Threatening regulation in China and the USA sends the Bitcoin price down again
Bitcoin. (Photo: Shutterstock)
Bitcoin had just recovered to some extent from its fall in the price of the past few days, and things were going downhill again. The threat of stricter regulation in China and the USA was to blame.
After the rally of the past few 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.
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State control over crypto transactions
In the USA, for example, there will be more state control over transactions with cryptocurrencies in the future, as US President Joe Biden announced. Accordingly, all transfers worth 10,000 US dollars or more are to be reported to the US tax authorities IRS in the future. That reports among other things The Verge.
This is to prevent illegal activities, including tax evasion, which are related to cryptocurrencies. Biden’s proposal therefore provides additional resources for the IRS.
Bitcoin price collapses by over $ 5,000
On Friday morning, the Bitcoin price then fell from almost $ 42,000 to less than $ 40,000. 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 is the case CNBC writes. China’s state bank is now working on a digital currency itself.
