Because of the recent comments from the chief financial officer of Twitter, the bitcoin, either and other popular Cryptocurrencies are facing selling pressure. These comments are considered anti-crypto comments, and therefore, these are souring the mood for cryptocurrency investors. On the contrary, the widespread belief in the dollar is still the same and therefore, it is strengthening the dollar index entirely and making sure that it remains in the bearish forces. On the other day, bitcoin experienced a decrease of 4.3% and stood trading at a value of $60,800. On the contrary, the second most popular cryptocurrency was experiencing a loss of 5.3% and stood at a value of $4320. This information is given according to the coin desk data, and also, other cryptocurrencies have experienced a more significant loss.
According to Asia, when the trading hours for cryptocurrencies begin, Twitter’s CFO commented in the Wall Street Journal. He said that simply investing your money into cryptocurrencies is none of us right now. Also, he quoted that cash holdings are not supposed to be invested in the bitcoins because this doesn’t make any sense. The CFO also mentioned that volatility in bitcoin prices and a significantly less amount of accounting rules are among the most important reasons the company has stopped investing and diversifying into cryptocurrencies. Following the negative comments from Twitter’s CFO, there was a negative impact on the bitcoin prices and the other cryptocurrencies. Twitter is a social media handle, and it has a significant influence on the different aspects of the market.
Even though Twitter never predicted or expected to enforce or indulge in investments, the CFO of Twitter stepped into the market to provide a reason for going against cryptocurrencies. Earlier, the traders were always ready to take the risk of making profits out of cryptocurrencies, but now, they have a reason to lower the risk from the table. Also, their attention was drawn to the rising dollar and, along with it, the controversial tax report requirement introduced by the United States. You can read more about the bill on a portal https://bitqt-app.com/.
Recently, the President of the United States signed a bipartisan infrastructure bill on Monday. Unfortunately, according to the rules and regulations in the deal, the requirements for becoming a cryptocurrency broker are further complicated and also, there is an increase in the tax structure. It is something that is going to make it even worse for cryptocurrency brokers and investors.
According to the infrastructure bill, the brokers in the United States will have to provide their internal revenue service and information about making transactions. If they are making any transaction of an amount higher than $10,000, they will have to provide all the requirements to the government. Earlier, there was barely any tax imposed on the miners and small brokers, but now, the definition is about to change. It is problematic for the cryptocurrency investors in the United States that the term brokers will now bring under some of the miners and not operators into the tax hammer. They will have to face challenges as investors.
Due to the increased rules in controversies with complexities in trading structure for brokers, it has been a breakdown for some people. In addition, due to this bill, many investors have withdrawn their investment from the cryptocurrency market, leading to a lower volume of reading recently.
Only a few companies have acquired bitcoin as a reserve asset, and the name of such companies are square, MicroStrategy and Tesla. For these companies, the widespread corporate adoption of bitcoin value remains entirely elusive for the date. Also, an analyst for the cryptocurrency is told bitcoin ponds that due to the relatively high prices of the bitcoin and a high degree of volatility, transactions towards the heaven assets for bitcoins are a complete risk factor.
Recently, China is also working for withdrawing cryptocurrency mining within the geographical boundaries of the country. It is all because China believes that cryptocurrencies are a threat to the financial system of the country. Apart from that, it leads to a very high amount of energy consumption which is one of the most prominent reasons for the shortage of electricity supply in many country sectors. Hence, China’s national development and reforms commission decided to consider punitive electricity supplies to the institutions dealing in cryptocurrency mining. Hence, analysts believe that it can also be affected because there could be a massive drawdown in bitcoin prices in the short term.
