Bitcoin’s market cap sheds $150 billion while the price of the asset hit a new monthly low to $58,000 level as we can see today in our latest Bitcoin news today.
Bitcoin dipped another 4% over the past day and as the biggest cryptocurrency, its downward momentum brought the market alogn with it. Bitcoin’s market cap sheds $150 billion while the global crypto market cap declined 5% right after BTC slipped to its lowest point over a month to $58,000. It has been quite a bad day for the market as most of the tokens not associated with the Metaverse all dropped. Shiba Inu on the other hand as a meme token lost 19% of its value in the past 24 hours.
Binance Coin bounced around and lost 8% in the process, SOL dropped by 9% but ETH, XRP, and Cardano all fell by 4%. The entire crypto market is worth about 13% less than it was over the weekend. This was when US President Joe Biden signed a $1.2 trillion infrastructure bill that includes new tax reporting requirements for the crypto custodians but also miners, wallet providers, speakers, and software developers. Crypto lobbyists deemed the bill’s language disastrous and mandated all non-custodial actors to provide customer information to the IRS which is information they are not able to get.
The reporting requirements are not scheduled to go into effect until 2024 and all senators already proposed new ideas to fix the bill. Senators Cynthia Lummis and Ron Wyden wanted to clarify the wording in order to stipulate that the provisions don’t apply to the non-custodial actors while senator Ted Cruz wanted to repeal the provisions along with the infrastructure bill in its entirety. Investors may feel the bill set an ominous tone in DC as the regulatory scrutiny ramps up, entering heavily into the idea to hold BTC as a long-term store of value.
The signed Biden bill didn’t really cause Bitcoin to drop but the two elements could be slightly correlated. According to the data site Cryptowatch, in the past 30 days, BTC and ETH moved hand in hand by a coefficient of 0.84 where -1 is equal to the opposite and 1 means perfect alignment. For BTC-XRP and ADA, the coefficients were above 0.60.
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