Bitcoin Plummets Below $20K as Biden’s Budget, Silvergate Shock Crypto Market

• Bitcoin (BTC) has dropped below $20,000 due to fears surrounding Silvergate Bank and President Biden’s new tax rule.
• The American government wants to tax Bitcoin miners at a rate of 30%, which could significantly weigh down the mining sector in the US.
• Binance CEO Changpeng Zhao highlights other major concerns for the crypto market such as Silicon Valley Bank troubles, USA suing KuCoin and Huobi token flash crash.

Bitcoin Plummets Below $20K

The crypto ecosystem has dropped in valuation with Bitcoin leading the selloffs. Fears surrounding Silvergate Bank and President Biden’s new tax rule are among the core triggers of the ongoing selloff, pushing the price of premier cryptocurrency Bitcoin (BTC) below the psychologically important support level of $20,000. At present, BTC is trading at spot price of $19,872.38 – down 8.46% over last 24 hours and by more than 11% within past 7-day period.

Biden Administration Tax Plan on Miners

President Joe Biden’s administration has proposed supplementary budget showing plans to tax Bitcoin miners at rate of 30%. This taxation amount is seen as highly unrealistic by many experts who fear it will shift ranking of US as cryptocurrency superpower given global economy’s unfriendly stance towards Web3.0 ecosystem coupled with soaring energy costs that have weakened several dominant crypto miners firms.

CZ Zhao Highlights Major Concerns

Changpeng „CZ“ Zhao – co-founder & CEO of Binance cryptocurrency trading platform – tweeted about slew news that triggered current slump in crypto market after sleeping for just 4 hours: Silicon Vally Bank troubles, USA suing KuCoin, Whitehouse wanting 30% tax on mining electricity & Huobi token flash crash all sent Fear, Uncertainty & Doubt (FUD).

Other Factors Weighing Down Crypto Market

Apart from aforementioned triggers that sparked current selloff, other factors like tightening regulations from various governments across world have added to bearish sentiment across crypto markets with investors fearing further decline in value of digital assets if no corrective measure taken soonest possible time.

Outlook for Crypto Markets

Despite negative pressures weighing on digital currency industry currently, some optimists still see bright future ahead for cryptocurrencies given their decentralized nature which ensure security & privacy for users compared to traditional fiat money system controlled by governments or central banks .