For the first time since November 1st, Bitcoin’s valuation dropped below $60,000 in overnight trading as the passing of the US infrastructure bill and a continued crackdown on cryptocurrency mining in China pulled the market down for the most popular digital coins.
President Joe Biden signed the US infrastructure bill, which includes language that expands the reporting requirement for crypto brokers and even goes so far as to redefine what a broker is, into law yesterday evening and the ripples were quickly felt within various crypto markets. The legislation includes the requirement that any transaction of digital assets greater than $10,000 be reported directly to the Internal Revenue Service and puts the onus on the recipient of the funds to verify the sender’s personal information within 15 days of the transaction. Though these requirements are not set to go into effect until 2024, the language they encompass poses a serious problem for crypto traders and the community as a whole.
China’s recent comments to ramp up their crackdown on industrial-scale Bitcoin mining and to punish any state companies involved with the digital currency further added to the market downturn. In comments originating from The National Development and Reform Commission, China promised punitive measures, such as higher power prices, for any company that actively engages in prohibited activities involving Bitcoin and other digital currencies. China has been attempting to eliminate and control the cryptocurrency industry since early 2021 when they first told banks to stop facilitating transactions in crypto and banned mining. In September, China took the unprecedented move to make all transactions involving cryptocurrencies illegal.
All eyes will be on Bitcoins price action today after dropping below $60,000 and falling towards its 50-day moving average before finding support and bouncing back to the $60,000 level overnight.
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