Bitcoin News

Bitcoin prices fall 5%; Finger of blame for new Senate plan to tax digital currencies


The non-stop trend of Bitcoin price increase ended after 10 days with the price falling below the level of $ 40,000. Experts believe that the main reason for this price reduction is the new US Senate plan, which includes taxes on digital currency transactions.

to the Report The recent rise in the bitcoin price in the last days of July has put pressure on sellers who are liquidating their assets as tensions over the US Senate Infrastructure Investment Bill escalate.

Daniel Kim, chief financial officer at Maple Finance Australia’s Decentralized Lending Institute, said the price returned from a high of $ 42,400 on Sunday to recent levels near $ 39,500, most likely due to There are doubts about the US Senate infrastructure investment plan.

The previous version of the bill sought to increase information reporting regulations and extend the definition of “broker” to all groups associated with digital currency. It should be noted that the previous plan also included decentralized exchanges.

Commenting on the US Senate proposal, Kim said:

This [طرح] Eventually, there was a great deal of fear, uncertainty and uncertainty that led users to withdraw their assets from digital currency platforms, reducing market liquidity and creating price volatility.

Kim added that while the FTX exchange bitcoin stock had doubled in July, Bitcoin Bainance inventory fell to 70,000 units that month, causing market uncertainty.

Bitcoin’s recent uptrend towards $ 42,000 resistance was supported by significant buyer pressure, and the 10-day consecutive price increase, the longest in eight years, finally ended on Sunday.

The price of Bitcoin has fallen 5.5 percent in the last 24 hours.

Bitcoin falls 5% after US Senate bill to tax digital currency transactions
Bitcoin Price Chart (1-Day Bitcoin / Dollar Market View)

The US Senate Infrastructure Investment Bill, previously discussed, plans to further increase tax collection to fund the $ 1 trillion needed to develop US infrastructure, of which $ 28 billion is to be raised. Provide a tax source for digital currency transactions.

The bill has been widely criticized for its connection to the digital currency community. Some argue that the bill is too pervasive and could include much of the digital currency industry in the United States.

The updated version of the bipartisan bill, released on Sunday, limits the definition of “broker” in the old version to all digital currency operators to those who only provide digital currency transfer services.

Contrary to the previous plan, the amended version of the bill does not explicitly include decentralized exchanges, miners, network node operators, digital currency software developers, and similar groups.

The market situation of Bitcoin option contracts shows major differences compared to the instant market. The Bitcoin Base Exchange has said that the Bitcoin option market is reaching its highest volume of open contracts as it approaches the July expiration date. Open-ended contracts are optional contracts that have not yet expired.

In his newsletter, Coin Bass writes about the increasing demand for options with a deal price of $ 40,000 to $ 50,000.

The price of high-end coins, which are in the top 20 currencies in terms of market value, has fallen like Bitcoin, with Ripple, Chainlink and Theta experiencing the biggest declines, with prices falling by 5 to 7 percent.

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