Due to recent comments from Twitter’s CFO, Bitcoin and other popular cryptocurrencies are facing selling pressure. These comments are considered “anti-cryptocurrency” and are therefore souring the mood of cryptocurrency investors. On the contrary, the widespread belief in the dollar remains the same and is therefore strengthening the entire dollar index and making sure that it remains in bearish forces.
The other day, Bitcoin saw a 4.3% decline and stood at a value of $60,800. In contrast, the second most popular cryptocurrency saw a 5.3% loss and stood at a value of $4,320. This information is given according to the data of the coin table, and in addition, other cryptocurrencies have experienced a more significant loss.
According to Asia, when cryptocurrency trading hours began, Twitter’s CFO commented in the Wall Street Journal that simply investing his money in cryptocurrencies is not a good idea at the moment. Furthermore, he cited that cash holdings should not be invested in Bitcoins because this does not make any sense.
The CFO also mentioned that the volatility of Bitcoin prices and a significantly lower number of accounting standards are some of the most important reasons why the company has stopped investing and diversifying in cryptocurrencies. Following the negative comments from the Twitter CFO, there was a negative impact on the prices of Bitcoin and other cryptocurrencies. Twitter is a social media and has a significant influence on different aspects of the market.
Despite the fact that Twitter never predicted or expected it to be applied or dedicated to investments, the CFO of Twitter entered the market to give a reason to go against cryptocurrencies. Previously, traders were always willing to take the risk to profit from cryptocurrencies, but now they have a reason to take the risk off the table.
Furthermore, his attention was drawn to the rising dollar and, along with it, the controversial tax reporting requirement introduced by the United States.
Obstacles to the regulation of brokers
Recently, the President of the United States signed a bipartisan infrastructure bill. Unfortunately, according to the rules and regulations of the agreement, the requirements to become a cryptocurrency broker are further complicated, and there is also an increase in the tax structure. It is something that is going to make things even worse for cryptocurrency brokers and investors.
Under the infrastructure bill, brokers in the United States will have to provide their internal revenue service and transaction completion information. If they are doing any transaction of an amount above $10,000, they will have to provide all the requirements to the government.
Previously, miners and small brokers were hardly taxed, but now, the definition is about to change. It is problematic for cryptocurrency investors in the United States that the term brokers will now include some of the miners and not the traders. They will have to face challenges as investors.
The increased rules on the trading structure for brokers has been a game changer for some people. Also, due to this bill, many investors have withdrawn their investment from the cryptocurrency market, which has led to lower trading volume recently.
Only a few companies have acquired Bitcoin as a reserve asset, such as Square, MicroStrategy, and Tesla. For these companies, the widespread adoption of Bitcoin by businesses remains totally elusive to date.
Additionally, analysts have said that due to Bitcoin’s relatively high prices and a high degree of volatility, trading is a complete risk factor.
China goes against mining
Recently, China is also working to withdraw cryptocurrency mining within the geographical limits of the country. It’s all because China believes that cryptocurrencies are a threat to the country’s financial system. Apart from that, it leads to a very high amount of energy consumption, which is one of the most prominent reasons for the shortage of electricity supply in many sectors of the country. Therefore, the National Development and Reform Commission of China decided to consider the possibility of punishing the supply of electricity to institutions that are engaged in cryptocurrency mining. Analysts believe that it may also be affected because it could