The cryptocurrency market, including Bitcoin, has seen incredible value changes on Friday, April 23rd. Wild market fluctuations are due to fears of a major tax hike, as many analysts worry that President Joe Biden will raise capital gains taxes to almost double their current rate.

Out of Washington, reports are emerging that for anyone who earns more than $1,000,000, the tax rates could go up to as much as 39.6%. As a result of these fears, Bitcoin saw a 7% slump but then rebounded.

A number of cryptocurrencies were sitting deep in the red early Friday morning, though several of them have bounced back since then. It only took a few hours for most cryptos to return to about their previous level, and the scare had seemingly ended. Market watchers saw a similar pattern occur for U.S. stocks on Thursday in the preceding session.

With only rumors coming in about the tax hike so far and the level of panic that has created, it is expected that we will see much larger changes in the cryptos should a tax hike take place with rates similar to what has already been discussed.

The proposed tax hike may fall on high earners primarily, in an effort to help pay for the Affordable Care Act. The effects of such a hike will have far reaching ramifications across financial markets and will not be limited to just cryptos, as was demonstrated already by the effect the proposed hike was having in stocks.

Crypto values are also being affected by regulation fears, though when those regulations will come into effect is anyone’s guess.