The drops came after Biden on Thursday unveiled a raft of proposed changes to the US tax code, including a plan to nearly double taxes on capital gains to 39.6 percent for people earning more than $1 million. 

But while social media lit up with posts about the plan hurting cryptocurrencies and individual investors complaining about losses, traders and analysts said declines are likely temporary amid growing retail and institutional investor acceptance of digital currencies as a legitimate asset class.

The cryptocurrency market is running like an out of control Ponzi scheme at the moment, with "investors" spending their time talking it up to encourage the price to rise.

Regulation is pretty much certain because while some people are making a lot of cash out of this form of currency, no one is benefiting.  While the sharemarket was all about gambling, there was at least a pretence that it is an investment in a company.