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Bitcoin plunges on US tax fears Cryptocurrency ether pulled back sharply from a record high and rival bitcoin also fell on Friday amid speculation that US President Joe Biden’s plan to raise capital gains taxes will curb investment in digital assets. The drops came after Biden on Thursday unveiled a raft of proposed changes to the US tax code, including a plan to nearly double taxes on capital gains to 39.6% for people earning more than US$1-million. But while social media lit up with posts about the plan hurting cryptocurrencies, and individual investors complaining about losses, traders and analysts said declines are likely temporary amid growing retail and institutional investor acceptance of digital currencies as a legitimate asset class.

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