Bitcoin Drops Below $60,000

Cryptocurrencies fell on Tuesday, with Bitcoin dropping below the $60,000 mark while Ether reached its lowest levels this month.

Bitcoin dropped as much as 8.2% to $58,661, while Ether fell by more than 10%. According to CoinGecko, the global crypto market cap has dropped some 10% in the past 24 hours to $2.7 trillion. The drop was not wholly unanticipated, as technical indicators had suggested that crypto’s recent strong run was due a setback. 

Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore, said it “would be unusual to keep moving up without corrections,” claiming that “we’re seeing a healthy pullback” after a prolonged rally.

Some analysts have also pinned the drop on new tax-reporting requirements for digital currencies that come as part of the infrastructure bill which President Biden signed into law on Monday. 

This year, bitcoin has more than doubled, while Ether has seen a sixfold increase. Both hit record-highs last week amid an enthusiasm for digital assets driven by speculative demand and controversial arguments that they can lower inflation risks.

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