"Investors are getting tired, because Biden has destroyed the crypto market."
During the official presentation of the proposed budget for the fiscal year 2024, the President of the United States (US) Joe Biden supported the elimination of tax subsidies for cryptocurrency investors, real estate businesses including the oil and gas sector.
Biden made his opening proposal on Thursday outlining a budget capable of reducing the deficit by $5.5 trillion over the next ten years.
According to the White House statement, the new budget that will eliminate tax subsidies for crypto investors could save $24 billion.
The subsidy, better known as the “Tax-loss harvesting strategy” allows investors to sell crypto at a loss and take tax losses to reduce their tax burden, but they can repurchase similar digital assets in the future.
While crypto investors are also able to take advantage of tax-loss harvesting, where they need to manage their portfolio and sell their unprofitable holdings in order to reduce taxable income and retain more income.
However, the Internal Revenue Service (IRS) aware of the vulnerability has warned crypto investors not to engage in selling digital assets at a loss and then buying them back.
Most crypto investors were also shocked when President Biden imposed a 30% tax on all electricity used to mine Bitcoin and other digital assets.
The streak saw BTC price come under significant selling pressure as it plunged 7.55% to $20,054 in the past 24 hours as investors rushed to sell their holdings as part of the new budget implementation.
