XRP/USD closed at 1.03397 after placing a high of 1.09311 and a low of 1.02673. Ripple prices fell near 1.000 level over the weekend after reports of Joe Biden’s tax hike plans unsettled markets. Crypto prices saw a sudden plunge after reports in the market that the U.S. administration was planning to increase capital gains taxes on wealthier investors in the following package of economic measures.
According to reports, the marginal rate of capital gains tax could rise to 39.6% compared to a current base rate of 20%, and this would only apply to those earning more than $1 million a year. This report prompted fears that investors could liquidate current stock holdings in the near or medium-term to lock in a lower tax rate on their gains. Hence, cryptocurrencies fell, and Ripple (XRP) followed the trend over the weekend and reached a near 1.000 level.