Is another “crypto winter” upon us? Bitcoin and ether crash

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It’s not a good day if you are a crypto trader. All major cryptocurrencies are crashing this morning. As of this writing, CoinDesk shows Bitcoin is down 8%, Ethereal is down 9%, Dogecoin is down 8%, and Shiba Inu is down 6%. The other major cryptocurrencies are also all in the red, down from 7% to 14%.

So what is going on? CoinDesk says two main things could scare the crypto markets this morning. First, Twitter CFO Ned Segal said investing the company’s money in cryptocurrencies “doesn’t make sense right now” (via The Wall Street Journal). Segal cited crypto’s global volatility as the reason for avoiding digital tokens. And given how the crypto markets are reacting to his comments, the volatility argument looks strong.

But another reason cryptocurrencies are crashing today could be due to the infrastructure bill President Biden enacted yesterday. As CoinDesk notes, this bill requires brokers to report traders who trade more than $ 10,000 worth of crypto to the IRS. However, the bill does not fully define what a “broker” is and many fear that it will include bitcoin miners, which would create red tape when it comes to tax reporting.

This morning’s crypto sale may also scare investors with bad memories from December 2017 to February 2018, when the crypto markets were destroyed in a multi-month sell-off. As Naeem Aslam, chief market analyst at AvaTrade, told MarketWatch, “The biggest fear among crypto traders is if the crypto winter is here… No one wants to see another winter of. crypto because it is difficult to forget the disastrous consequences of the previous one. “

The 2017-18 “crypto winter” saw bitcoin drop from an all-time high of over $ 17,700 to a low of around $ 7,500 in less than two months. Bitcoin hit a record high of just over $ 68,500 last week. To date, it has fallen to just over $ 60,400 per coin.

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