As of Tuesday, 16th November 2021, Cryptocurrency has dropped below $60, 000 for the first time since September when it last dropped. Also, making Etherium to reach its lowest within a month.
According to some analysts, this fall could be attributed to the bill signed by president Joe Biden, which is the infrastructure bill- The infrastructural bill change the requirements to Tax-Reporting for digital currencies.
Part of the new requirement is the submission by all companies the names, addresses, and phone numbers of their customers to the IRS department, the gross proceed from sales, and the capital gains or losses.
Hayden Hughes, the chief executive officer of Alpha Impact, “We’ve seen the US infrastructure bill gets signed, which has initiated a selloff from traders who are concerned about regulation and taxation.
“It’s something that Bitcoin is always going to be so volatile toward — the more there is an attempt to regulate it, to control it,” said Fiona Cincotta, senior financial markets analyst at City Index. “It just takes the edge off its draw.”
Prior to this fall, crypto has been gaining a lot. “The extreme volatility that the market is prone to could lead to a potential domino effect if more negative news were to emerge and take prices to new lows.” According to Walid Koudmani, an analyst at XTB Market.
Also, China’s new regulation also contributed to this sliding. “The country will study the option of levying punitive power prices for companies that are involved in cryptocurrency mining, National Development and Reform Commission spokeswoman Meng Wei said at a press conference.”
Below are some of the leading crypto coins that were affected by China’s new regulations.
- Bitcoin (-6.59%),
- Etherum (-7.64%)
- Binance Coin (-7.90%)
- Tether (+0.24%)
- Solana (-6.48%)
- Cardana (-6.21%)
- XRP (-7.30%)
- Avalanche (-5.08%)
- Terra (10.50%)
The dropping could be easily channeled to the banning of crypto as a means of exchange in the bank and also stopping its mining among many others by China government.