Bitcoin’s market cap is down $ 150 billion while the price of the asset hits a new monthly low at $ 58,000, as we can see on our latest Bitcoin news today.
Bitcoin is down another 4% on the past day and as the largest cryptocurrency, its decline has caused panic on the market. Bitcoin’s market cap fell $ 150 billion, while global crypto market cap dropped 5% shortly after BTC fell to its lowest level in more than a month, at $ 58,000. It’s been a pretty bad day for the market as most of the unrelated tokens unrelated to Metaverse have fallen in price. On the other hand, Shiba Inu as a meme token has lost 19% of its value in the last 24 hours.
Binance Coin rebounded and lost 8% in the process, SOL fell 9%, but ETH, XRP and Cardano all fell 4%. The entire crypto market is worth around 13% less than it was at the end of last week. At that point, US President Joe Biden signed a $ 1.2 trillion infrastructure bill that included new tax reporting requirements for crypto custodians, as well as taxpayers, miners, wallet providers, speakers and software developers. Cryptocurrency lobbyists believe the language of the bill is harmful and mandate that all non-liable parties provide the IRS with customer information that they cannot obtain.
The reporting requirements are expected to stay in place through 2024, and all senators have proposed new ideas for how the bill will be finalized. Senators Cynthia Lummis and Ron Wyden are calling for clear wording to stipulate that the provisions do not apply to non-custodial actors, while Senators Ted Cruz want to repeal the provisions entirely along with the Infrastructure Bill. Investors may feel that the bill in DC is setting an ominous tone as regulatory scrutiny increases and is considering the idea of holding BTC as a long-term store of value. .
The law signed by Biden won’t cause Bitcoin to go down, but the two factors can be slightly correlated. According to the data site Cryptowatch, BTC and ETH have traded against each other by a factor of 0.84 in the last 30 days, with -1 being the opposite direction and 1 being a perfect alignment. For BTC-XRP and ADA, the coefficients are above 0.60.