The fall comes after Biden introduced a number of proposed changes to the U.S. tax code on Thursday, including a plan to raise capital gains to more than $ 1 million and tax almost double the capital gains to 39.6 percent.

There have been reports on social media that cryptocurrencies are being cracked down on. At the same time, traders and analysts say the decline is temporary, with institutional investors in retail and digital currencies recognizing it as a legitimate asset class.

Chris Weston, head of research at Pepperstone Markets Ltd, a Melbourne-based foreign exchange broker, said: “This is what everyone is talking about right now, referring to Biden’s tax plan.

Biden’s plan to increase taxes Capital gains in New York cryptocurrency trading continued during the Asian session, but traders say calm will return soon.

“Western funds began to aggressively withdraw from Biden’s tax plan,” said Avi Felman, chief trader and portfolio manager at Block Tower Capital, a New York-based cryptocurrency and blockchain investment firm.

“Gradually, news-driven sales tend to change direction,” he added.