Cryptocurrency sales have pushed Bitcoin and Ether to levels they have not had in more than a week this week. This is due to China’s new mining restrictions and the expected tax consequences of the newly signed U.S. Infrastructure Bill.
The price of Bitcoin has fallen -1.61% in the last 24 hours, to $60,586. Ether on the blockchain fell 9% to $4,289. Similar losses were observed across the sector. At the beginning of November, Bitcoin reached its all-time high of $68,990. Ether also set a record, rising to $4,865.57.
According to Steen Jakobsen, chief investment officer at Saxo Bank, the main reason for the weak mood is two events. China has again said it intends to regulate the crypto industry. Discussion punitive electricity prices for companies involved in crypto mining. At the same time, the U.S. Infrastructure Bill is putting new tax demands on the industry.
Meng Wei, a spokesman for the National Development and Reform Commission, said the agency would launch a full-scale crackdown on commercial miners. Wei noted that state-owned entities engaged in crypto mining could face punitive electricity prices.
President Joe Biden recently signed a $1 trillion bipartisan infrastructure bill. Investors are concerned about a change that would require an account for more than $10,000 in digital asset transactions.
Bitcoin Future and Predictions
Cryptocurrency sales in Asia began after comments by Twitter CEO TWTR -1.59% Ned Segal. Segal said investing corporate money in crypto assets for a microblogging site makes no sense. He explained that it is necessary to change the investment policy and preference more volatile assets and less volatile securities.
According to Naeem Aslam, AvaTrade’s critical market analyst, investors need to watch whether Bitcoin falls below the 50-day simple moving average, below $58,000, which is potential price support. Bitcoin could experience significant growth if it stays above this level.
Aslam explains that no one wants to see another cryptocurrency because the horrific consequences of the previous crash were pretty obvious. Moreover, he noted that now traders should be hoping for a strong rally. They are especially considering that at this time of year, an intense crypto winter action is visible. Aslam added that cryptocurrencies typically grow by more than 80% at this time of year.
The end of the year is gradually approaching, with a little over one month left before Christmas. We wonder if Bitcoin will recover this year and how long the crypto winter will last.