London time, bitcoin was down over 8% in the last 24 hours at $48,687, according to Coin Metrics data.
The new tax rate would apply to returns on assets held in taxable accounts and sold after more than a year.
Analysts said fears over Biden’s capital gains tax proposal may be extending to crypto investors, who have had a great year with the price of bitcoin having climbed more than sixfold in the last 12 months.
Banks are also trying to allow their clients to get involved in the bitcoin market.
However, concerns over a regulatory crackdown on bitcoin continue to cloud the market.
India is planning to introduce a law to ban the trading or even ownership of cryptocurrencies, Reuters reported last month.
Authorities around the world are looking into how to regulate bitcoin.