After a massive sell-off in the cryptocurrency markets amid reports that US President Joe Biden proposed hiking the capital gains tax last week, the Biden administration has almost called for a doubling of tax rates for the “very, very wealthy”.

A senior Biden official said only 0.3% of US taxpayers would be affected by higher investment taxes under the new capital gains tax scheme.

“There is mounting evidence that in recent years there has actually been a lot of profit at the top, which is what they call income versus rental rates, rental rates, etc. A Biden administration official said Monday in an interview with the Financial Times that taxing people who are Doing a good job in economics is a way to ask for something else.

Under Biden’s plan, the capital gains tax rate for the wealthy would rise to 39.6% from the current base rate of 20%. For those earning $ 1 million or more, the new maximum interest rate will be accompanied by a current surplus tax, resulting in a capital gain and a US dividend rate of 43.4%.

A Biden administration spokesman noted that the new plan is in line with the Biden campaign position, “which is that we had to fundamentally reform those parts of the law that affected the richest, richest, or wealthiest Americans.”

Cryptocurrency and US stock markets saw a big sell-off after Biden suggested amid growing speculation and research and development – gains, uncertainty and suspicion – that investors would sell stocks while awaiting higher tax rates. Bitcoin (BTC) faced strong selling pressure, causing the price to drop below the $ 50,000 support level on Friday, reaching as low as $ 47,500. The US stock market also fell sharply on Thursday, but recovered quickly after that.

Several investors, including billionaire venture capitalist Tim Draper, have criticized the new tax plan. Draper, a prominent advocate of cryptocurrencies, has argued that a capital gains tax of 43.4% “could kill the golden goose in America”, while California’s taxes could fall to 56.4%, which “means death to create jobs.” According to the investor, Bitcoin is potentially a safe haven for anxious investors. “The antidote to repressive government and racial taxation is … Bitcoin,” Draper wrote on Twitter on Thursday.