US President Joe Biden’s plan to increase the capital gains tax caused market panic a few days ago. The bitcoin (BTC) and altcoin prices also went down with a significant correction. Investment legend Peter Brandt expects that Biden’s plans for the shorter term could turn out to be bearish.
Biden wants to significantly increase the capital gains tax. In some cases this could almost double for wealthy individuals to 39.6% and in some cases as much as 43.4%. At the moment this is still 20%; the government of Biden is unfair.
Peter Brandt, a veteran in the investment world and well-known Bitcoin supporter, spoke out about the news yesterday. In a tweet he wrote the following:
“Looking ahead. Biden’s presidency could become a major negative factor for Bitcoin. A large BTC offering will hit the market to get ahead of the capital gains tax that will exceed 55% in some US states. ”
Brandt thinks that should the tax increase come, which is not yet certain, many investors may still quickly sell their bitcoin to get ahead of the increase. Due to the increasing supply on the market, the BTC price could fall. Many of his followers thought through this tweet that Brandt now has bearish long-term expectations. However, that is not the case, Brandt explains:
“Wow!!! This Tweet was NOT intended to represent a long-term bearish view of Bitcoin (BTC remains one of my biggest investments), but as a negative view of megadollar government programs. I am a Bitcoin bull Libertarian. ”
In addition to bitcoin, Brandt often talks about altcoins. He recently recognized a very rare pattern on the ripple (XRP) chart. Shortly after, XRP did indeed take to the air!