Jump to content

Bitcoin tumbles below $60,000 as US regulation and China crackdown weighs


Recommended Posts

Bitcoin falls back below $60,000 for first time since Nov 1 | Reuters

By Samuel Indyk. 16th November 2021

Investing.com – The price of Bitcoin fell back below $60,000 on Tuesday for the first time since 1st November as the passage of the US infrastructure bill and a further crackdown on cryptocurrency mining in China weighed on most major digital coins.

US Infrastructure Bill

Yesterday evening the much talked about US infrastructure bill was signed into law by President Joe Biden. The legislation included new rules for the cryptocurrency industry that will expand the reporting requirements for brokers.

Under the new law, digital asset transactions that are more than $10,000 are required to be reported to the Internal Revenue Service (IRS). The recipient of the transaction will need to verify the sender’s personal information within 15 days of the transaction.

The new reporting requirement is scheduled to go into effect from 2024.

China Mining Crackdown

Further weighing on cryptocurrencies on Tuesday was additional comments emanating from China on cryptocurrency mining. The National Development and Reform Commission plans to further crack down on industrial-scale Bitcoin mining as well as any involvement by state companies.

China also announced it would consider punitive measures, such as higher power prices, on companies that flout the rules.

It’s not the first time that China has attempted to rein in the cryptocurrency industry. In June this year, China told banks and other financial institutions to stop facilitating transactions and banned mining currencies.

In September, China announced that all transactions of cryptocurrencies would be illegal.

Data from the University of Cambridge showed that Bitcoin network hashrate in Mainland China went to zero in July as miners moved out of the country. Previously, Mainland China’s share of the global hashrate had been as high as 75%.

It is unclear exactly what the motives are behind China’s blanket ban on cryptocurrencies, but some have suggested that China’s development of its own Central Bank Digital Currency (CBDC) may be why China wants to limit other cryptocurrency transactions.

Technical Picture

After dropping through $60,000, Bitcoin dropped towards its 50-day moving average around $58,750 before finding support and bouncing back towards $60,000.

A break below that level brings in support around $58,200 which is the low seen on 27th and 28th October. Below there and the $57,800 could act as support as it represents the 61.8% fib level from the September low to the November all-time high.

“Bitcoin has broken support at $60k, which could point to more losses unless it can break back above round number resistance,” writes interactive investor Head of Investment Victoria Scholar on Twitter. “Although this is shaping up to be the biggest one-day sell-off since Sept, its only at 3 week lows with a 33% further drop required to test the September trough.”

image.png

At 10:55GMT, Bitcoin was trading lower by 9.2% at around $59,800

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Ever feel like you're stuck in crypto traffic? Slow transactions and outrageous fees are the bane of using blockchains like Ethereum at their core (Layer 1). These networks can only handle a limited number of transactions per second, causing major congestion during peak hours. The result? Frustratingly slow processing and expensive fees for users.   But wait, there's hope! Layer 3 rollups are here to revolutionize the game. Imagine them as express lanes built on top of existing bypass roads (Layer 2 solutions). Layer 2 already helps by alleviating some of the traffic on the main highway (Layer 1). Layer 3 rollups take it a step further, adding dedicated express lanes to these bypass roads for super-fast processing. This innovative approach tackles Layer 1's congestion by distributing the workload across multiple layers, ultimately leading to faster, cheaper, and more scalable blockchain applications.   While specific layer 3 implementations are still under development, some projects are paving the way. Immutable X (IMX token) built on StarkNet (a Layer 2 scaling solution) and dYdX (DYDX token), a decentralized exchange on StarkNet, are both exploring layer 3 rollups to achieve even smoother transactions. Keep an eye out for zkLink Nova, a major player in the scalability game. This cutting-edge technology leverages the strengths of existing solutions to deliver groundbreaking performance. Backed by leading crypto institutions with over $23 million invested in the zkLink ecosystem, zkLink Nova is generating serious buzz ahead of its ZKL token listing on Bitget. Get ready for a smoother ride on the crypto highway!
    • Well, I didn't mine $PIXFI but I was able to make good profit from Bitget Poolx. 
    • This partnership further shows Bitget continuous passion for massive crypto adoption 
×
×
  • Create New...
us