Cryptocurrency prices dropped sharply on October 27th, as the market reacted to the Budget 2022.
The price of cryptocurrency has taken a hit following the release of the UK Budget 2022. The Chancellor of the Exchequer Rishi Sunak announced a new tax on cryptocurrency transactions during his speech, which is expected to raise around £600 million for the government. The tax will come into effect from April 1st, 2022 and will be set at 0.6% on all purchases made with cryptocurrency.
The cryptocurrency market reacted quickly to this news, with Bitcoin dropping by more than 10% within an hour of the announcement. Other cryptocurrencies followed suit, with Ethereum dropping by more than 7%, XRP falling by over 9%, and Litecoin falling by over 11%. It’s unclear whether this drop was due to investors losing faith in their crypto holdings or if it was simply a knee-jerk reaction to bad news about an industry that is still relatively new and unpredictable.
