With reports of Biden’s plans to raise capital gains taxes shaving billions off the cryptocurrency market, market analysts evaluate the move’s impact.
Cracks are forming in the cryptocurrency space. The overall crypto market lost more than $200 billion in Friday’s trading session after reports surfaced that President Joe Biden would seek to raise capital gains taxes on millionaire investors to fund other policy initiatives. Market analysts were largely split on the move’s impact. Here’s how five of them, including CNBC’s Jim Cramer, reacted: Tim Draper, founder and managing partner of Draper Associates, raised concerns about productivity: „I just think, what are they thinking? Because, actually, higher taxes tend to lower revenue. So, right now, they need a lot of revenue. They’re printing money. And if you bring in higher taxes, it lowers the motivation of the people. If you are working towards some goal, you’re a start-up and you’re saying, ‚I’m going to build something of great value‘ and then you realize the government takes more than half of it, you’re working through July before you even have started to work for yourself and that motivation starts to dwindle.“ Blair Effron, partner and co-founder of Centerview Partners, advised waiting to see Biden’s tax package in its final form: „I think we ought to step back and see how the overall tax package comes together.
