In cryptocurrencies, Bitcoin prices today plunged as the world’s largest cryptocurrency by market capitalization was trading more than 2% lower to $44,962 after surging as high as $46,233 in the last 24 hours. Bitcoin prices are up over 53% this year (year-to-date or YTD) amid volatility.
Ether, the coin linked to ethereum blockchain, was down nearly 4% to $3,109 whereas dogecoin declined over 7% to $0.26. Other digital coin like XRP, Litecoin, Stellar also fell more than 4-6% the last 24 hours whereas Cardano was up 1% to $1.8, as per CoinDesk.
The cryptocurrency sector is back in sight of a $2 trillion market value, a level last seen in May, but further gains face an obstacle from potential new US tax reporting requirements, reported Bloomberg. The value of more than 8,800 tokens tracked by CoinGecko has risen 55% to $1.95 trillion from a July low, helped by rallies in Bitcoin and Ether.
The crypto industry failed to adjust the tax reporting rules, which are projected to raise about $28 billion in revenue, despite a big push by lobbyists, and procedural issues could imperil efforts to change the provision when the House of Representatives takes up the bill. Bulls remain undaunted, with predictions of $100,000 for Bitcoin flying around after its latest comeback.
Before the rebound over the past three weeks, the crypto sector had been weighed down by a crackdown in China and worries over the environmental impact of the energy needed to create coins and process transactions. Supportive comments from billionaire Elon Musk and Ark Investment Management LLC’s Cathie Wood had helped Bitcoin rally.
Meanwhile, a $610 million theft in the burgeoning decentralized finance sector highlights ongoing security risks. The hackers have returned about half of the money.
(With inputs from agencies)
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