Bitcoin is the world’s largest cryptocurrency that has every time hit new records. But currently, the price of this largest cryptocurrency has slumped by half after hitting the all-time high record of $65000 in April 2021. There’s so much going on in the crypto market because of its highly volatile market. The market is getting positively affected by every other thing. The prices of cryptocurrencies are falling after Internal Revenue Service called the lawmakers to give them complete authority to tighten the rules on transfers made in the cryptocurrency market. This made bitcoin’s price fell below $32000 on 9th June, whereas the other popular digital coins like Dogecoin and Ethereum are also declining.
This digital currency was last traded at $32600, and it dropped around 3% more, according to data collected by the crypto exchange. Even Ethereum piece dropped around 8%, and it falls below $2500, whereas Dogecoin is traded at $0.31 currently. In the past 24 hours, even other cryptocurrencies like Litecoin and Ripple dropped more than 4%. The IRS chief said that the government needs to give an apparent constitutional authority regarding the tax agency to gather all information on transfers made in crypto space valued at more than $10,000 and go unnoticed. If you want to become a bitcoin trader, you must follow the patterns to learn trading by downloading the app from https://bitcoin-champion.com.
After the news of tighter regulations, Rettig said that the market capitalization of cryptocurrencies is more than $2 trillion, and there are over 8600 exchanges located online worldwide. The cryptocurrencies are designed to be independent of the government to stay away from the radar screen, which will be a big challenge for the cryptocurrency market now. In the meantime, the publicly traded company, MicroStrategy Inc, is selling its junk bonds to buy more bitcoin and is now targeting to hit $500 million.
Is the record of daily bitcoin transactions dropping?
The average of daily bitcoin transactions has been dropped by 2 17,000 as of 6th June, and this is the lowest record observed since mid-2018. Even the average of active bitcoin addresses on the network has fallen to around 940,000 on 7th June, and the total number of new wallet addresses has also declined. This shows the fading interest of investors in the most prominent cryptocurrencies that comes when there’s a decrease in the price or market of bitcoin. The process has corrected around 50% from the recent high that was made in April 2021 of $64,000.
At present, on 8th June, bitcoin is traded at $32,728, which is around 9.45% down, and it has experienced a 24-hour low in June of $32,494 and a high that was recorded in April of $36,744. So there’s a significant fall in the cryptocurrency market, and along with bitcoin, other coins like Dogecoin, Ether, Litecoin, and more are down around 2-4%, whereas if we talk about XRP, it has dropped almost in double-digits.
After the tremendous growth of bitcoin in 2020, which was expected to stay for an extended period was only picked in the opening few months of 2021. The main reasons behind the backdrop of bitcoin were Tesla and China’s crackdown that affected bitcoin’s growth. As a result, the bitcoin market is weak currently, but the weakness isn’t isolated in the crypto market. The analysts suggest that the moves in the price of bitcoin could be a great part of the bigger rotation made by institutional investors to stay away from tentative bitcoin trades.
What are regulatory concerns?
Bitcoin and all other crypto assets have faced enhanced inspection from regulators worldwide, as now they have become a part of the financial market. As a result, the government crackdown on popular cryptocurrencies can reduce cryptocurrencies and crypto winter. In addition, the countries that are still in their developing stage can face harsh crackdown on cryptocurrencies, which may depict cryptocurrencies as a threat to an entire monetary system.
Even if we talk about China, it is developing its cryptocurrency that will be run or controlled by the government by reasserting all the rules against digital currencies. In May 2021, the Chinese Banking Association banned all the financial institutions from putting a pause on offering cryptocurrency services for bitcoin trading.