After a record high, cryptocurrencies fell on Tuesday as Bitcoin for a short time dipped below $60,000, and Ether touched its new low this month.
The largest digital token fell 8.2% to $58,661, the worst intraday decrease since September 24. Ether, rated second, lost more than 10% of its value.
The market cap of crypto dropped some 10% in the past 24 hours to $2.7 trillion globally.
According to an analyst at XTB Market, Walid Koudmani said that after several days of gains, Bitcoin, which was at its all-time high, is now dropping low. There is a potential for a domino effect in the market due to extreme volatility, and with more negative news to come, the market will dip further. Technical indicators had hinted that the recent strong run in the notoriously volatile market was about to end.
According to some analysts, President Joe Biden’s signing into law on Monday regarding new tax-reporting mandates for digital currencies that are a part of the $550 billion infrastructure bill also contributed to the fall of the cryptocurrencies market.
According to Hayden Hughes, CEO of Alpha Impact, a social-trading platform, the US infrastructure bill passed, triggering a selloff among traders concerned about regulation and taxation.
Hayden Hughes also expressed fear that China’s regulatory crackdown would continue. At a press briefing, Meng Wei, a spokeswoman for the National Development and Reform Commission, stated the country would look into the prospect of charging cryptocurrency mining companies exorbitant electricity charges. Meanwhile, on Monday, Ned Segal, Chief Financial Officer of Twitter, said that investing the company’s cash into cryptocurrencies like Bitcoin made no sense.