In the previous 24 hours, the price of bitcoin has dropped over 10%, falling below $60,000 before rebounding.
According to Darius Sit, co-founder of crypto trading business QCP Capital, the dip appears to be prompted by the infrastructure bill signed by US President Joe Biden yesterday. The law includes tax reporting measures requiring cryptocurrency exchanges to report information to the IRS and their customers, including capital gains.
According to Sit, the market is using the news about the infrastructure bill “as an excuse to take profit after trading all-time highs across the board.” The behavior was not surprising, according to Sit, because “leverage levels were fairly high as well.”
According to TradingView, bitcoin is currently trading at roughly $60,400. It reached a high of more than $66,000 yesterday. The price of ether (ETH), the second-largest cryptocurrency, has also declined more than 7% in the last 24 hours and is now trading around $4,200.
According to CoinGecko, the total market valuation of the crypto industry has dropped over 10% in the last 24 hours to around $2.72 trillion.
According to Sit, the macro-environment appears “a little shakey” due to high levels of inflation. Last month, inflation in the United States reached a three-decade high of 6.2 percent.