After the rally of recent months, a fall in the cryptocurrency price was probably only a matter of time . The downturn triggered – at least in part – by Tesla’s announcement that it would not accept Bitcoin as a means of payment after all, cost the crypto market several hundred billion dollars.
Bitcoin alone lost 40 percent of its value in a short period of time. After a temporary recovery, the Bitcoin price collapsed again on Friday. The trigger this time is the threat of stricter regulation in the important markets of China and the USA.
State control over crypto transactions
In the US, for example, there will be more state control over transactions with cryptocurrencies in the future, as US President Joe Biden announced. Accordingly, all transfers with a value of US $ 10,000 or more are to be reported to the US tax authorities, the IRS, in the future. The Verge reports, among others.
This is to prevent illegal activities, including tax evasion, which are related to crypto currencies. Biden’s proposal therefore provides for additional resources for the IRS.
Bitcoin exchange rate drops by over 5,000 dollars
On Friday morning, the Bitcoin rate then fell from almost 42,000 to below 40,000 dollars. The course of the largest crypto currency then posted an even stronger slide in the afternoon. According to Coinmarketcap, it went downhill by around $ 5,000 to a good $ 36,500 within two hours.
The second slide is mainly due to China’s announcement that it intends to take even stronger action against mining and trading in cryptocurrencies. According to Chinese Deputy Prime Minister Liu He and the State Council, China wants to protect the financial system, as CNBC writes. Meanwhile, China’s state bank is working on a digital currency itself.
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The second slide is mainly due to China’s announcement that it intends to take even stronger action against mining and trading in cryptocurrencies. According to Chinese Deputy Prime Minister Liu He and the State Council, China wants to protect the financial system, as CNBC writes. Meanwhile, China’s state bank is working on a digital currency itself.
