Cryptocurrency market spirals down because of bad news
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The cryptocurrency market plunged as a result of an influx of negative news from every possible front. President Biden, while outlining his budget plan for 2024, was said to propose high taxes on electricity used for cryptocurrency mining. Additionally, the tax break on crypto asset loss deductions is to be eliminated, and capital gains taxes are to be raised.
As if that weren't enough, Federal Reserve Vice Chairman for Supervision Michael Barr said on Thursday that banks should be cautious about investing in "risky" cryptocurrency assets, noting that regulators will soon guide managing these assets.
"Banks should take a cautious approach to engage in activities involving crypto assets and cryptocurrencies. We would probably see it as risky and imprudent for banks to directly hold crypto assets on their balance sheets," Barr noted in prepared remarks delivered at the Peterson Institute for International Economics.
