Bitcoin fell 1.77% to $50,269.9 on Saturday, losing $906.75 from its previous close.
Bitcoin, the world’s largest and best-known cryptocurrency, lost 22.5% from its year high of $64,895.22 on April 14.
Ether, a coin connected to the Ethereum blockchain network, fell 4.91% to $2,253.41 on Saturday, losing $116.36 from its previous close.
Bitcoin and other cryptocurrencies suffered heavy losses on Friday, fearing that U.S. President Joe Biden’s plan to raise capital gains taxes would restrict investment in digital assets.
But with social media postings about the plan that damaged cryptocurrencies and individual investors complaining about losses, some traders and analysts said the declines would likely be temporary.
Acceptance of retail and institutional investors as a legal asset class of digital currencies has long been on the rise. This coincided with retail investors, who were stuck at home with extra cash due to the COVID-19 pandemic, turning to online stock and crypto trading.