Bitcoin plunged more than 5 percent to give $40,000 but it is holding the $39,000 mark after US government announced plans to raise cryto tax.
Bitcoin recorded $39,848 as of 12 p.m. on the 2nd (GMT+8), a 5.74% drop from 24 hours ago, on Coin Market Cap, a global coin market relay site.
Bitcoin fell to the early $39,000 range a few hours ago, but it has secured $39,000 range.
Bitcoin began to plunge as news spread earlier that the U.S. government, which is pushing for large-scale infrastructure investments (social overhead capital), would raise taxes on cryptocurrency to raise funds.
Bitcoin, which had originally maintained the $41,000 range, once threatened to collapse $39,000 as the $40,000 range was broken, but it seems to be keeping the $39,000 line as low-priced purchases flowed in.
Bitcoin has turned downward as news spread that both houses of the U.S. and Senate are planning to raise about $28 billion of infrastructure investment funds worth about 550 billion dollars through tax increases related to cryptocurrency, according to Forbes, a U.S. economic media.
Before the news, Bitcoin rose for the 11th day and held the longest rally in eight years.