Bitcoin’s latest rally has been cut shut amid growing concerns trailing the potential impact of the new U.S. Infrastructure bill.
For several weeks, the world’s largest cryptocurrency struggled to stay above $30,000. However, as BTC PEERS reported, Bitcoin pulled a rather miraculous recovery and surpassed the $40,000 mark, climbing to a 2-month high of $42,000.
The recovery signaled an end to a bearish season for many crypto users as Bitcoin’s recovery triggered simultaneous gains in the value of other cryptocurrencies. Bitcoin’s ascent appears to have been cut shut, thanks to a clause in the new $550 billion U.S. Infrastructure bill unsettling a few nerves.
The bill, which is yet to be passed, will create a huge tax burden on the entire American crypto industry as it seeks to generate $28 billion from taxation on crypto brokers. It would also demand miners, DeFi protocols, and larger entities to file customer forms with the Internal Revenue Service (IRS).
7/ As those who understand crypto already know, users are pseudonymous & access is permissionless.It's literally impossible for non-custodial actors like miners to get the information they need to do Form 1099s.In practice, this could mean a de facto ban on mining in the USA.— Jake Chervinsky (@jchervinsky) July 30, 2021
The proposed bill has arguably forced the price of Bitcoin from $40,000 to about $39,600, as of press time.