Bitcoin slid below $60,000 and Ether dipped close to one month low as Cryptocurrencies fell on Tuesday.
Bitcoin, the largest digital token dipped as much as 6% to about $59, 200 on Tuesday, while second-ranked Ether tumbled as much as 6.8% to $4, 189.
Global crypto market cap has dropped some 7% in the past 24 hours to $2.8 trillion, according tracker CoinGecko.
Some analysts attributed the broad market dip to new tax-reporting requirements for digital currencies that are part of the $550 billion infrastructure bill, which President Joe Biden signed into law Monday.
“We’ve seen the U.S. infrastructure bill get signed, which has initiated a selloff from traders who are concerned about regulation and taxation,” said Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform.
The Bitcoin and Ether rallies have started to ebb
Huges also cited concerns about China continuing its regulatory crackdown. The country will study the option of levying punitive power prices for companies that are involved in cryptocurrency mining, National Development and Reform Commission spokeswoman Meng Wei said at a press conference, Bloomberg reported.
Bitcoin has more than doubled this year, while Ether is up about sixfold. Both scaled records last week amid a fervor for digital assets driven by speculative demand and controversial arguments that they can hedge inflation risks.
Some technical indicators had suggested the strong run in cryptos was due for a pause. Digital tokens are notoriously volatile.
It “would be unusual to keep moving up without corrections,” said Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore. He argued that “we’re seeing a healthy pullback” after a prolonged rally.
Bitcoin was trading at around $59,400 on Binance at 11:36 am, WAT.