The price of Bitcoin slumped below $60,000 on Tuesday as the cryptocurrency market was hit by renewed crackdown on cryptocurrency mining in China, and the signing of the US infrastructure bill into law.
This is the first time Bitcoin is trading below $60,000 since November 1, 2021. The most popular cryptocurrency and the largest by market capitalization fell to $58,655.9 on Tuesday.
Although it has recovered to above $60,000, it is still 8.37% down according to the data on the Investing.com Index, at the time writing this report.
Bitcoin is not alone in the crash as Ethereum is down 10.60% to $4,240.84. Cardano is losing 8.94% and it is trading at $1.8798, while Solana is down 9.99% in the last 24hours, trading at $220.776.
Binance Coin is losing 10.46% at $577.11, Vechain is down 14.90% at $0.145278. Dogecoin and Shiba Inu are down 9.42% and 10.44% to $237952 and $0.00004848 respectively.
In China, the National Development and Reform Commission said it will crackdown on industrial-scale Bitcoin mining.
The US President Joe Biden on Monday signed the infrastructure bill which includes new rules for the cryptocurrency industry into law.
The new legislation requires that digital assets transactions valued at more than $10,000 will be reported to the IRS.
Under the new law, the recipient of the transaction is also obligated to verify the personal information of the sender within 15 days of the transaction. The new reporting requirement will take effect from 2024.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.