US won’t allow crypto to be used to avoid taxes
Bitcoin rose 8.8% on Wednesday to close at $41.9K. Evidently, the benchmark cryptocurrency had problems growing above $42K. We will see a strong reversal back to $39K on Thursday morning. Bitcoin fell 5.6% in 24 hours Ethereum – 4.8%. Other top altcoins are also falling from 1% (Terra), to 7.2% (Avalanche).
CoinMarketCap reports that the total capitalization for the crypto market fell by 4.5% to $1.75 trillion over the course of the day. The Bitcoin Dominance Index fell from 43.0% down to 42.7%.
The Cryptocurrency Fear and Greed Index climbed 6 points to 28 and is now in ‘fear territory.
The positive dynamics of stock indexes also helped Bitcoin grow, but on Thursday morning the negative pull on them remained in stark contrast to the selloff of cryptocurrencies.
Bitcoin soared after Janet Yellen posted a statement on the US Department of the Treasury’s website. The site doesn’t contain any strict controls to regulate the cryptocurrency field. It was probably posted too early and then removed quickly from the website.
On Wednesday, the US President Joe Biden signed his first executive order to regulate cryptocurrency in the country. It contained the most basic provisions regarding consumer protection, financial stability and illegal cryptocurrency use.
Federal departments will develop more specific measures to control the digital asset markets. The United States have made it clear that they won’t allow cryptocurrency to be used as a shadow business to avoid sanctions, taxes and money laundering. This control is much more difficult than centrally issued fiat currency.