Bitcoin and Ethereum Drop to New Lows
Bitcoin continues to be firmly planted in the negative territory. On Friday, a report came from China that rattled the cryptocurrency market. According to it, China had promised to curtail the mining business in the country. A statement calling for a crackdown on cryptocurrencies was posted on the Chinese government’s website. As a result, the cryptocurrency market crashed on Friday for the third time in a row.
In the wake of the news coming from China, Bitcoin took the deepest dive since March 2020. China’s promise to tighten its oversight on crypto trading pushed Bitcoin to lows of around $30,000.
Another blow to the leader of the digital coins was dealt by the US Treasury. It announced its plans to ask crypto users to report transactions worth over $10,000 to the Internal Revenue Service (IRS). The US Treasury intends to bring the rule into effect in 2023. Within an hour of the release of US Treasury’s news, Bitcoin shed 8%, sliding from $41,500 to $38,100.
Hong Kong stated a legislative proposal to allow only professional traders with a portfolio of over HK$8 million, which equals $1.03 million, to trade on licensed cryptocurrency exchanges.
The cryptocurrency market suffered significant losses after this unwelcome news had been unveiled. Bitcoin was last seen trading at $37,300. The second-largest digital token Ethereum gave up 11.3% and sank to lows of $2,450. Other digital tokens dived much deeper, experiencing losses in double-digit percentages.