Bitcoin is one of the esteemed cryptocurrencies of all time, and no one would ever be able to take the crown off of its head for being the first digital asset ever developed, shared on blockchain technology, and being traded as a cryptocurrency. It has completed various feats over the years, such as the trade volume is the largest for Bitcoin, the market cap is phenomenal, and it has definitely made the adoption of blockchain technology and cryptocurrencies a whole lot faster.
But recently, it has hit a series of obstacles that are stopping it from reaching the zenith, and due to this very fact, its price has taken a heavy toll. At present, Bitcoin is trading at $50k, and for some time, it was even below that line which had investors and crypto enthusiasts worried, only a week or two before Bitcoin was soaring at an all-time high of $63k. These recent developments result from Joe Biden, the American president pushing hard on pinning down taxes on capital gains for the wealthy people of the state, which has got the crypto market and investors a little beat up.
Bitcoin is Hitting a Hard Time due to Current Political and Technical Developments
This, mixed with the coal mine disaster that did happen in China only a week ago, proved to be a travesty for Bitcoin’s mining operation; the cryptocurrency’s hash rate declined significantly, which compelled it to kind of flow down from its all-time high to a mere $50k trading value. The authorities did close the coal mine and the mining operation temporarily and are looking forward to investigating the situation before resuming the mining operation.
This decline in the hash rate and the new impositions made by Biden is not coming as a cool breeze to the world of cryptocurrency, especially for Bitcoin. The availability of Bitcoin for trading on exchanges is a bit of an issue that did keep this crypto flying at optimum horizons, but the current tax resolution by Joe Biden might crack some Bitcoin tokens flying back into the loop, allowing the less capital-intensive investors have a go with Bitcoin. But this doesn’t explain the fate of Bitcoin in the end by any margin.