{"id":188052,"date":"2021-04-23T11:00:10","date_gmt":"2021-04-23T10:00:10","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=188052"},"modified":"2021-04-23T11:23:10","modified_gmt":"2021-04-23T10:23:10","slug":"3-7-billion-liquidated-as-crypto-markets-react-to-bidens-tax-scare","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/3-7-billion-liquidated-as-crypto-markets-react-to-bidens-tax-scare\/","title":{"rendered":"$3.7 billion liquidated as crypto markets react to Biden’s tax scare"},"content":{"rendered":"

Over $3 billion worth of crypto positions were <\/span>liquidated<\/span><\/i> this morning amidst a broader sell-off, data from multiple sources showed. Some market watchers attributed the drop to a proposal made by US president Joe Biden yesterday.<\/span><\/p>\n

The crypto drop<\/b><\/h2>\n

\u2018Liquidations\u2019 occur when traders borrow excess capital from brokerages\/exchanges (i.e., \u2018margin\u2019 or trading futures) to place bigger bets on the assets they trade.\u00a0<\/span><\/p>\n

They pay a fixed fee for doing so, while exchanges close out these positions at a predetermined price\u2014when the trader\u2019s collateral is equal to the loss on that position. Such a trade is then said to be liquidated.<\/span><\/p>\n

Yesterday, sources close to Biden reported the US would soon propose a new tax law for wealthy investors and traders\u2014charging as much as 43.5% in tax for gains above $1 million. The aftermath was a sell-off in the stock market, followed by a sell-off in the commodities market, and followed by a sell-off this morning in the crypto market.<\/span><\/p>\n

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BREAKING: Stocks sharply drop to new session lows; Bloomberg reports President Biden will propose a capital gains tax as high as 43.4% for the wealthy. https:\/\/t.co\/G2vjJUIJ82<\/a> pic.twitter.com\/6N6hwRWBtl<\/a><\/p>\n

— CNBC Now (@CNBCnow) April 22, 2021<\/a><\/p><\/blockquote>\n