Bitcoin (BTC) drops below $41,000 as Fed rises interest rates and investors approach the tax deadline

Bitcoin already lost 40% of its value since the all-time high of $69,000 on November 10, 2021.

A stock image of pixelated Bitcoin logo on the red background.

After the March rally, when Bitcoin grew 14% from $41,000 to $48,000, the “digital gold” entered the bear market, losing all recent gains. Some analysts claim that this time they know the reason: the one responsible for the BTC fall is a mid-April tax deadline for the US investors. “Next week is tax week – people made a lot of money last year. I mean, a lot,” Mark Yusko, CEO of Morgan Creek Capital Management, said in his interview with Bloomberg. “So a lot of people have to pay taxes. People are doing what they need to do and they’re takings some profits.”

BTCUSD/Nasdaq 100 correlation
BTCUSD/Nasdaq 100 chart. Source:

Another reason for Bitcoin's fall may be Fed’s policy. As Federal Reserve starts raising interest rates, many investors quit crypto for less risky assets. Many experts point out that recently Bitcoin shows a tendency to follow the stock market, and the coin’s correlation with Nasdaq 100 Index increased to record levels.