The price of bitcoin and other currencies fell to lower levels after the tax bill on digital currency businesses was finalized. Experts believe that such corrections are normal during uptrends, and if prices do not continue to fall below current levels, we can expect the uptrend to resume in the coming weeks.
to the Report CoinDesk, the digital currency market yesterday, was largely declining under the finalization of the US Infrastructure Investment Act. This controversial law includes clauses that require businesses operating in the digital currency field to file tax returns.
The bill requires all businesses known as “digital currency brokers” to report transactions in which they are involved with the same current tax code. Proponents of the digital currency industry have previously been concerned that the definition of a digital currency broker in the scheme is too broad, involving miners and some other businesses that have virtually no role in facilitating transactions.
Hayden Hughes, CEO of the Alpha Impact platform, wrote in his newsletter on Tuesday:
[اخیراً] We saw the signing of the US Infrastructure Investment Bill. This has left traders worried about legislation and tax issues [مربوط به ارزهای دیجیتال] Are, to sell.
The price of Bitcoin has fallen 2.2 percent in the last 24 hours and the market is now stabilizing near the $ 60,000 support. Technical indicators show that the Bitcoin market is in a state of saturation; An issue that could be a sign of a short-term price jump.
“DailyFX analyst Nicholas Cawley says:
Increasing sales pressure in the bitcoin market has pushed the price to the level we last saw 10 days ago. The harder and faster the fall the more [شبیه به] A correction is the multi-month price uptrend.
Cowley says he expects prices to reach new highs in the coming weeks if current support levels are maintained.
The feeling of greed in the market subsides
The Bitcoin Fear and Greed Index, which peaked in September, is gradually declining. This means that the strong optimism that existed among investors is gradually diminishing.
Arcane Research wrote in its report yesterday:
After the fall of Bitcoin prices today, the index [ترس و طمع] It is also likely to experience a significant drop. But this is normal in bullish markets and does not necessarily mean the end of the show.
The fall in the price of Bitcoin has also increased the volume of daily fluctuations, which shows that both buyers and sellers are skeptical about the direction of the price. The price of Bitcoin has fluctuated between $ 69,000 and $ 57,000 over the past seven days.
Was buying saturation the reason for falling prices?
Santiago Espinosa, strategist at MRB Partners, says the digital currency market is somewhat saturated. The image below shows the acceleration index of Bitcoin market cycles, and as it turns out, this index has moved from a high level of sales saturation over the past few months.
Spinoza says risk-taking among digital currency traders has been exacerbated by macroeconomic policies and fiscal stimulus by the US government. This means that digital currencies have more room to grow and the market can return to saturation levels.
“Arabi Partners strategist says:
I believe until the interest rate is more limited [بانکی در آمریکا], The upward trend can continue in this space full of speculation.