Bitcoin is attempting to halt a severe selling spree after collapsing to a 21-month low of $58,093 earlier this week.
The world’s largest cryptocurrency has found tentative footing as buyers step in to defend critical technical levels, offering a glimmer of stability after weeks of pressure that saw the asset struggle to hold the $60,000 mark.
The price action comes against a backdrop of mounting regulatory uncertainty in Europe’s largest economy.
The German government’s draft budget contains a provision that could eliminate the current tax exemption for cryptocurrency holdings kept for more than one year.
The measure, identified in the fiscal planning documents, represents a significant shift in policy that could alter the cost basis for long-term investors in the region.
German crypto investors are facing a dual headwind: the broader market’s volatility and the prospect of a less favorable tax regime.