Look out below.

Bitcoin (BTC) just plummeted to less than $50,000 after testing $61,556.

All as markets react to Joe Biden’s proposed capital gains tax hike on the wealthy.  In fact, Bloomberg reports Biden wants to nearly double the tax rate to 39.6% from 20%.

“The Biden administration is looking to raise the top marginal income tax rate to 39.6% from 37%, whilst also doubling capital gains tax to 39.6% for people earning more than $1m. Tax the rich, hand it out to the poor. Sounds like furlough, but on a permanent basis,” Neil Wilson, chief markets analyst at Markets.com said, as quoted by Bloomberg.

In addition, according to Jeffrey Halley, senior market analyst at Oanda, as quoted by Financial News, “It is clear that bitcoin is more sensitive to capital gains tax threats than most ‘asset’ classes. The threat of regulation, either directly in developed markets or indirectly via the taxman, has always been crypto’s Achilles’ heel, in my opinion.”

It’ll be interesting to see where Bitcoin ends up at this point.

While BTC has become severely oversold on RSI, MACD, and Williams’ %R, it broke through its 50-day moving average.  It’s also now below double bottom support and could test $45,058.  Should it fail there, too, the next line of support is just under $35,000.

In addition, when it does bottom out, look to buy oversold crypto mining stocks, like Marathon Digital (MARA), Riot Blockchain (RIOT), Canaan (CAN), HIVE Blockchain (HVBTF), and SOS Inc. (SOS).