Bitcoin Slides Down Nearing $60,000; Ether Reaches a New Low

Bitcoin fell in value reaching towards $60,000 while Ethereum dropped further reaching a new low this month. According to CoinGecko, the largest digital token fell 4% to $61,400 as of 1:32 pm Singapore. Ethereum which is the second largest cryptocurrency fell by 6.8%. Overall, the crypto market fell 7% in a day to $2.8 trillion.

Hayden Hughes, CEO of Alpha Impact said, “We’ve seen the U.S infrastructure bill get signed, which has initiated a selloff from traders who are concerned about regulation and taxation.” Hayden Hughes also stressed on China’s regulatory crackdown and its effects on crypto mining.

President Joe Biden’s new $550 billion infrastructure bill comes with new tax regulations and requirements for digital currencies. In other news, China’s strict crackdown on cryptocurrencies in previous months has affected the market. In the past year, the value of Bitcoin has surged to almost double its value. Other digital currencies such as Ethereum have also increased in value as they provide a strong hedge against inflation risks. Many experts have said that the growing market was eventually going to pause soon as digital currencies are considered extremely volatile.