It comes as a surprise that Bitcoin (BTC) has been falling continuously for the last three days and is now trading below $60,000.
According to Coinmarketcap.com, all top cryptocurrency coins such as Ehtereum, Bitcoin, and famous meme coins such as Dogecoin (DOGE) and Shiba Inu have fallen over 10 percent over the last seven weeks.
In the seven-week period, Bitcoin was at its highest on November 15, clocking $66,281.57, while on November 17 it went below $60,000 for the first time in two weeks.
There are several reasons for this drop. Some of them are mentioned here for the investors’ sake of convenience.
The first and the major cause is the recent actions carried out by US and China. This cause may have been responsible for the declining Bitcoin prices. China with the objective to cut down crypto mining from the country has started a crackdown on mining.
- China Global Television Network quoted the country’s National Development and Reform Commission (NDRC) as saying. “We will focus on cleaning out state-owned units involved in this type of virtual currency and bitcoin mining, reiterating that all cryptocurrency-related activities are illegal. This kind of currency does not have the same legal status as legal currency,”
- The US Infrastructure Bill signed by Joe Biden at an event at the White House on Monday includes new crypto legislation which requires brokers to issue a 1099-B which will be notified to the IRS. In other words, the gains will now come to the public and there will be tax implications and hence the market is reacting in such a way.
- Another major reason is the US Securities and Exchange Commission (SEC) is currently not accepting a spot bitcoin exchange-traded fund (ETF), which would likely have seen billions poured into the crypto trading market.
- According to the founder, and CEO of Cashaa, a cryptocurrency platform, Kumar Gaurav, “The correction in Bitcoin and other cryptocurrencies could be due to a mix of factors such as profit booking, China crackdown on cryptocurrencies, and tax provision in the US infrastructure legislation,”
This is all about the reasons. We hope you have found it informative. For more such updates, get in touch with us regularly.