Bitcoin drops below $60,000 for first time since 1 Nov, Ether falls amid broad crypto dip

Bitcoin — which last week hit a new record high of $69,000 — fell to as low as $58,600, its weakest in 19 days, and was last down around 7% on the day. It is down 14% from that peak.

Ether, the world’s second biggest cryptocurrency, fell to a 19-day low of $4,109.03 and was last down around 9.7% on the day.

If sustained, the move will be both cryptocurrencies’ biggest daily fall since September.

Bitcoin has more than doubled this year, while Ether is up about sixfold. Both scaled records last week amid a fervor for digital assets driven by speculative demand and controversial arguments that they can hedge inflation risks.

Technical indicators had suggested the strong run of late across the notoriously volatile market was due for a pause.

Some analysts also attributed the dip to new tax-reporting requirements for digital currencies that are part of the $550 billion infrastructure bill, which President Joe Biden signed into law Monday.

“We’ve seen the U.S. infrastructure bill get signed, which has initiated a selloff from traders who are concerned about regulation and taxation,” said Hayden Hughes, chief executive officer of Alpha Impact, a social-trading platform.

Hughes also cited concerns about China continuing its regulatory crackdown. The country will study the option of levying punitive power prices for companies that are involved in cryptocurrency mining, National Development and Reform Commission spokeswoman Meng Wei said at a press conference.