Yesterday it was shown how the bitcoin (BTC) rate could crawl nicely above $ 40,000 again. But just as an outbreak seemed to be imminent, US President Joe Biden came with news that caused a dip. It seems that the president will be more strict on cryptocurrencies.
One of the measures being taken is that companies must report all crypto transactions worth more than $ 10,000 to the US tax authorities. Its purpose is to combat tax evasion. This will apply from 2023, Bloomberg said.
In addition, news came out that Biden was increasing the budget of the IRS, called the IRS, by $ 80 billion. This translates into doubling the number of employees at the IRS. This expansion would mainly focus on crypto.
This kind of news is also called FUD: fear, uncertainty and doubt. It creates uncertainty in the market. Yesterday, bitcoin managed to hit $ 42,600, but immediately after the news, the price plunged back to $ 38,170. This while not much has actually changed. For example, there was no mention of strong news such as a total ban on bitcoin.
Some Americans are still not happy. Fox Business’s Charles Payne says on Twitter that Biden is “going after crypto:”
“Just when you thought that President Biden with $ 80 billion is expanding the army of IRS agents to go after the rich – the government is going to double the workforce to go after crypto.”
Despite the downturn in the share price, it seems that the news has not triggered a crash like the one we saw two days ago. Yet the bitcoin price is now struggling with the $ 40,000 again with a small dip in the past few hours.