Bitcoin drops to $ 60,000, Ether drops amid large crypto drop

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Cryptocurrencies fell on Tuesday, with Bitcoin slipping towards the $ 60,000 level and Ether touching one of its lowest levels this month.

Bitcoin, the largest digital token, was down 4% to around $ 61,400 as of 1:32 p.m. in Singapore. Ether, ranked second, slipped to 6.8%. The global crypto market capitalization has fallen 7% in the past 24 hours to $ 2.8 trillion, according to tracker CoinGecko.

“We saw the signing of the infrastructure bill in the United States, which triggered a massive sell-off from traders concerned about regulation and taxation,” said Hayden Hughes, CEO of Alpha Impact, a platform. form that allows investors to copy the strategies of other crypto traders.

Source: Bloomberg

He also voiced concerns over China’s continued regulatory crackdown. The country will explore the possibility of imposing punitive electricity prices on companies involved in cryptocurrency mining, National Development and Reform Commission spokesperson Meng Wei said during the report. a press conference.

The new tax reporting requirements for digital currencies are part of President Joe Biden’s $ 550 billion infrastructure bill. China, meanwhile, has imposed a broad crackdown on the crypto industry for many months, in part due to the energy consumption and potential environmental fallout from Bitcoin mining.

Bitcoin has more than doubled this year, while Ether has increased sixfold. The two hit record highs last week amid a fervor for digital assets driven by speculative demand and controversial arguments that they can hedge inflation risks.

Some technical indicators had suggested that the strong advance in cryptos was due to a pause. Digital tokens are in any case notoriously volatile.

It “would be unusual to continue making progress without corrections,” said Vijay Ayyar, head of Asia-Pacific with the Luno crypto exchange in Singapore. He argued that “we are seeing a healthy pullback” after a protracted rally.

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