchange Gemini has lost a major partner – banking giant JPMorgan. The report cited a person familiar with the matter who was unable to provide further details about the decision.
Analyst Notes: “Bitcoin continues to teeter around three-week lows as Wall Street tries to get a handle on what the Fed’s rate hike campaign will do to the economy. The news across the cryptoverse spurs no reasons to buy this dip,” said Edward Moyasenior market analyst at OANDA.
Michael van de Poppe, founder and CEO of trading firm Eight, observed that short-term holders’ average purchase price for Bitcoin has crossed above the average purchase price for Bitcoin, suggesting that “people are FOMOing (fear of missing out) into the markets” as well as “a dip in the market.” To take advantage of this opportunity, Van de Poppe said investors should pay attention to “red lights” and use them as opportunities to buy instead of green ones.
Short-term owners avg. purchase price crossed above #Bitcoin avg. purchase price.
It says two things;
– People FOMO into the markets.
– This is a drop after markets continue to $35-40K.Unless most, use red candles to buy instead of green.
c/ @therationalroot pic.twitter.com/eMV6ng9y3p
— Michaël van de Poppe (@CryptoMichNL) March 8, 2023
Santiment said prices remain difficult to predict amid growing rumors of another big impending Fed rate hike.
Prices remain difficult to predict amid growing rumors of another big one imminent #Fed interest rate increase. Our latest community member insights discuss some of the key metrics to be aware of, considering the “buy fear, sell euphoria” concept. pic.twitter.com/lVBOwcAH9A
— Santiment (@santimentfeed) March 8, 2023
Read Next: Crypto Bank Silvergate Capital Liquidates: Stocks crash in after-hours trading
