Peter Brandt: “Biden Presidency May Become A Big Negative Factor For Bitcoin”

Peter Brandt: “Biden Presidency May Become A Big Negative Factor For Bitcoin”

After winning the November 2020 presidential election, pundits were optimistic that President Joe Biden would cause a wave of much-needed regulations and reshape the crypto industry. 

However, in a two-part Twitter thread on April 24, veteran trader and chart guru Peter Brandt has voiced concerns that the Biden administration may have undesirable effects on the firstborn cryptocurrency.

Brandt shared the link to an article by the Wall Street Journal regarding Biden’s capital gains tax proposal. It’s a mere consideration for now, but if the proposal is passed, it will raise the capital gains tax to almost 40% from the current 20% for investors who make $1 million or more. In some U.S. states, Brandt notes that it could be raised to 55%. The tax rate doubling will bring in $370 billion for government spending.

This means that families with huge amounts of unrealized gains will be forced to change their investment plans and make it hard for business owners to pass on assets to their children.

This will arguably be the largest tax increase in history. It’s no wonder the price of bitcoin fell over 10% to below $50,000 after news of Biden’s aggressive capital gains proposal was first revealed. Other cryptocurrencies like ethereum and XRP also felt the heat of the negative sentiment.

Despite his view, Brandt believes that the long-term bullish story of bitcoin is still intact. He concluded:


This Tweet was NOT intended to portray a long-term bearish opinion of Bitcoin ($BTC continues to be one of my largest holdings), but, as a negative opinion of mega-dollar government programs. I am a Bitcoin bull Libertarian.”

As ZyCrypto has reported earlier, other analysts agree that this tax plan will hurt bitcoin in particular. However, this could just be short-term. With extreme money printing on the horizon, more institutions are likely to turn to inflation hedges and safe-haven assets like bitcoin and gold. If this occurs, the price of the flagship cryptocurrency will resume its upward trend in 2021.

Peter Brandt: “Biden Presidency May Become A Big Negative Factor For Bitcoin”
BTCUSD Chart By TradingView

The cryptocurrency was trading around $49,456 at press time.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin above 20K AGAIN! Is Bitcoin Price Bullish Today?

The crypto market is moving still in a sideways trend. Trading cryptocurrencies is being favored by crypto enthusiasts rather than simply buying and holding. The reason for this is that consolidation phases are much more predictable thanks to technical analysis. Crypto traders are loving the current crypto dynamics in the market. After Bitcoin fell to

Breaking: Do Kwon Linked 3,313 Bitcoin To Be Seized? S. Korea Deepens Probe

Trouble for Do Kwon, Terra co-founder seems to be increasing after Interpol issued Red Notice against him. In the latest hit, South Korean authorities have moved on to deepen their probe against the alleged crypto fugitive. Do Kwon to lose his Bitcoins? According to reports, South Korean prosecutors are moving… Read more

Bitcoin Skyrockets As Stock Market Crashes, Is It Breaking Correlation

The crypto market is experiencing a surprise bounce. Bitcoin has rallied from the $18K-$19K range to cross the $20K mark. It has increased by over 5% in the last 24 hours and is currently trading at $20.1K.  However, since the stock markets are dumping, Bitcoin looks to break the correlation…. Read more

Bitcoin and Crypto Defy Wall Street Meltdown With Strong Rally

Wall Street started the week in a correction mode with all three top U.S. indices correcting 1% on Monday, September 26. However, Bitcoin and the broader crypto market have made a surprising move northwards with the BTC price shooting past $20,000 levels. With the recent BTC move, more than $14… Read more